The United States also imports DFO in the form of heating oil. In 2013, distillate fuel oil imports exceeded 56.4 million barrels; although up from the previous year's 46.2 million barrels, distillate fuel imports have declined. Overall, some 6.9 million households rely on heating oil nationally. The number of household users, however, has declined from the 8.7 million households in 2006-2007, and the Energy Information Administration (EIA) projects a 3% decline for 2013-2014. By and large, the Northeast United States represents the greatest demand for home heating oil where slightly more than 5.5 million households relied on it for primary space heating during the winter of 2012-2013. Policy Considerations

No single factor explains the Northeast's declining demand for heating oil. In its 13-year history, NHHOR has only released fuel in response to distillate fuel shortages during natural disasters, and not in response to a market dislocation. While the NHHOR release demonstrated the utility of maintaining a distillate stockpile, it was not based on the conditions of a heating oil supply shortage. The Northeast region's reduced dependence on heating oil and the increased availability of alternative heating fuels raise the question of whether DOE should continue maintaining NHHOR, and whether Congress should continue to monitor the region's heating oil supply. It also includes No. 1 Fuel Oil). National Oilheat Research Alliance
Congress authorized the National Oilheat Research Alliance (NORA) in the 2000 Energy Act to develop projects for the research, development, and demonstration of clean and efficient oilheat utilization equipment; and to operate programs that enhanced consumer and employee training. Appendix C. Northeast Home Heating Oil Reserve
A number of factors may have contributed to the near doubling of heating oil prices in some Northeastern states during the winter of 1999-2000, but the most significant may have been the sharply lower storage levels of middle distillate stocks (the range of home heating oil and diesel fuels) at the time. Heating oil prices continue to remain high, as do other petroleum products and the price of crude oil, which may be discouraging use. In response to the 1999-2000 heating oil price spike and supply shortage, Congress authorized the Secretary of Energy to establish the Northeast Home Heating Oil Reserve (NHHOR) in the Energy Act of 2000 ( P.L. 106-469 ). As a 2 million barrel emergency stockpile of government-owned heating oil, NHHOR was intended to meet roughly 10 days of demand by the Northeastern states at the time it was created.
The United States' exports and imports of refined petroleum products include distillate fuel oil—the general category for heating oil. In 2013, distillate fuel oil imports exceeded 56.4 million barrels, up from the previous year's 46.2 million barrels. However, distillate fuel imports have been declining. Overall, some 6.9 million households rely on heating oil nationally. The number of overall household users, however, has declined from 8.7 million in 2006-2007, and the Energy Information Administration (EIA) projects a 3% decline for 2013-2014. By and large, the greatest demand for home heating oil is in the Northeast United States, where some 5.5 million households relied on it for primary space heating during the winter of 2012-2013, consuming 645.5 gallons per household on average (compared to 766.4 gallons by Midwest households).
In response to the near doubling of heating oil prices in some Northeastern states during the winter of 1999-2000, which raised the concern of many Northeastern lawmakers, Congress authorized 2 million barrel Northeast Home Heating Oil Reserve (NHHOR) in the Energy Policy Act of 2000 (P.L. 106-469). As an emergency stockpile of government-owned heating oil, Congress intended NHHOR to meet roughly 10 days of demand by the Northeastern states at the time. Currently, NHHOR stands at under 1 million barrels, split between Groton, CT (400,000 barrels), and Revere, MA (500,000 barrels).
Middle-distillate range petroleum products can serve as both heating and transportation needs. In its 13-year history, NHHOR has only released fuel for use by federal, state, and local emergency responders during natural disasters and not for retail sales during market dislocations. While the release demonstrated the utility of maintaining a distillate stockpile, it was not based on the conditions of a heating oil supply shortage. The recent sale of NHHOR stocks and replacement with ultra-low sulfur distillate increased its utility as a transportation fuel. In the absence of NHHOR, residential consumers have the recourse of substituting ultra-low sulfur diesel fuel for their heating needs, although this fuel tends to be more expensive per gallon than heating oil.
Congress also authorized the National Oilheat Research Alliance (NORA) to develop projects for the research, development, and demonstration of clean and efficient oilheat utilization equipment; and to operate programs that enhanced consumer and employee training. Further, Congress authorized the Low Income Home Energy Assistance Program (LIHEAP) to help offset some homeowners' heating bills. Several charities also provide assistance.
A number of factors may contribute to the nation's declining demand for heating oil. The most significant factor may be that the increasing price of heating oil has discouraged use. Heating oil prices continue to remain high, as do other petroleum products and crude oil. These factors raise several questions: what factors have contributed to the decline of heating oil consumption; does the Northeast still depend on heating oil to the extent it did over a decade ago; and should Congress continue to monitor the Northeast heating oil supply?