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Will Ruptured Gas Pipeline Affect Diesel Prices?
While the stories on this week’s ruptured pipeline are stating that it’s adversely affect gasoline prices and availablity, has anyone in the Southeast noticed a shortage of Diesel?
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16 Replies
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Let’s be serious for a second. This is a made to order excuse to raise all fuel prices in North America. IMHO
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Al, I have no doubt this will increase prices. I’m simply wondering that since, based on what I read in the story linked above, that gasoline is being diverted to the smaller diesel pipeline that runs parallel to the ruptured gas lines. Will that will affect diesel supplies?
The only good news is for those who are currently shopping for a gasoline powered RV in the Southeast as the prices probably just got lower due to the shortagages. Yeah, that has no effect for the PC Members, but it probably made the folks at Tesla very happy.
P.S. Contratlations on the new bus AL! She’s a beauty!
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Shouldn’t this be only temporary? The jump in fuel prices should abate once the pipeline is repaired. I hope nobody makes a buy (or sell) decision based on this event.
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I drove from Aiken, SC to Auburn, Al yesterday. In Aiken I noticed the price jumped 12 cents to $1.999 at some stations but I still got 2 fiilups at $1.769 before leaving as the truck and car were both empty. Diesel was still about $2.15. We have some of the lowest fuel prices in the southeast feed by low transport cost since we get fuel out of the spur pipeline that terminates in North Augusta and low state fuel tax.
when I got to Auburn I filled at $1.899 and saw no signs of short supply across Georgia.
This should pass pass quickly with no real impact.
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Has anyone actually seen gas spilling from this “pipeline”? I call bullshit! Its all for profits!
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There are a few Stations in the Atlanta metro that are out of all grades. Lets see what tomorrow brings At the stations that did have gas it went from 2.259 to 2.399.
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Guys,
On the subject of the price of diesel and gasoline based on an incident…. I am not a guru but do understand the marketplace for oil and gas products as many of our members do as well.
For a long time, the refineries on the Gulf Coast have been rigged to handle higher sulphur contented hydrocarbons…. billions and billions have been spent to expand the refinery capabilities on this coast… a great deal of this capacity has been devoted to producing diesel and gasoline. As the inventories for such products increased to unforeseen levels ( as we hit the $50 mark on oil), the refineries cut back on their oil purchases of oil thus reducing demand and creating an enviironment for lower oil prices… at least to the extent that these refinery purchases could effect the world-wide prices….and with the lower prices…. their spreads became very, very thin as the price of oil declined. You can expect that as the glut of gasoline and diesel inventories abate, that the prices will firm.
So, as an overview of a huge, complicated, world-wide interlated industry…. when we look at the various markets in where ever we may be, any temporary price movements out of the ordinary should be just that….very temporary. I am the first to say that there are those who would seek to capitalize on any adverse news …but, after a brief interlude, considering the transportation capabilities in place throughout the USA…. where “excess profits” exists, capital will be deployed in a heart beat to rectify the situation… Where we will see an increasing price could well be as the refineries try to again buy oil for refining and try to monitor thier gas and diesel inventories more effectively to protect their spreads…
All of this is to say that what has been said is correct… it’s temporary and from my view, I would encourage that no decision should be made or based on the information presented….. it is a much larger market place than an exclusive area…
Others will chime in…
Respectfully,
Pres
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Does the Pope shit in the woods?
Not going to say this was a manufactured “event” but like all other events that have any level (very little to significant) interruption in the refinery process/supply chain, the price will increase.
The best example of this was Katrina.
For years any little event that took place on the west coast, the price of fuel sky rocketed. Excuses were always the same. California is special, they refine their own fuels and anything that interrupts the refineries in California will cause a decrease in supply which causes an increase in prices at the pump. Can’t get fuel from anywhere else because we are special and no where else in the world do they produce special fuel to meet our requirements.
Katrina happens and within HOURS the prices in California start to go up. Reason? Refineries in the gulf are affected and therefor there is a reduction in supply.
Wait, I thought we were special and only events in California affected our supply?
Even the cost for Vaseline went up, which made the end result hurt even more 🙁
Good thing I just filled up in Lenoir City TN for $1.92 a gallon. Should get me down to Florida without needing to fill up.
I will say that in East TN, we are not seeing any major changes as of yet. Seeing diesel and gas as low as $1.98 (most around $25-$2.10). However talking to a friend of mine who is down in the ATL, they are saying stations are out of fuel and prices are way up where there is fuel.
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You won’t like FL Charles, yesterday I filled up at Loves Polk City for 2.48.
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How soon we forget….2 summers ago would have been overjoyed to pay 2.48! Geo.
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Was seeing diesel in that range all summer long up in the north west. DIdnt really see it below $2.35 till we got into TN.
And yes, three summers ago was a much more expensive drive then the past two summers. Going even a little further back from that, even filling up the diesel truck would come close to $1000 on a regular basis.
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Here in NC we have plenty of Diesel but the mom and pop stores are just completely out and even some QT, Hess and Sheets. Out of Gasoline. Filled up today at 27 Diesel.
Shortage is real here and word is a week or longer before the flow restored.
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I’m in Asheville and hearing about a few fuel stations with ‘no gas’ reported, I decided to run down to the T/A station down the street and was able to pull right in to top off the Honda at $2.29 gal. for regular. My neighbor at the RV park said that the Exxon down the street and Sunoco across from the T/A were showing ‘no gas’ placards on the pumps. I didn’t check it personally as he told me the T/A still had fuel so I went directly there.
Our group will be going down to Lake Toxaway and I didn’t know what the fuel situation would be like there in the next couple of days. Now, I should be good for a week with the Honda and 1,500+ miles on the Liberty.
The ‘Elegant Lady’ is full (230 gallons) and now the Honda is full (15 gallons)…. My understanding is that diesel does not have a ‘flow’ problem.
Mark
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This morning’s Wall Street Journal was giving some perspective on the “Gas Situation.” Realizing that any area can have “shortages” contrived or otherwise, they reported that the average increase in gasoline from Sunday was 7.3 cents and an increase of 25.2 cents over the seven day period in Georgia. New shipments of fuel and another emergency pipeline was being put in place. Certainly, there were situations that make these look tame. However, it is against the law to “improperly take advantage” of the consumer in such circumstances //// yet it is up to the watchdogs to see that those who do so are prosecuted.
Gas futures rose 7.4 % even as the price of oil fell somewhat.
It is easy to agree about the comments made regarding the West Coast and “certain” shortages that can occur in many products due to accessability of the product that must flow through the state’s unionized ports. The West Coast has great hydrocarbon production (Occidental, etc.) yet there can be bottlenecks that occur very quickly.
As an example, the Pinedale Anticline from the Pinedale, WY area from which we are producers, we understand provides over 35% of the natural gas for Los Angeles…. it basically flows through one pipeline built by Warren Buffet… if that gets disrupted, it would have a dramatic effect short term if the city and area do not have reserves sufficient to meet the demand.
Hoping that this situation gets remedied quickly and that all do not have any significant difficulties…
Pres
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According to the colonial pipeline press release, the bypass line is physically complete and is being tested. they expect to re-open line 1 Wed. Sept 21. It will liely take till next week to get all the stations back to normal.
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