I found this on Hyatt's board (sorry if this has already been posted):

(for educational purposes only)

www.canoe.ca/MoneyOil/mw_oilnews13html

HEAT USA Issues Crisis Alert to Heating Oil Consumers By KERM YERMAN

Home heating oil consumers, already reeling from an increase in wholesale prices to $1.40 on January 21, up 67 cents from January 14, are now facing the prospect of severe shortages. In response to this impending crisis, HEAT USA, the country's largest fuel-buying cooperative, is calling upon consumers to demand that the President take immediate action to release oil from the Strategic Petroleum Reserve (SPR). The cooperative has converted its toll-free telephone number 1-800-660-4328 into a consumer information hotline.

Heating oil inventories in the New York metro area and throughout the Northeast are at dangerously low levels caused by the arrival of cold weather combined with short-sighted "just-in-time" inventory systems used by major oil refiners. Also,OPEC's policy of restraining oil production in order to drive up crude oil prices has depleted petroleum reserves around the world.

The sudden depletion of oil inventories in the Northeast was precipitated by the natural gas utilities forcing their commercial 'interruptible' customers to switch fuels from natural gas to heating oil because of shortages in natural gas. The utilities also switched many electricity generating plants from gas to oil. This is standard practice whenever the utilities are unable to meet the demand for natural gas, which typically occurs whentemperatures drop below 20 degrees.

"Our phones are ringing off the hook with calls from oil dealers and our members," said Tim Irving, Executive Director, HEAT USA. "We've haven't seen a situation like this in 15 years and we need to act fast to protect consumers. Prices have increased over 90% this week and there is little inventory available. HEAT USA is taking the lead to make sure consumers know how to protect themselves and to make sure this situation doesn't happen again. Unless the government takes immediate action and releases oil from the SPR, consumers are facing the real danger of being unable to heat their homes."

snip

-- Mello1 (Mello1@ix.netcom.com), January 25, 2000

Answers

The strategic petroleum reserve (SPR) contains CRUDE oil...so it will take time to get anything through the process and out to consumers...

-- Mad Monk (madmonk@hawaiian.net), January 25, 2000.

Good find Mello1. This is the first I've read of a shortage of natural gas. Any other links for news on gas shortages?

-- slza (slzattas@erols.com), January 25, 2000.

I thought some areas were seeing higher prices of diesel due to replacement for heating oil shortages. Let's play chase the available fuel.

-- Squid (ItsDark@down.here), January 27, 2000.