Northeast heating oil reserve now available for use in ‘extreme events’

WASHINGTON – Just in time or too late?

The Bush administration has announced that the Northeast Home Heating Oil Reserve, a pool of 2 million barrels of government-owned heating oil that could be used during severe weather, is open for business. Just don’t ask for any too soon – never mind the yardsticks of snow on the ground.

Secretary of Energy Spencer Abraham has notified Congress that the reserve is just that – a reserve that will have tight controls designed to release the precious commodity to ensure life and safety in extreme weather. Abraham cautioned that suppliers who may be thinking of the supply as an alternative to traditional resources from the Gulf of Mexico states or abroad should take a long, deep breath.

“If extreme events conspire to threaten life, health or the economic well-being, the reserve will help provide additional oil to fill the gap until private suppliers can resume their business activities,” Abraham said, indicating that suppliers should maintain business operations as if the reserve didn’t exist.

The reserve was pushed strongly by all members of the Maine congressional delegation, and Abraham made special note of the work by Sens. Olympia J. Snowe and Susan M. Collins in helping create it. Abraham is a former Republican senator from Michigan who lost a re-election bid last November.

“The reserve was established as an insurance policy against supply, inventory and delivery problems in the wake of last winter’s extreme weather that pounded the northeast United States,” said Abraham in a notification letter sent to members of Congress. “The reserve, if needed, will assist families and small business owners in times of severe crisis that impact heating oil supply and distribution.”

Abraham said the government would “use the reserve sparingly” to respond to energy-supply disruptions, and it was no panacea for high prices alone.

Congress authorized the oil reserve last November and it was supported by both presidential candidates. In his “Blueprint for New Beginnings” budget plan, President Bush said he wants $8 million to fund the operation of the reserve. in fiscal 2001.