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DOE - Fossil Energy Techline - Issued on: June 15, 2007 DOE Awards Contract for Sale of 35,000 Barrels of Oil from the Northeast Home Heating Oil ReserveWashington, DC - The U.S. Department of Energy announced today that it has awarded a contract to Shell Trading (U.S.) Company, the successful bidder, for purchase of 35,000 barrels of home heating oil from the Northeast Home Heating Oil Reserve (NEHHOR). The Department will use the $3 million in receipts from the sale to supplement available funds for the award of new long-term storage contracts that will begin on October 1, 2007. Storage costs in the northeast have increased significantly since the Reserve's current 5-year storage contracts were issued in 2002, necessitating the sale of a small volume from the Reserve. The Department will work with Congress to resolve the funding issue in order to restore the inventory of the Reserve to its full authorized size of two million barrels. The sale of heating oil from the Reserve's site in Providence, Rhode Island results from an interactive on-line bid held June 13-14, 2007. This is the first sale of heating oil from the Reserve since it was established by Congress in the Energy Policy Act of 2000. There have been no heating oil supply disruptions that were significant enough to require use of the Reserve. The sale of 35,000 barrels represents less than two percent of NEHHOR's current inventory of 2 million barrels. - End of Techline
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