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The Department of Energy (DOE) on Wednesday announced plans to loan up to about one-third of the U.S. emergency heating oil reserve in an effort to ease price pressures facing consumers as global conflicts constrain energy supplies.
The announcement indicated that the DOE will loan up to 315,000 barrels of fuel oil from the Northeast Home Heating Oil Reserve to mitigate supply disruptions. The reserve holds a supply of one million barrels of ultra-low sulfur distillate, which serves as heating oil, at four locations in the Northeast due to the popularity of heating oil as a significant source of home heating in the region.
Under the terms of the DOE’s request for proposal, companies that borrow from the reserve in the 2026-27 heating season must return the same volume of oil plus a premium to refill the reserve before the 2027-28 heating season.
“The Trump administration is committed to doing everything in our power to lower energy costs for the American people,” said Energy Secretary Chris Wright. “After receiving Senators Collins’ and Kings’ letter and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast Home Heating Oil Reserve to mitigate heightened home heating oil costs during the upcoming winter.”
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“Of course, this is a temporary measure to solve a temporary supply disruption. I encourage the governors of New York and New England to work with the Trump administration to build the Constitution Pipeline and replace home heating oil with low-cost natural gas. Doing so would save their residents billions of dollars in home heating and electricity costs,” Wright added.
Sen. Susan Collins, R-Maine, said in a statement that she is pleased the Trump administration responded to the request to boost the supply of heating oil through reserve releases.
“Approximately half of Maine households rely on fuel oil to heat their homes, and I have repeatedly urged the administration to use every tool to increase supply and lower energy prices. The Department anticipates this release will put downward pressure on home heating oil costs and make a real difference for Maine homeowners as they prepare for winter,” Collins said.
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Collins noted in a press release that the planned release would represent a 13% increase in home heating oil supplies in New England, and should help lower prices as heating oil costs have risen 70% from a year ago.
Sen. Angus King, I-Maine, added that their state “has been hit especially hard by the run up in fuel prices since the beginning of the Iran War and the most obvious example is home heating oil.”
King said that Maine is “one of the most dependent states in the country on home heating oil and the cost is absolutely through the roof. This release of stored oil in New England will hopefully be some help.”
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Releases from the reserve would be completed by Nov. 13 and come from storage sites in Boston, South Portland, Maine; and New Haven, Connecticut.
The volume available per site wouldn’t exceed 150,000 barrels, while the minimum offer quantity would be 25,000 barrels. Offerors can submit multiple bid offers, and the process looks to ensure a competitive bidding process in which both fuel retailers and terminal holders can participate.
Bids for the DOE solicitation would be due by next Tuesday, Oct. 27.
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