Feds: More Gulf Coast fuel needed to supply Northeast

Fuel Fix ^ | December 28, 2011 | Simone Sebastian

[thackney]

Larger shipments of gasoline and diesel from the Gulf Coast are needed to offset planned closures of three major refineries in the Northeast, according to a new federal report.

Northeastern states could experience “spot shortages with price hikes” for gasoline and other fuels as the region faces the idling of three critical refineries in Pennsylvania, the U.S. Energy Information Administration concluded in a recent report.

“The Gulf Coast is likely to be a significant alternate supplier,” the report notes, specifying the Colonial Pipeline as a main transport route.

“Even so, pipeline capacity will still be insufficient to make up the entire lost production volume,” the EIA forewarned.

Sunoco announced this month that it will idle operation of its Marcus Hook refinery in Pennsylvania. The announcement came two months after ConocoPhillips decided to take offline its Trainer, Pa. refinery and prepare the facilities, associated pipelines and terminals for sale.

If Sunoco moves forward with plans take its Philadelphia refinery offline, too, the nation’s populous Northeast region will lose half of its total refining capacity, according to the U.S. Energy Information Administration.

The impact on refining capacity and infrastructure could stress the regional supply of gasoline, jet fuel and ultra-low sulfur diesel, the EIA concluded in its report.

The U.S. refining industry, and Northeastern refiners in particular, are suffering from stagnating demand and competition from imports. Northeastern refineries supply 40 percent of the region’s gasoline needs, according to the EIA, with the rest coming from imports or piped in from the Gulf Coast.

As more Northeast refiners go offline — Philadelphia-based Sunoco, the region’s dominant refiner, has announced that it’s getting out of the refining business all together – the Gulf Coast will become and even more important supplier, the report noted.

The Colonial Pipeline, a main artery for transporting gasoline and other refined products from Texas up along the East Coast, is expanding its capacity in part to respond to closed refineries in the Northeast.

Additional supply could come from imports, beefed up production at remaining Northeast refiners and small rail shipments from Midwest refiners, the EIA said.

[thackney]

For the US Northeast, Gasoline foreign imports come mostly from Nigeria, Venezuela, Canada, Finland, Netherlands, Norway, Spain, UK and the Virgin Islands.

http://www.eia.gov/dnav/pet/pet_move_impcp_a2_r10_epobg_im0_mbblpd_m.htm

[anoldafvet]

Last Tuesday the price here was $2.81/gallon at 2:30 PM. At 10:00 PM it was $3.39/gallon. That’s $.58 a gallon in less than 8 hours.

[TLI]

Larger shipments of gasoline and diesel from the Gulf Coast are needed to offset planned closures of three major refineries in the Northeast, according to a new federal report.

Northeastern states could experience “spot shortages with price hikes” for gasoline and other fuels as the region faces the idling of three critical refineries in Pennsylvania, the U.S. Energy Information Administration concluded in a recent report.

“The Gulf Coast is likely to be a significant alternate supplier,” the report notes, specifying the Colonial Pipeline as a main transport route.

The Gulf Coast eh? The Gulfff Coassst...

The Gullllfff, hummm.

Yeah, I know that place, but they seem to be having a bit of an issue with some federal government bureaucracy not issuing drilling permits to get the oil TO the refineries to begin with. Oil doesn't just jump out of the ground all by itself you know.

Which one was that again? Oh, it will come to me in a minute or two.

And all that extra activity is going to require electricity. Lots and lots of electricity. I recall another issue with some federal government bureaucracy causing a lot of power plants in that area to just close.

Which one was that again? Oh, it will come to me in a minute or two.

And now that they mention it, those refineries themselves were having problems with some outfit in the federal government. It seems like they were being told to do a bunch of stuff that was way too expensive and, well, some of THOSE refineries might have to close. That federal government bureaucracy was being very insistent.

Which one was that again? Oh, it will come to me in a minute or two.

And speaking of supply, wasn't there suppose to be a really cool pipeline to get a LOT of crude oil down to those very same GULF COAST refineries? Yeah, all the way from Canada right? Had some problem with a federal government bureaucracy wanting additional environmental studies in addition to the three years of studies regarding the other 60 pipelines-of-death along that route.

Which one was that again? Oh, it will come to me in a minute or two.

I don't know about all this, it sounds pretty "risky." Those folks up in the nor-east might just have to "tighten their belts" and "check that tire pressure" as prices in that area "necessarily skyrocket."

But I do like the cool graphics they have!

Here is the proposed route of the line going to the area in need...

Here is one of those cool election maps...

Wow, look at all those BLUE States. Right where they all want the benevolent pipeline-of-prosperity to go.

But wait, look at this map of where the evil, leaking, stinky, Keystone pipeline-of-death will go!

Wow, look at all those RED states!

No pipeline for you, all you nasty non-bammy voters!

.

[mcshot]

They stop a pipeline and three refineries are closed. We are becoming more vulnerable but that seems to be 0’s plan.