Shortage makes it hard to find gasoline at any price

The Lincoln Journal ^ | October 2, 2008 | The Lincoln Journal

[thackney]

For three weeks now, drivers in Lincoln County and other areas of Georgia have been chasing an elusive commodity: gasoline - - at any price.

It's here one day, and gone the next, varying grades at prices that seem to change hourly.

State and industry officials say the problem started with the shutdown of oil platforms and refineries in the Gulf of Mexico in preparation for Hurricane Ike and the subsequent shutdown of the two pipelines bringing the product to the Southeast.

The refineries are currently back online, but there is little product because it take time to produce and ship the gasoline and diesel fuel and demand is so incredibly high.

In his comments, Neal Dolvin, plant manager for the Willis Oil Company in Union Point, Georgia, stated, "We have been told things should stabilize in about a week - - that shipments should be coming into the terminals in Athens and Doraville, where we pick up our product. We're getting a little product now but not anything like we need."

On Monday, September 29, Ernie Guthrie, owner of the Fast Times Convenience Store, said he had no gasoline at the present time but that a tanker truck, which has a capacity of 9,000 gallons of fuel, had just delivered 1,000 gallons of diesel.

"What we need is four full tankerloads of gas, on-road diesel, and offroad diesel to get our inventory back to where it was," said Guthrie. "I don't know how long it will take the trucking business to catch up on deliveries. The best information I can get is it will take a couple of weeks for things to get back to normal.

"One thing that has surprised me though is the fact that the shortage hasn't affected prices that much," he continued. "Earlier today, oil dropped $5 a barrel to $101.50."

On the other hand, Guthrie indicated that the gasoline shortage has affected his inside sales by half. "It's not going to be a quick fix."

According to Roby Seymour, director of the Lincoln County Department of Public Works, "We haven't had any trouble getting gas or diesel fuel because due to our emergency management facility and the school system, we operate at a higher priority level."

He noted that the county's diesel tank was empty for three hours last week, but the situation was quickly rectified.

As for regular drivers, there are steps they can take to help positively deal with the gas shortage. These include:

.. Do not over-react and buy all the gas you can, every chance you get.

"When shipments do arrive, everybody gets in a panic to fill up, which drains the supply," said Bob Marrett of Thomson Gas and Oil. "People just need to buy at their regular pace and fill up when they're almost out. This would allow deliveries to catch up with demand."

He explained: "If that extra half tank of gas is in your tank rather than the gas station's, multiplied by a few thousand drivers, that's where the gas shortage is."

.. Rapid accelerating, tailgating, and waiting until the last minute to slow down can reduce fuel economy.

.. Under-inflated tires can reduce fuel economy by as much as two percent per pound of pressure below the recommended level.

.. Don't top off the gas tank and tighten the cap.

.. Don't accelerate up hill. Build up speed before an incline and then maintain it on the way up. Coast on the way down for additional fuel economy.

.. Loading a car's roof rack can reduce mileage 10 to 20 percent in highway driving because of the increased wind resistance.

.. Try carpooling.

.. Go the speed limit, and use cruise control. A motorist can get up to 20 percent more mileage traveling 55 mph than 70 mph.

.. Remove junk from the trunk. Added weight in one's vehicle affects fuel economy.

The comments below reflect how the shortage is impacting the local populace:

Al Bean: "The lack of diesel fuel is creating a financial burden for the forestry industry in Lincoln County, along with all of the other companies that require diesel to do business. We should do everything in our power to stay in contact with our legislators to resolve this problem as soon as possible."

Annette Tutt: "I would never have thought there would be a time when we couldn't get gas in Lincolnton, but it has happened. I just don't go very far."

J.B. Mathews: "I plan my trips more carefully, consolidating them whenever I can. I think it's an expensive burden for lots of folks, but it's a market condition that will hopefully be corrected as the petroleum industry in the Gulf recovers from the hurricane."

Emma Smith: "I think the prices are awful, especially for people who were already struggling before the shortage and for those who have to visit the doctor for treatment on a regular basis. It's also hard on volunteer drivers, who really want to help."

Nelson Brooks: "It's making me talk to people on the phone a lot more, and I combine my personal trips to Augusta, Washington, and Athens. In fact, I walked to church Sunday."

Judy Jordan: "It has already affected my business — people don't have as much money to spend because of the high gas prices. Also, I forget that I need to get gas and then I get stranded. I'm used to riding on empty — it's a bad habit that I will definitely have to break."

[thackney]

It has been projected that the gas shortage that has plagued the Southeast will come to an end in another week or two. Sights like this have been all too common in Lincolnton and the surrounding areas.

[Slapshot68]

It’s so weird. Up here in Ocean City MD, gas has dropped to $3.35/gal.

[DonaldC]

Amazing what our nation has come to.

[Tallguy]

Is Georgia another one of those states with “anti-price-gouging” laws? Does it affect refined petroleum products? Just wondering.

[thackney]

Stations here in the Houston area are getting in the $3.teens One at $3.15. Many are still higher, the spread is rather amazing.

http://www.houstongasprices.com/

[ClearCase_guy]

I don't understand. There are tanker trucks delivering gas to nearby states that don't have a shortage. If the tankers were to divert to Georgia, and offer to sell their gas at twice the price, there wouldn't be so much of a shortage. Would that be allowed?

Usually, a "shortage" is caused by "price controls" at some level in the supply chain.

[PapaBear3625]

The EPA and various states have mandated various custom blends for various areas. It does no good for Georgia if the refineries are back online if the refineries can’t get the particular custom blend to Georgia.

[ClearCase_guy]

Thanks. The article skates around that part of the issue. The problem is government regulation — I wish they’d come out and say so.

[stuartcr]

Couldn’t they change their mandates for fuel blends?

[sigSEGV]

Here’s a good post regarding the situation in Atlanta.

http://mbm.blogs.com/team_weblog/2008/10/ok-i-made-a-bad.html

[PapaBear3625]

A bureaucrat waive an environmental regulation?

[stuartcr]

Yeah, silly me...

[OrangeDaisy]

We had a shortage in Nashville from the time Ike hit until Friday / Saturday of last week. I got so tired of hearing the media and the government blame the drivers for the shortage. They continuously said we were topping off our gas tanks and causing a “panic.” The night I waited in line 30 minutes, I had 1/4 of a tank. Two cars in front of me ran out of gas, and people around me at the pumps were putting $70 worth in their tanks. That hardly seems like unrestained topping off to me. When only 20% of the gas stations have gas, I don’t see how you can blame the sheeple!

What I don’t understand is why Atlanta’s shortage came after ours. Was their pipeline at full capacity after Ike and now suddenly it isn’t? Nashville gets its gas from the Colonial Pipeline. All the stations now seem to have gas, even Mapco, who did not have a single drop from Ike until a couple of days ago.

[thackney]

where federal clean air mandates dictate what types of gasoline (called boutique fuels) can be sold where. Because of its air pollution problems, only a special boutique fuel can be sold in Atlanta.

This is not the problem.

Fact Sheet: Increasing Fuel Supply in the Aftermath of Hurricanes Gustav and Ike
http://www.whitehouse.gov/news/releases/2008/09/20080915-7.html

The EPA has waived certain fuel requirements in order to make it easier to use the supplies we have domestically and increase flexibility in what we can import. This waives requirements for gasoline sold or distributed in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, part of Ohio, South Carolina, Tennessee, Texas, and Virginia.

[thackney]

Was their pipeline at full capacity after Ike and now suddenly it isn’t? Nashville gets its gas from the Colonial Pipeline.

Atlanta has the same pipeline. There is only one main pipeline the the Southeast.

[N. Theknow]

I don't understand. There are tanker trucks delivering gas to nearby states that don't have a shortage. If the tankers were to divert to Georgia, and offer to sell their gas at twice the price, there wouldn't be so much of a shortage. Would that be allowed?

Nope.

Different blends for different states.

Thanks to the EPA blends for one state cannot be sold in another state.

Shhhh.

Don't tell them that you fill up in one state and drive in other states.

Apparently the geniuses put in place by Clinton haven't thought about how to screw the consumers that do that implement that into the equation.

[PapaBear3625]

The EPA waiver for Georgia was not applied for by Georgia's governor until Sept 22 (granted the next day).

And it takes a bit of time, once the waiver exists and has been communicated to wholesalers, before gas supplies can be arranged for and delivered.

[thackney]

I see, there were multiple restriction, not all waved at the same time. Thanks for the info.

Here is the EPA announcement that waved requirements including Georgia 11 days earlier.

EPA Approves Hurricane-Related Fuel Waiver for Nine Southeast States
http://yosemite.epa.gov/opa/admpress.nsf/324e040292e1e51f85257359003f533a/0aa422d2be82847e852574c1007c8dbc!OpenDocument
Release date: 09/11/2008

Due to the continuing effects of storms in the Gulf and the pending landfall of Hurricane Ike, EPA is exercising its authority under the Clean Air Act to temporarily waive certain federal gasoline requirements in nine southeastern states.

Today’s action will waive certain Clean Air Act requirements for gasoline sold or distributed in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas to allow the early use of “winter fuel” throughout this region.

- - - - -

EPA Approves Hurricane-Related Waiver for Georgia
http://yosemite.epa.gov/opa/admpress.nsf/324e040292e1e51f85257359003f533a/56ab1ccf827a6a93852574cd007d94bd!OpenDocument
Release date: 09/23/2008

As a result of the disruption in the supply of fuel caused by Hurricanes Gustav and Ike, EPA has exercised its authority under the Clean Air Act to temporarily waive certain Georgia-specific requirements approved under the Clean Air Act for gasoline in 45 counties in and around Atlanta.

The waiver will allow for the importation, distribution and sale of gasoline that does not meet low-sulfur gasoline requirements contained in Georgia’s federally-approved state implementation plan. Also waived are certain testing, reporting and recordkeeping requirements applicable to new importers of gasoline to the Atlanta area under Georgia’s state plan. This waiver does not change the requirement that gasoline imported, sold or distributed in this area meet federal gasoline sulfur requirements.

- - - - - - - - -

Others listed at:

EPA - News Releases - Emergency Response
http://yosemite.epa.gov/opa/admpress.nsf/Press%20Releases%20-%20Emergency%20Response!OpenView

[thackney]

Found a better summary page for fuel waivers. Easier to find each area.

Fuel Waiver Response 2008
http://www.epa.gov/compliance/civil/caa/fuelwaivers/#alabama

[safisoft]

They continuously said we were topping off our gas tanks and causing a “panic.”

It is the same socialist answer every time. It is bogus. The problem is a supply problem - not a consumer response problem. The "topping off" issue is only true in the first few days of a shortage. After that, it all boils down to usage (NOT storage in drivers' tanks) and the actual supply. PERIOD. No one waits in line to add a few gallons.