Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. energy chief Granholm meets with New England governors on fuel supplies

Published 09/15/2022, 05:28 PM
Updated 09/16/2022, 02:16 PM
© Reuters. FILE PHOTO: U.S. Secretary of Energy Jennifer Granholm speaks during a briefing about the bipartisan infrastructure law at the White House in Washington, U.S., May 16, 2022. REUTERS/Elizabeth Frantz/File Photo

By Timothy Gardner

WASHINGTON (Reuters) -U.S. Energy Secretary Jennifer Granholm met with the governors of six states in the U.S. Northeast on Thursday to talk about their concerns about soaring fuel costs heading into winter, the Department of Energy said.

The meeting came after governors, including Charles Baker of Massachusetts, Janet Mills of Maine and Ned Lamont of Connecticut, wrote file:///C:/Users/8003938/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/EAB21553/incoming%20-%20Baker%20Lamont%20Mills%20Sununu%20McKee%20and%20Scott.pdf Granholm in July about their concerns about prices for liquefied natural gas (LNG) and other fuels in the wake of Russia's invasion of Ukraine.

Participants in the meeting talked about ways to ensure adequate supplies of electricity and heating fuels in region which typically experiences tight energy markets in winter, a source at the DOE said.

The DOE has made sure contracts for LNG for industry and other consumers are in place. In addition, President Joe Biden's infrastructure law last year included a $500 million boost in funding for the Low Income Home Energy Assistance Program, which helps U.S. consumers access heating fuel and weatherize their homes, and the administration has called on Congress for more funding.

"This meeting is an opportunity to talk about what has happened and how we can continue to stay really closely aligned to mitigate any risks on reliability and try to maintain affordability (of fuel) in the coming weeks and months," the source said.

The New England governors said in the letter that the DOE should explore suspending the Jones Act, a law requiring goods moved between U.S. ports to be carried by U.S. staffed and flagged ships that are built domestically, for part or all of the upcoming winter.

They also urged the department to see how its heating oil and gasoline reserves in the Northeast, which hold a total of 2 million barrels of fuel, could be used this winter and to see about modernizing them given the region's changing resource mix.

In response to a question about waiving the Jones Act, the source reiterated that LNG contracts have been ensured. "In the event that there is an issue where additional supplies of heating fuels are needed, we would work with the states as appropriate to see what tools are needed," the source added.

© Reuters. FILE PHOTO: U.S. Secretary of Energy Jennifer Granholm speaks during a briefing about the bipartisan infrastructure law at the White House in Washington, U.S., May 16, 2022. REUTERS/Elizabeth Frantz/File Photo

Granholm late last month urged the seven major U.S. oil refiners including Exxon Mobil Corp (NYSE:XOM) and Valero Energy Corp (NYSE:VLO) to not increase fuel exports after energy companies sent record shipments abroad as domestic oil production rose and global fuel demand recovered.

Granholm "underscored the concern about the low levels of privately-held refined product inventories in key regions, including New England, and its ask of oil and gas companies to ensure they are building adequate inventories to handle disruptions from hurricanes or other events," the DOE said in a statement about the meeting.  

Latest comments

There are some states to the South that would gladly ablige. Here’s how this works since it seems to be a mistery to half (probably 35%) of the country thanks to college “education” : 1. Invest in oil before you need it. 2. Stop discouraging others from investing in oil. 3. As you were.
Another anti-intellectual know-nothing kook weighs in.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.