Washington, D.C. - Senator Charles E. Schumer and Senator Hillary Rodham Clinton today called on the Administration to order a release from the Northeast Home Heating Oil Reserve. Citing cold winter temperatures, rising energy prices and a shortage in the distillate fuel supply, Senator Clinton and Senator Schumer joined their colleagues including Senators Susan M. Collins, Jack Reed and others from Northeast and Mid-Atlantic states in sending a letter to President Bush last night - urging him to order a release from the Reserve.

In their letter, the Senators note that "according to the Energy Information Administration's (EIA) Short-Term Energy Outlook released on Friday, February 7, 2003, heating oil prices are now expected to increase 52 percent this winter compared to last year. According to EIA, residential heating fuel prices rose 27.9 cents per gallon since October 2002 and are 37.2 cents per gallon higher than last year at this time. The average cost is now $1.53 per gallon."

"High energy prices caused by a shortage of distillate fuel are causing significant economic strain across the Northeast. Given the current economic situation, small businesses, families and states cannot afford further increases in distillate fuel prices. A release from the Northeast Heating Oil Reserve would provide significant relief to the region and prevent the crisis that occurred during the 2000 winter. We urge you to release distillate from the Reserve immediately," the letter says.

Senator Schumer said, "New York communities have been hit with a quadruple whammy this winter: a soft economy, rising unemployment, higher gas and heating oil prices, and bitter weather conditions that threaten to make heating bills even higher. If we don't act now and release from the heating oil reserve, the result could be disastrous for working families."

Senator Clinton said, "Continuing frigid temperatures and soaring heating oil prices in the Northeast make it obvious that people need help with heating their homes this winter. On behalf of all those who need help heating their homes this winter I urge the Administration to order a release from the Northeast Home Heating Oil Reserve - it's just common sense and compassion."

Senators Schumer and Clinton have both been vocal advocates for the provision of affordable home heating, calling for the release of emergency LIHEAP funds and imploring the Administration to reconsider proposed cuts to the program. Their efforts - along with those of their colleagues Senators Reed and Collins - led to the release of $200 million in emergency LIHEAP funds with $36.77 million going to New York alone.

[A copy of the letter is attached]

February 10, 2003

The President The White House 1600 Pennsylvania Avenue, NW Washington, DC 20500

Dear Mr. President:

We respectfully request that you order a release from the Northeast Home Heating Oil Reserve. Colder winter temperatures, rising energy prices, and a shortage in the distillate fuel supply warrant a release in order to reduce residential heating oil prices and address the significant shortages in the region.

According to the Energy Information Administration's (EIA) Short-Term Energy Outlook released on Friday, February 7, 2003, heating oil prices are now expected to increase 52 percent this winter compared to last year. According to EIA, residential heating fuel prices rose 27.9 cents per gallon since October 2002 and are 37.2 cents per gallon higher than last year at this time. The average cost is now $1.53 per gallon. A number of international and domestic factors are contributing to the higher costs. The prospect of war with Iraq, the prolonged strike in Venezuela, increased demand for heating oil due to the cold winter and low distillate fuel oil inventories are significantly impacting the price of heating oil.

January's cold temperatures caused a surge in distillate fuel demand in the Northeast. Demand rose to 4.9 million barrels per day for the last week of the month - the highest weekly average ever. Within the New England region, distillate fuel inventories plunged more than 30 percent, dropping from 8.1 million barrels to 5.6 million barrels during the month of January. There is currently a dangerous shortage of petroleum distillate in the region. The combination of distillate shortage in the region, low oil inventories throughout the nation and prolonged cold weather significantly raises the probability for severe price spikes in the coming weeks unless the Administration takes action immediately.

High energy prices caused by a shortage of distillate fuel are causing significant economic strain across the Northeast. Given the current economic situation, small businesses, families and states cannot afford further increases in distillate fuel prices. A release from the Northeast Heating Oil Reserve would provide significant relief to the region and prevent the crisis that occurred during the 2000 winter. We urge you to release distillate from the Reserve immediately.

Thank you for your consideration, and we look forward to your response.

Sincerely,

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