Low fuel inventories cause special concern in US Northeast

Aug 27, 2022, 4:41 PM | Updated: Aug 28, 2022, 9:39 am
FILE - Drivers for an oil delivery company fill their trucks at the Sprague terminal, on Jan. 16, 2...

FILE - Drivers for an oil delivery company fill their trucks at the Sprague terminal, on Jan. 16, 2014, in South Portland, Maine. Diesel and heating oil supplies in the Northeast are more than 50% below the recent average, raising concerns that an extreme weather event could cause supply disruptions, federal officials said. (AP Photo/Robert F. Bukaty, File)

(AP Photo/Robert F. Bukaty, File)

PORTLAND, Maine (AP) — Diesel and heating oil supplies in the Northeast are more than 50% below the recent average, raising concerns that an extreme weather event could cause supply disruptions, federal officials said.

Fuel supplies are lower than normal across the country for a variety of reasons, including the war in Ukraine. But it’s the worst in the Northeast.

Diesel fuel and heating oil, which comprise the distillate category, are 63% below the five-year average in New England and 58% below the same average from Maryland to New York, according to a survey by the Department of Energy. Gasoline inventories are not as bad, but are still at their lowest levels in nearly a decade along the entire East Coast, the agency said.

The Northeast is heavily dependent on heating oil to keep homes warm in the winter, while other regions rely more on natural gas and electricity. Also, the National Oceanic and Atmospheric Administration has projected an active hurricane season, and a powerful weather event could cause disruptions, since most fuel consumed from the Middle Atlantic states to Maine comes from Gulf Coast refineries, energy officials say.

Energy Secretary Jennifer Granholm is convening a meeting of New England governors and their energy directors after Labor Day to discuss the situation. In the meantime, she has urged governors in a letter to take whatever steps they can to shore up fuel supplies in coming weeks to prevent any problems.

The Energy Department also sent letters to seven major oil companies, asking them to hold onto their stocks to help offset low stocks.

The federal agency has been monitoring the problem and is attempting to be proactive with outreach. But there’s little incentive for buyers to stock up on high-priced fuel for storage because it is anticipated that prices will drop, said Michael Ferrante, of the Massachusetts Energy Marketers Association.

The fuel inventory concerns come against a backdrop of Russian’s invasion of Ukraine further shaking up an energy supply chain that was seeking to catch up with growing demand. The war is causing worries about the adequacy of energy supplies around the world.

In New England, the immediate concern in the late summer is diesel fuel, but the winter heating season looms not far behind.

Heating oil disruptions would hit the region hard because the percentage of homes that rely on it range from 24% in Massachusetts to more than 60% in Maine, the most heavily dependent states.

Maine Gov. Janet Mills, a Democrat, has urged the Energy Department to expedite its meeting with governors to talk about maintaining a stable heating oil supply.

Maine is “distinctly vulnerable to the increased prices and volatility the global fossil fuel market is now experiencing due to the Russian invasion of Ukraine,” said Anthony Ronzio, a spokesperson for the Mills administration.

Despite the concern, wholesale suppliers and retailers are working well together, and Ferrante said he anticipates inventories will increase in September and October, easing the immediate concerns.

He said he is optimistic that there will be an ample supply of heating oil.

“Suppliers and retail delivery companies are concerned about prices and inventory, but there’s not any alarm bell being rung at this time,” he said. “I don’t see a crisis at this point.”

The Energy Department created a heating oil reserve that holds 1 million barrels in terminals in the Northeast. Those could be tapped in an emergency.

___

Follow David Sharp on Twitter @David_Sharp_AP

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

starbucks...
Associated Press

Starbucks leader grilled by Senate over anti-union actions

Longtime Starbucks CEO Howard Schultz faced sharp questioning Wednesday before the Senate Health, Education, Labor and Pensions Committee
19 hours ago
FILE - The overdose-reversal drug Narcan is displayed during training for employees of the Public H...
Associated Press

FDA approves over-the-counter Narcan; here’s what it means

The U.S. Food and Drug Administration on Wednesday approved selling naloxone without a prescription, the first over-the-counter opioid treatment.
19 hours ago
FILE - A Seattle police officer walks past tents used by people experiencing homelessness, March 11...
Associated Press

Seattle, feds seek to end most oversight of city’s police

  SEATTLE (AP) — The U.S. Justice Department and Seattle officials asked a judge Tuesday to end most federal oversight of the city’s police department, saying its sustained, decade-long reform efforts are a model for other cities whose law enforcement agencies face federal civil rights investigations. Seattle has overhauled virtually all aspects of its police […]
2 days ago
budgets...
Associated Press

Washington moves to end child sex abuse lawsuit time limits

People who were sexually abused as children in Washington state may soon be able to bring lawsuits against the state, schools or other institutions for failing to stop the abuse, no matter when it happened.
2 days ago
Three children and three adults were killed in a shooting at a private Christian grade school in Na...
Associated Press

Nashville shooter who killed 6 drew maps, surveilled school

Three children were killed in a shooting at a private Christian grade school in Nashville on Monday, hospital officials said.
3 days ago
(Photo from KIRO 7)...
Associated Press

Police: passenger pulled jet’s emergency slide before LAX to SEA flight

A passenger on a Delta Air Lines flight out of Los Angeles International Airport was detained for triggering the plane’s emergency slide prior to takeoff, authorities said.
3 days ago

Sponsored Articles

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.
Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.
SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Low fuel inventories cause special concern in US Northeast