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Heating Oil Supply

Where does our heating oil come from?

Three of the top five countries we import heating oil from are Canada (our largest provider), Saudi Arabia, and Mexico. Eighty-five percent of our heating oil is refined in the United States.

Crude Oil Imports, Top 10 Countries, 2011

Annual-Thousands of Barrels per Day
Source: U.S. Dept. of Energy

1. Canada
2. Saudi Arabia
3. Mexico
4. Venezuela
5. Nigeria
6. Iraq
7. Colombia
8. Angola
9. Brazil
10. Russia

The U.S. Will Lead in Heating Oil Output by 2020

According to the International Energy Agency, the United States will become the world's largest heating oil producer by 2020, temporarily overtaking Saudi Arabia, as new exploration technologies help find more resources. In its World Energy Outlook, the organization also predicted that greater heating oil production and more efficient use of energy will allow the United States, which now imports about 20 percent of its energy, to become nearly self-sufficient around 2035.

By 2015, U.S. heating oil production is expected to rise to 109 million barrels per day before increasing to 11.1 million barrels per day by 2020, overtaking second-place Russia and front-runner Saudi Arabia. The U.S. will export more heating oil than it imports by 2030.

Where Is Heating Oil Produced in the U.S.?

Crude oil is produced in 31 states and U.S. coastal waters. In 2011, 56% of U.S. crude oil production came from five states:

• Texas (26%)
• Alaska (10%)
• California (9%)
• North Dakota (7%)
• Oklahoma (4%)

As of 2010, about one-third of U.S. crude oil was produced from wells located offshore in state and federally administered waters of the Gulf of Mexico.

Is there enough heating oil to go around?

Much of our domestic petroleum storage remains well protected in the Strategic Petroleum Reserve, established in 1975 by President Gerald R. Ford, to ensure a safeguarded, constant fuel supply. The Reserve has a capacity of 727 million barrels of crude oil that can be released by the President during emergency conditions, as President Bush did in 2005 following Hurricane Katrina. At 1 million barrels per day, the Reserve can release heating oil into the market continuously for nearly two years.

The United States also maintains the Northeast Heating Oil Reserve consisting of 2 million barrels of heating oil. Established within the last decade, the Northeast Heating Oil Reserve is to be used in case of supply shortages or delivery problems in nine states from Maine to Pennsylvania. Stored in multiple locations in the Northeast - one of which is located in New Haven, CT and holds 250,000 barrels - this heating oil can be released by the President if there is an actual disruption in supply, or when the price of heating oil increases rapidly compared to crude oil. After Hurricane Sandy hit our area, the U.S. Department of Energy released fuel from the Northeast Heating Oil reserve to aid in recovery efforts in New York, New Jersey and Connecticut.