U.S. offers 315,000 barrels of heating oil to ease Northeast prices

Who asked for it: Maine Sens. Susan Collins, a Republican, and Angus King, an independent, wrote to the administration on Sept. 22 urging a release, WMTW reported. Energy Secretary Chris Wright cited their letter and "extensive discussions with Senator Collins" in ordering the loan, which he called "a temporary measure to solve a temporary supply disruption." Collins said about half of Maine households heat with fuel oil, and King said the cost is "absolutely through the roof."

The case for it: The Energy Department says the loan adds about 13% to regional supply, and Collins said it should push down heating oil costs this winter. Because borrowers pay back extra oil, taxpayers end up with a fuller reserve, not a smaller one. Wright also pressed New York and New England governors to back the Constitution natural gas pipeline from Pennsylvania, which he says would save residents billions; the administration released up to $42 million in Defense Production Act money for early work on it this week, Reuters reported.

The case against it: Tom Kloza, chief energy adviser at Gulf Oil, called the move "puzzling and probably inconsequential" for prices, Reuters reported. New York has blocked the Constitution pipeline on environmental grounds. And the administration proposed selling off this same reserve last year, a sale the Energy Department estimated would raise $100 million, Transport Topics reported.

What the evidence shows: The Energy Department describes the full reserve as roughly 10 days of Northeast supply, Transport Topics reported, so 315,000 barrels is about three days' worth. That supports a modest short-term cushion, not a large price cut, and the 13% figure is the department's own estimate.

What's still unknown: How many barrels companies actually bid for by Oct. 27, whether retail heating oil prices fall once deliveries land, and whether the department taps the rest. A department source told Reuters it will evaluate whether further releases are needed. The reserve has been released only twice in its 26-year history, most recently after Hurricane Sandy in 2012, and never before to lower prices, WMTW reported.

Hero photo is a heating oil delivery truck in Arlington, Mass., in 2023 (file photo), not tied to this release. The 315,000 barrels are an offer: final volumes depend on bids due Oct. 27. The 13% supply figure is the Energy Department's estimate. The three-day comparison is US Brief's arithmetic from the department's description of the reserve as about 10 days of Northeast supply, per Transport Topics.