Federal Consumer Information Center: Home Heating Oil Report

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Dear Home Heating Oil Customer:

Thank you for contacting the Department of Energy to share your concerns about the heating oil crisis, which has made this winter very difficult for people in the Northeast. I've heard loud and clear from you and your Members of Congress.

I want you to know that this Administration is working to solve the crisis. The enclosed literature provides you with the latest information about what is being done to resolve the problem. Heating oil is moving towards the Northeast now because the market is finally working. With the movement of this product to your ports and terminals, prices are coming down. Heating oil prices in the Northeast are down substantially. Diesel prices in the Northeast have come down. The situation is improving.

I know, however, that from where you sit right now, change is coming too slowly. The Administration, Congress, state governors, local governments and industry are doing everything in their power to make certain that markets work, work promptly, and that there are the tools available to ease your burdens and help you through the tough times.

Sincerely,

Bill Richardson
U.S. Secretary of Energy

Call to learn in You Qualify for Low-Income Emergency Heating Assistance

Delivering a Message to Oil Producing Countries

An artificial limitation on oil supply is the underlying reason for your high heating oil prices. We have embarked on an aggressive travel schedule to meet with foreign oil ministers to remind our energy trading partners that a partnership goes both ways.

So far, I have traveled to major energy trading partners such as Mexico, Saudi Arabia, Kuwait, and Norway and also met with the Venezuelan Energy Minister in Washington, DC. In these discussions, we've been clear that artificial limitations on oil supply are hurting Americans in the short-run and will be self-defeating for everyone in the long run.

I consider these trips crucial to the health of our economy and critical to snaking certain that you can afford to heat your homes. Oil prices are at their highest point since the Gulf War. If oil prices stay this high through spring, summer gasoline prices will mirror this winter's heating oil prices.

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Moving Oil: Identifying and Eliminating Barriers

Soon after the price crisis began, I met with 40 industry representatives involved in East Coast heating oil production and distribution to hear their suggestions. A few days after that I convened a Heating Oil Summit in Boston with consumers, industry and local leaders. There I received constructive suggestions on how to avoid a problem like this in the future. Here are some steps we've taken.

Refiners.We asked refiners to keep producing as much heating oil as possible prior to spring turnarounds.

Shippers.We have set up a Product Movement Task Force with the Coast Guard and are happy to report that they have three ice breakers in the Hudson devoted to making sure that heating oil gets to you as quickly as possible. The Coast Guard also reports that it has given heating oil tanker movement highest priority and will expedite all incoming shipments to the region.

Truckers.The Transportation Department will conduct a three-year pilot project granting automatic waivers to enable drivers to work longer hours in order to deliver more home heating oil to your homes.

Help for Small Distributors & Truckers.Small distributors said they needed bridge loans in order to make their deliveries. We delivered. The Department has since notified, through industry trade associations, virtually all of New England's heating oil distributors that there are existing Small Business Administration (SBA) loans available to help with cash flow -such as seasonal loans and general working capital. For additional information, please call your regional SBA office or log onto http://www.sba.gov/financing.

Call to learn in You Qualify for Low-Income Emergency Heating Assistance

Energy Emergency Action

Emergency Operations.I am re-establishing an Office of Energy Emergencies at the Energy Department, which was closed because of previous congressional direction, so that we can hit the ground running if there are problems in the future.

Strategic Petroleum Reserve. We have delayed pre-arranged deliveries of oil into the Strategic Petroleum Reserve (SPR) in an effort to keep oil on the market at a time when supplies are tight. In the long run, we will receive almost 600,000 more barrels of oil in exchange for this delay.

There have been a lot of people calling for the release of oil from the Reserve. The SPR represents our national energy insurance polity in times of emergency supply disruptions - we are limited by law to. use it for these purposes. The last and only time we used the Reserve in an emergency was during the Gulf War. We do not take its use lightly and should not use it to manipulate prices. But we will use the SPR if there is a severe energy supply disruption threatening our national security. And as the President said on February 15, 2000, he has not ruled out any options.

Federal Relief for Low-Income Consumers

Low-Income Home Energy Assistance. We have released $300 million of emergency LIHEAP funds, with most of it focused on the Northeast, making sure that those who need it have the means to pay their energy bills. The President is also planning to request additional funds from Congress to get even more LIHEAP money to the region.

Weatherization Assistance. The Department currently invests over $700 million a year in energy efficiency to reduce our reliance on heating oil and other fuels. This program has already cut the heating bills for four million families but we still have 20 million more homes of the poor and elderly to go.

The President is seeking supplemental funds for an additional $600 million for LIHEAP and an additional $19 million in weatherization money.

Call to Learn if You Qualify for Low-income Emergency Heating Assistance

Connecticut, Department of Social Services (800) 842-1508

Delaware, Energy Assistance (800) 484-HELP

Maine, State Housing Authority (800) 452-4668

Maryland, Energy Assistance (800)352-1446

Massachusetts, HEATLINE (800) 632-8175

New Hampshire, Energy Assistance (603) 271-2611

New Jersey, LIHEAP Hotline (800) 510-3102

New York, Family Assistance (800) 342-3009

Pennsylvania, Public Assistance (800) 692-7462

Rhode Island (800) 253-4328

Vermont Fuel Office (800)479-6151

For Other States:
Click on the HHS web site at
http://www.acf.dhhs.gov/programs/liheap/

Emergency LIHEAP dollars released by the President since January 25th:
CT - $11.9 million	NJ - $25.5 million
DE - $ 2.4 million	NY - $73.6 million
MA - $26.7 million	PA - $33.1 million
MD - $ 6.1 million	RI - $ 6 million
ME - $17.8 million	VT - $ 3.8 million
NH - $ 9.1 million	Other States - $84 million

Call to learn in You Qualify for Low-Income Emergency Heating Assistance