Staff Reports
In the Northeast, diesel and heating oil supplies are more than 50 percent below the recent norm, according to the Associated Press, prompting concerns that supply disruptions could be caused by an extreme weather event.
Because of the crisis in Ukraine and other factors, fuel supplies are lower than usual across the country. Still, the Northeast has it the worst.
According to a survey conducted by the US Department of Energy, the price of distillates like diesel fuel and heating oil is 63% lower than the five-year average in New England, and 58% lower than the same average from Maryland to New York. The organization reported that gasoline supplies along the whole East Coast are not as severe as they once were, but are still at the lowest levels in in a decade.
During the colder months, people in the Northeast often resort to heating oil while others in other parts of the country use natural gas or electricity instead. Energy authorities warn that most of the petroleum used from the Middle Atlantic states to Maine originates from Gulf Coast refineries, and that a severe weather event might cause difficulties if the NOAA's predictions for an active hurricane season pan through.
After Labor Day, New England governors and their energy directors will get together to examine the problem, which Energy Secretary Jennifer Granholm has called for. Meanwhile, in a letter to governors, she asked them to do what they can to increase fuel reserves in the coming weeks.
To make up for dwindling supplies, the Energy Department also wrote to seven major oil corporations.
Federal officials have been keeping an eye on the situation and are making an effort to get out in front of it. According to Michael Ferrante of the Massachusetts Energy Marketers Association, consumers aren't likely to store up on expensive gasoline for storage because of the widespread belief that prices will eventually decline.
With Russia's invasion of Ukraine, the energy supply system was already in disarray as it tried to keep up with surging demand, and now that's been thrown into further disarray, raising fears about fuel stocks. Concerns over the world's energy supply have been sparked by the conflict.
Diesel fuel is a pressing issue in New England at the end of summer, but winter heating needs are just around the corner.
Disruptions in heating oil distribution would have a significant impact on the region because so many people rely on it (24% in Massachusetts and more than 60% in Maine).
Democratic Maine Governor Janet Mills has requested an urgent conference with other governors to discuss the security of the nation's supply of heating oil.
Spokesperson for the Mills administration Anthony Ronzio claimed that Maine is distinctly sensitive to the rising pricing and instability the global fossil fuel market is now experiencing as a result of Russia's invasion of Ukraine.
While this is cause for concern, wholesalers and retailers are cooperating well, and Ferrante has stated that he expects inventory levels to rise in September and October.
He is confident there will be enough heating oil to go around.
Suppliers and retail delivery businesses are worried about price and stock levels, but no alarm bell is being raised at this moment, he said. In his opinion, a crisis is not imminent.
The heating oil reserve was established by the Energy Department, and it currently stores 1 million barrels in ports across the Northeast. In an urgent situation, that resource could be used.
The preceding is a summary of an article that originally appeared on Headline Wealth.
