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Federal law blocking cheap Texas fuel from reaching frozen East Coast
Daily Caller ^ | 02/28/2014 | Michael Bastasch

Posted on 02/28/2014 12:53:11 PM PST by thackney

The Northeastern U.S. is struggling to keep the heat on during this year’s frigid winter which has caused a propane shortage, but a union-supported federal law is preventing abundant domestic propane supplies from getting to where consumers need it the most.

The 94-year-old Jones Act has prevented Northeasterners from getting cheap, abundant propane from Texas, instead forcing them to pay more than $100 a metric ton for propane from Europe — 4,000 miles away.

The Jones Act makes it illegal for non-U.S. ships from transporting goods between U.S. ports, and is backed by labor unions, shipyards and shipowners. The law’s proponents argue that it’s necessary for national security and economic reasons.

But try telling that to a New Englander who will spend an additional $206 more this winter for fuel than last winter, according to federal government data.

The country’s lagging pipeline infrastructure is full and there are no eligible U.S. ships to get fuel to the beleaguered Northeast – which is expected to continue seeing frigid winter conditions throughout March.

“It’s kind of a crazy thing, where we’re sending ships to Europe and then in return, at some point in time, Europe is sending propane cargoes back to us,” Peter Fasullo, an energy consultant with EnVantage Inc. told Bloomberg. “You have to think, isn’t there a more efficient way of doing this?”

Bloomberg reports that a ton of propane cost about $673 in Houston on February 24th of this year. If the Jones Act were repealed, the propane could be transported to Philadelphia for only $18 a ton. Propane was about $785 in Northwest Europe and would only cost $28 a ton to send to Philadelphia. This would cost about $121 a ton — 18 percent more than propane shipped from Texas.

“We were shipping propane out of the south side and bringing it in on the north side. It’s ridiculous,” Bill Smith, who runs a fuel trading business in Delaware, told Bloomberg. “The Jones Act, which is the most stupid law ever on books, was good for its time, but it’s a little out of date.”

The International Energy Agency estimated that repealing the Jones Act would lower gasoline prices by up to 15 cents a gallon due to the increased supply of ships able to transport gas between U.S. ports.

“The Jones Act supports U.S.-flag vessel operators, U.S. mariners, and U.S. shipyards vital to this country’s economic and national security,” Kim Strong, spokeswoman for the pro-Jones Act Maritime Administration, told Bloomberg.


TOPICS: Business/Economy; News/Current Events; US: New York; US: Pennsylvania; US: Texas
KEYWORDS: energy; jonesact; propane
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More info at:

Federal law blocking cheap Texas fuel from reaching frozen East Coast
http://fuelfix.com/blog/2014/02/28/law-blocks-cheap-texas-fuel-from-reaching-frozen-east-coast/

1 posted on 02/28/2014 12:53:12 PM PST by thackney
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To: thackney

North East coasters have little to no respect for Texas or Texans, so enjoy the cold. Maybe your great liberal God Obama will save you


2 posted on 02/28/2014 12:55:22 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: thackney

I am kinda happy when the liberal NE gets hammered with its own socialism.

Hey - someone call Joe Kennedy and have Hugo deliver some more heating oil pronto!


3 posted on 02/28/2014 12:56:58 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: thackney

Cabotage laws have their place but emergencies ain’t it.


4 posted on 02/28/2014 12:57:50 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: thackney

A liberal could screw up a wedge.

Really, extinction of that breed would greatly improve the world’s progress.

Imagine what could be done if we had leaders with measurable IQ?
Communism? Gone
Socialism? Gone
Stateism? Gone
All Kennedys? Gone
Obama? Gone, gone, gone, gone, gone, gone, gone, gone
gone, gone, gone, gone, gone....and preferably very very hot.


5 posted on 02/28/2014 1:03:07 PM PST by Da Coyote
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To: thackney

The various rules and regulations, and unions, have made it impractical for American Flagged vessels to operate. Thus, the vast majority of vessels are foreign (non-US) flagged and operate with crews from India, Pakistan, China, the Philippines, Korea, etc. The Jones Act calls for US Cargo to be carried by US flagged vessels between American ports. But, now we need propane moved, but have no US Flagged Vessels, because our oh so smart government has driven them out.


6 posted on 02/28/2014 1:03:25 PM PST by Rodentking (There is no God but Yahweh and Moses is his prophet - http://www.airpower.blogspot.com/)
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To: 12th_Monkey
Maybe your great liberal God Obama will save you

Just as many Texans voted for Obama as people from RI, MA and CT combined.

7 posted on 02/28/2014 1:04:10 PM PST by wideawake
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To: 12th_Monkey

Let the liberals freeze.


8 posted on 02/28/2014 1:04:47 PM PST by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: thackney

If that windbag King of NY, Cuomo would approve fracking, the northeast would be awash in fuel. But the King gets his orders from the environmental wackos.


9 posted on 02/28/2014 1:06:50 PM PST by kenmcg
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To: wideawake

How many Texans voted against him compared to those states?


10 posted on 02/28/2014 1:06:52 PM PST by thackney (life is fragile, handle with prayer)
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To: 2banana

I may live in Pennsylvania, but only seven states in the whole of the USA gave ObaMao a lower share of the vote than my fairly large suburban Pittsburgh county: West Virginia, Kentucky, Arkansas, Oklahoma, Wyoming, Utah and Idaho.


11 posted on 02/28/2014 1:07:24 PM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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It's February 28th

Do You Know Where Your Donation Is?


Click The Pic To Donate

Please Donate Now

12 posted on 02/28/2014 1:08:11 PM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: thackney

The bigger problem in the NE is no gas pipelines go there.
They need to have heating oil trucked in.


13 posted on 02/28/2014 1:09:55 PM PST by Zathras
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To: thackney

It should also be noted that during the extended power outages from Sandy, Southern electricians were turned away from New York Union brothers because they weren’t union.

Freeze in the dark, liberals. Conservatives, move to Texas.


14 posted on 02/28/2014 1:10:13 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: Zathras

This is propane they are talking about.


15 posted on 02/28/2014 1:11:17 PM PST by thackney (life is fragile, handle with prayer)
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To: Zathras
Not enough natural gas pipelines, but they do have a few.


16 posted on 02/28/2014 1:13:23 PM PST by thackney (life is fragile, handle with prayer)
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To: wideawake

true, but they don’t hold the majority......yet.


17 posted on 02/28/2014 1:17:19 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: kenmcg

If that windbag King of NY, Cuomo would approve fracking, the northeast would be awash in fuel.
***********************************
And my relatives upstate would be rich overnight leasing their farmland.


18 posted on 02/28/2014 1:17:28 PM PST by Neidermeyer (I used to be disgusted , now I try to be amused.)
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To: wally_bert

I suggest they burn dreams of my father and whatever POS he had ghost written. I hear tell dried up $h!t burns very well


19 posted on 02/28/2014 1:18:29 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: thackney

HAHAHAHAHAHAA.

HAHAHAHAHAHAHA.

I bet they can get Venezualan fuel.

HAHAHAHA. I know a lot of people are hurting from the cold but I find a joy when liberals are hurt by their favorite regulations.


20 posted on 02/28/2014 1:20:05 PM PST by Organic Panic
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To: txhurl

Southern electricians were turned away from New York Union brothers because they weren’t union
= = = = = = = = = = = = = = = =
The worst part is they must NOT have told the people in NY etal because you didn’t hear ANY outrage about this.

This is usually the sort of thing that wakes people up.

You can blame the Unions etc but it also took the pols to pass laws that allow BS like this to continue.

Remember back when the Pols and Oil Companies were telling us that the EPA rules kept the price of gasoline high because of all the different blends that were required in different parts of the country.

Think it was “W” that during a ‘gas crisis’ suspended the different blends for the areas hardest hit. (Don’t think he was going to mess with CA on this one).

Anyway, it got set up, and when it came time to come into being, the Oil Companies said something along the lines of ‘don’t expect a lot here, SOMETHING has to replace the ‘special blend’.

In the same ‘crisis’ I think it was MD that had raised the gas tax four or five cents simply because “There had not been a raise for a few years”.

When the so called ‘crisis’ hit, it was suggested that the ‘new tax’ be rescinded ‘for the duration’ and the basic response for the Pols was - ‘Why bother? 4 cents one way or the other won’t really matter - when suggested it be ‘given back’ the pols still said no, saying that 4 cents a gallon in YOUR pocket isn’t all that much’.


21 posted on 02/28/2014 1:22:55 PM PST by xrmusn (6/98 --When you have them by the short hairs, the minds and hearts soon follow.)
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cheap, abundant propane from Texas

Not so cheap here in central Fla $7 per gal. Robbery!

22 posted on 02/28/2014 1:23:00 PM PST by Dedbone
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To: Da Coyote

Boy do I agree with you!I lived in Boston for 30 years and then moved to Dallas in 2010.The 2 cities are night and day and Texas is really a great place for business!


23 posted on 02/28/2014 1:27:41 PM PST by plainshame
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To: 12th_Monkey

I’m a Northeasterner, don’t tar us all with the same brush. I find it exceptionally strange that with all the natural gas this country produces that we don’t have ships purpose built for carrying it. I’m sure there are politcal reasons why this is so.


24 posted on 02/28/2014 1:29:17 PM PST by Amberdawn
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To: 12th_Monkey

At one time copies were going for almost nothing.


25 posted on 02/28/2014 1:35:01 PM PST by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: 12th_Monkey

“North East coasters have little to no respect for Texas or Texans,”

Really? I’ve lived in The Northeast for 81 years and was not aware of that.

Stereotype much?

.


26 posted on 02/28/2014 1:41:35 PM PST by Mears
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To: Amberdawn
I find it exceptionally strange that with all the natural gas this country produces that we don’t have ships purpose built for carrying it.

That would be an LNG ship. You need an export terminal to freeze the methane down to -260°F and the cryogenic equipment to handle it. Then you need an LNG import terminal to receive it and re-vaporize it.

We have some LNG import terminals, including on the East Coast, in spite of outrage and lies against them when they were proposed and built.

Since the LNG export was only recently permitted, and only a little bit recently, it will take a few years to complete the building of them on the Gulf Coast. Billions of dollars are being spent to complete them.

27 posted on 02/28/2014 1:48:04 PM PST by thackney (life is fragile, handle with prayer)
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To: Mears

I see it quite a bit from TV shows.

Texans are routine portrayed in media that originates from both coasts as stupid, slow, superstitious, anti-jewish, racist people tha’ tallks wid a he-vey con-staaant
tek-sas acts-ant.

After which they either shout “yee-ha” and or shoots a pistol in the air.


28 posted on 02/28/2014 1:52:39 PM PST by VanDeKoik
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To: xrmusn; Arrowhead1952

The worst part is they must NOT have told the people in NY etal because you didn’t hear ANY outrage about this.


The PTB are very careful to avoid local outrage. I read horrific happenings here in Austin on FR, not a stitch from the local media.


29 posted on 02/28/2014 1:55:59 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: 12th_Monkey

Amen-let them freeze for a few more weeks, and someday they might learn to be careful what they wish for...


30 posted on 02/28/2014 2:02:24 PM PST by Texan5 (" You've got to saddle up your boys, you've got to draw a hard line"...)
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Comment #31 Removed by Moderator

To: Amberdawn

My ire is never directed at the disenfranchised conservative, trapped behind enemy lines. Blue belly elitists and RINO’s I have no sympathy for.


32 posted on 02/28/2014 2:04:05 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: thackney

I love you, but expect the Getty img to be gone soon. Not my rules.


33 posted on 02/28/2014 2:06:48 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: thackney

Looks like Bobby Labonte on the right...?


34 posted on 02/28/2014 2:07:05 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Amberdawn
I’m a Northeasterner, don’t tar us all with the same brush. I find it exceptionally strange that with all the natural gas this country produces that we don’t have ships purpose built for carrying it. I’m sure there are politcal reasons why this is so.

Such ships do exist, called LNG (liquified natural gas) tankers. To load one of these tankers, you need a terminal designed for export. Most, if not all of the LNG terminals built in the U.S. so far were designed for importing, not exporting LNG. (They were built before the shale gas revolution of recent years.) There are projects underway to retrofit some of these import terminals so they can be used to export LNG, but then, you'd need an import terminal in the Northeast to take the product. And the Northeast is a place where such projects are going to run into the NIMBY and BANANA issues.

For safely transporting large amounts of natural gas, it's hard to beat pipelines. But my experience has been that Northeasterners don't like pipelines much either. It's those NIMBY and BANANA things again.

That doesn't leave much in the way of alternatives. Here in Texas, we could load up a bunch of tank trucks with CNG (compressed natural gas) and send them your way. But then you'd have thousands of rolling motorized bombs driven by crazy people from Texas on your highways, and the transport capacity would still be limited. So that's probably out.

So now we're down to transporting the natural gas via hot-air balloons. Which could probably work, except you tend to lose a lot of the gas in transit. ;-)
35 posted on 02/28/2014 2:07:50 PM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: Mears

Experience.

But I will qualify it by saying I spent most of my online time dealing with NE liberals, so my opinion has been tainted.


36 posted on 02/28/2014 2:07:59 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: thackney

Did someone mention propane?

37 posted on 02/28/2014 2:09:12 PM PST by USFRIENDINVICTORIA
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To: Texan5

they can cuddle with their Obama phones


38 posted on 02/28/2014 2:11:26 PM PST by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: 12th_Monkey

They can’t buy propane with an EBT card, can they?


39 posted on 02/28/2014 2:15:14 PM PST by Texan5 (" You've got to saddle up your boys, you've got to draw a hard line"...)
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To: txhurl

Yep, I missed that.

I will call abuse on myself.


40 posted on 02/28/2014 2:17:33 PM PST by thackney (life is fragile, handle with prayer)
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To: thackney

I actually like the photo.

Watch for some very destructive moves from Perry against the RATS and Commies soon.


41 posted on 02/28/2014 2:20:24 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: 2banana
Hey - someone call Joe Kennedy and have Hugo deliver some more heating oil pronto!

Regarding Hugo,


42 posted on 02/28/2014 2:21:13 PM PST by Night Hides Not (For every Ted Cruz we send to DC, I can endure 2-3 "unviable" candidates that beat incumbents.)
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To: wally_bert
Let the liberals freeze.

Just being a little simple no? How do you manage to save all the conservatives or even libertarians while just targeting the liberals?

43 posted on 02/28/2014 2:26:03 PM PST by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: Night Hides Not

44 posted on 02/28/2014 2:28:15 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: txhurl
I do to. It is fun and that is a big part of Texas.

It was a significant event, a kickoff for a NASCAR weekend race. I searched around and found someone else's photo.


45 posted on 02/28/2014 2:28:22 PM PST by thackney (life is fragile, handle with prayer)
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To: Milton Miteybad

It sounds strange that America can go to the moon but we can’t get natural gas to New England.


46 posted on 02/28/2014 2:31:18 PM PST by plainshame
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To: thackney

Yes!


47 posted on 02/28/2014 2:36:10 PM PST by txhurl (Young the Giant, 'It's About Time')
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To: plainshame
Yes, it is strange.

Yet, here we are.
48 posted on 02/28/2014 2:38:56 PM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: thackney

During the construction of the Trans-Alaska Pipeline in the 70’s, we had some interesting bumper stickers. The best one was: LET THE BASTARDS FREEZE IN THE DARK. We also had a lot of trouble with the Jones Act, and another bumper sticker that was prominent at the time was “SINK THE JONES ACT” What goes around comes around...


49 posted on 02/28/2014 2:48:41 PM PST by redhead (NO GROUND TO THE DEVIL! Remember BENGHAZI!! Use Weaponized Prayer)
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To: 12th_Monkey

Right. I heard the same thing 20-odd years ago when there was a really cold winter: Let the Yankees freeze. Thanks.


50 posted on 02/28/2014 4:13:23 PM PST by pa_dweller (Extremist tea-party-driven hostage-taking legislative arsonist without a life)
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