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 If the Jones Act were repealed, the propane could be transported to Philadelphia for only $18 a ton.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 The Jones Act, which is the most stupid law ever on books, was good for its time, but its a little out of date.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.
Southern electricians were turned away from New York Union brothers because they werent union
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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’.
Not so cheap here in central Fla $7 per gal. Robbery!
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!
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.
At one time copies were going for almost nothing.
“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.
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.
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
After which they either shout “yee-ha” and or shoots a pistol in the air.
The worst part is they must NOT have told the people in NY etal because you didnt hear ANY outrage about this.
Amen-let them freeze for a few more weeks, and someday they might learn to be careful what they wish for...
My ire is never directed at the disenfranchised conservative, trapped behind enemy lines. Blue belly elitists and RINO’s I have no sympathy for.
I love you, but expect the Getty img to be gone soon. Not my rules.
Looks like Bobby Labonte on the right...?
But I will qualify it by saying I spent most of my online time dealing with NE liberals, so my opinion has been tainted.
Did someone mention propane?
they can cuddle with their Obama phones
They can’t buy propane with an EBT card, can they?
Yep, I missed that.
I will call abuse on myself.
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