Fuel Oil News

Fuel Oil News March 2011

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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DATELINE ments increased 8 percent in December 2010, to 6,798 units, up from 6,279 units shipped in December 2009. Commercial electric storage water heater shipments increased 15 percent in December 2010,to 4,659 units,up from 4,053 units shipped in December 2009. Year-to-date U.S.shipments of commer- cial gas storage water heaters increased 4 percent, to 78,614 units, compared with 75,487 units shipped during the same period in 2009. Year-to-date commercial electric storage water heater shipments increased 5 percent to 58,349 units,up from 55,625 units shipped during the same period in 2009. Warm Air Furnaces U.S.shipments of gas warm air furnaces for December 2010 increased 15 percent, to 270,074 units, up from 234,451 units shipped in December 2009. Oil warm air furnace shipments decreased 23 percent, to 5,464 units in December 2010,down from 7,048 units shipped in December 2009. Year-to-date U.S.shipments of gas warm air furnaces increased 13 percent, to 2,453,279 units, compared with 2,174,528 units shipped during the same period in 2009. Year-to-date U.S. shipments of oil warm air furnaces increased 2 percent to 56,445 units, compared with 55,619 units shipped during the same period in 2009. Central Air Conditioners and Air-Source Heat Pumps U.S. shipments of central air conditioners and air-source heat pumps totaled 340,800 units in December 2010,remained relatively unchanged, from 342,948 units shipped in December 2009.U.S. shipments of air con- ditioners decreased 11 percent, to 206,356 units,down from 232,999 units shipped in December 2009.U.S. shipments of air- source heat pumps increased 22 percent, to 134,444 units, up from 109,949 units shipped in December 2009. Year-to-date combined shipments of res- idential central air conditioners and air-source heat pumps increased 0.2 per- cent, to 5,167,485 units, up from a total of 5,157,712 units shipped in December 2009. Year-to-date shipments of central air con- ditioners decreased 3 percent, to 3,419,506 units, down from 3,515,648 units shipped during the same period in 2009. The year- to-date total for heat pump shipments increased 7 percent, to 1,747,979 units, up from 1,642,064 units shipped during the same period in 2009. * NOTE: Industry figures are estimates derived from the best available figures supplied by a sample of AHRI member com- panies and are subject to revision. NORTHEAST HOME HEATING OIL RESERVE SALE TO CONVERT INVENTORY TO CLEANER BURNING FUEL During February 2011 the U.S.Department of Energy (DOE) conducted a sale of the inventory of the 1,984,253-barrel Northeast Home Heating Oil Reserve for the purpose of converting its high sulfur (2,000 parts per million) stocks to cleaner burning ultra low sulfur distillate (15 parts per million). The sale was conducted in two phases— the first sale was held on February 3 and resulted in the sale of 984,253 barrels stored at the Hess First Reserve Terminal in Perth Amboy, NJ.The second sale was held on February 10 and resulted in the sale of 1,000,000 barrels from two storage sites in Connecticut:Hess Groton Terminal and the Magellan New Haven Terminal.Awards on February 3,2011 were as follows:Hess First Reserve Terminal,Perth Amboy,NJ went to Morgan Stanley, 500,000 barrels; Shell Trading U.S.Awards on February 10, 2011 were as follows:Hess Groton Terminal, Groton,CT went to Shell Trading U.S.Co., 150,000 barrels;Sprague Energy,100,000 bar- rels;Magellan New Haven Terminal,New Haven,CT went to Hess Corp.,300,000 bar- rels;Morgan Stanley, 450,000 barrels. Purchasers are required to take delivery of the product no later than March 31,2011. DOE will receive approximately $227 mil- lion from the sale of the heating oil stocks. Receipts will be used for the purchase of ultra low sulfur distillate during summer 2011. The Northeast Home Heating Oil Reserve was authorized by Congress in the CALENDAR OF EVENTS APRIL Northshore Oil Heat Association Meeting April 18 (781) 760-7409 robert_hernon@yahoo.com MAY Atlantic Region Energy Expo May 3-5, 2011 Atlantic City Convention Center Atlantic City, NJ www.areetradeshow.com FW Webb Vermont All-State Expo May 5th Seminary Hill Barre,VT For more info, call Ray DiPirro, (781) 665-1967 NAOHSM's 58th Annual Convention and Trade Show May 22-26, 2011 Hershey, PA www.naohsm.org JUNE 34th North American Heating & Energy Expo June 7 – 8 Boston,MA www.nefiexpo.com Energy Policy Act of 2000 as a two million barrel emergency stockpile of Government- owned heating oil for the Northeastern States.The Reserve’s mission is to supple- ment commercial fuel supplies should the region either face or experience a severe dis- ruption to normal supplies. Of the U.S. households that use heating oil to heat their homes,69% reside in the Northeast. To learn more about the Northeast Home Heating Oil Reserve, please visit www.fossil.energy.gov/programs/reserves/ heatingoil/index.html. FUEL OIL NEWS (ISSN 0016-2396), Canada Publication Mail Agreement #1588621, is published monthly by Bev-Al Communications, Inc. 1030 W. Higgins Road, Suite 230, Park Ridge, Il 60068. Circulated free of charge to qual- ified individuals in the oil heating industry in the United States. Additional and/or personal copies are available on a paid subscription basis only. 1-year subscription rates: $28.00 USA. $40.00 Canada and Mexico via service postage. $90.00 other foreign countries via air-mail postage. Single copies: $8.00 U.S. via first-class postage. $12.00 other Canada/Mexico/Foreign via airmail postage. Payable in US currency. Periodicals postage paid at Park Ridge, IL and additional mailing offices. Copyright 2011 by Bev-Al Communications, Inc. Reproduction of any portion or portions of this publication is specifically prohibited without written consent. POSTMASTER: return address changes to Circulation Department, FUEL OIL NEWS, P.O. Box 2121, Skokie, IL 60076-7821 4 MARCH 2011 | FUEL OIL NEWS | www.fueloilnews.com

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