Despite the summer's warm temperatures, Congressman James T. Walsh has been working to avert a possible home heating oil crisis in Upstate New York this winter. I support Congressional legislation to alert Upstate consumers of impending winter shortages and high prices, taking appropriate action, and have encouraged the President and the Department of Energy to concentrate their attention on this issue of vital concern to Central New Yorkers. The potential crisis stems from OPEC's March 1999 decision to reduce worldwide crude oil production by 4.3 million barrels per day in order to drive up the then low price per barrel. That action, compounded by last winter's especially cold weather, significantly drove up the price per barrel of crude oil .
Crude oil is used to make home heating oil, diesel fuel, jet fuel, and gasoline.
This summer's sky-high gasoline prices are also a result of this action. While national attention has rightly focused on these high gasoline prices this summer, stocks of home heating oils have fallen to critically low levels virtually without notice. Although heating oil prices have stabilized since February, they are still quite high. Dramatically lower heating oil stocks today signal potentially higher prices this fall and winter. In addition, the bill encourages consumers to take actions to avoid seasonal price increases and minimize fuel shortages.