Skip to comments.Federal law blocking cheap Texas fuel from reaching frozen East Coast
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 years 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 laws proponents argue that its 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 countrys 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.
Its kind of a crazy thing, where were 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, isnt 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 If the Jones Act were repealed, the propane could be transported to Philadelphia for only $18 a ton.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. Its 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 The Jones Act, which is the most stupid law ever on books, was good for its time, but its a little out of date.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 countrys economic and national security, Kim Strong, spokeswoman for the pro-Jones Act Maritime Administration, told Bloomberg.
Federal law blocking cheap Texas fuel from reaching frozen East Coast
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
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!
Cabotage laws have their place but emergencies ain’t it.
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?
All Kennedys? Gone
Obama? Gone, gone, gone, gone, gone, gone, gone, gone
gone, gone, gone, gone, gone....and preferably very very hot.
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.
Just as many Texans voted for Obama as people from RI, MA and CT combined.
Let the liberals freeze.
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.
How many Texans voted against him compared to those states?
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.
The bigger problem in the NE is no gas pipelines go there.
They need to have heating oil trucked in.
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.
This is propane they are talking about.
true, but they don’t hold the majority......yet.
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.
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
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.