U.S. Taps Heating Oil Reserves to Curb Prices as Wright Calls for Natural Gas Pipeline Approval
nashnova research
The Trump administration is lending out 315,000 barrels of heating oil — roughly a third of the Northeast emergency reserve — to cushion the Iran-war price spike; Energy Secretary Wright simultaneously pressed states to approve a natural gas pipeline, framing the release as a stopgap before a structural supply fix.
How much was released, and how long does it last?
The government is lending 315,000 barrels from the Northeast Home Heating Oil Reserve, about one-third of its 1-million-barrel total. Delivery must be completed by November 13.
This means → the reserve was designed to cover roughly 10 days of regional demand. Releasing a third of it leaves an even thinner cushion.
In plain terms = this oil can ease a few peak days for Northeast households, but it is nowhere near enough to reshape the winter supply picture.
How high have prices gone?
AAA data shows the national average diesel price at roughly $6.32 per gallon, a record since the Iran war began.
Heating oil and diesel come from the same refining step — when crude is distilled, both fuels are produced together — so their prices move in lockstep.
This means → as long as diesel stays elevated, heating oil cannot fall on its own. The reserve release offers only marginal relief.
When was this reserve last used?
The Northeast reserve was created under President Clinton and stored at commercial facilities across the region. It was last tapped during Hurricane Sandy in 2012.
This is the first activation since 2012 — a gap of more than a decade.
This reflects how severe the current energy pressure is: a tool untouched for over ten years has been pulled back into service.
Why is Wright making this about a gas pipeline?
Energy Secretary Chris Wright called the release "a temporary measure to address a temporary supply disruption," while urging New York and New England governors to approve the Constitution natural gas pipeline.
The pipeline, led by Williams Companies, would move Pennsylvania natural gas into New York and New England. This week it received up to $42 million in Defense Production Act funding for preliminary work.
In plain terms = Wright's argument is that the reserve release is a painkiller; the pipeline is the cure. But pipeline permits have been stalled in New York State for years — this statement doubles as political pressure on governors.
How much election pressure is behind this?
About 4% of U.S. households rely on heating oil, with the Northeast far above the national average.
Maine Republican Senator Susan Collins, facing a tight re-election race, wrote to President Trump in late September asking him to tap the reserve.
The release covers storage sites in Maine, Massachusetts, and Connecticut, opened via competitive bidding to fuel retailers — all three states are politically sensitive ahead of the November 3 election.
Is the Strategic Petroleum Reserve being drawn down too?
The administration has agreed to lend 172 million barrels of crude from the Strategic Petroleum Reserve — the national emergency oil stockpile for extreme supply disruptions. That reserve has fallen to its lowest level since 1982.
Last year the government even proposed selling the Northeast heating oil reserve outright, estimating proceeds of about $100 million.
This means → multiple reserve buffers are being consumed at once: the SPR is at a historic low, and the heating oil reserve is shrinking. If a new supply shock hits this winter, the remaining cushion is thin.
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