• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 6 mins PETROLEUM for humanity 
  • 1 min The Ultimate Heresy: Technology Can't Fix What's Broken
  • 2 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 1 hour Total SA In Expansion: $600 million For India's Adani Gas
  • 12 mins HK. Out. Now.
  • 2 hours China's Blueprint For Global Power
  • 14 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 12 hours Trump will capitulate on the trade war
  • 3 hours How The US Quietly Lost The 1st Amendment
  • 3 hours Who's Afraid Of Whom? - American Politics I
  • 3 mins Impeachment and Foreign Conflicts in USA Politics
  • 11 mins China 2019 - Orwell was 35 years out
  • 14 hours DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING
  • 2 hours American Politics II - The Political Implosion / America At War With Itself
Alt Text

Oil Discoveries Hit 70-Year Low

The last three years has…

Alt Text

Bearish Inventory Report Sends Oil Prices Lower

Crude oil prices fell further…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Gasoline Shortages Loom On East Coast As Colonial Pipeline Shuts Down

The destruction Hurricane Harvey leaves in its wake has prompted the shutdown of a major fuel artery to the East Coast, the Colonial pipeline. The pipeline, which has a daily capacity of over 100 million gallons of fuels, has two lines, one for gasoline and one for diesel and jet fuel. The diesel and jet fuel line shut down yesterday and the gasoline line, already operating at a reduced capacity due to lower refinery output in Texas, will be shut down today.

Gas prices, already on a skyrocket route thanks to Harvey, will rise further, especially on the East Coast, where another suspension of the Colonial pipeline caused a price spike last September on worry that a leak could leave 50 million people short of gasoline. The pipeline also shut down after a fire last year.

The Colonial operator said there are alternatives to the pipeline, such as trucks and trains, as well as barges and other pipelines. The company added that "Once Colonial is able to ensure that its facilities are safe to operate and refiners in Lake Charles and points east have the ability to move product to Colonial, our system will resume operations." 

CNBC reports that prices at the pump could rise to US$2.50 a gallon by Labor Day, from US$2.40 yesterday, after Harvey took out over 30 percent of U.S. refining capacity, or some 5 million bpd. The prospects of a fuel supply shortage dramatically increased yesterday, when the country’s largest refinery, Motiva’s Port Arthur facility, began shutting down. The refinery has a daily capacity of over 600,000 barrels of crude.

The Colonial pipeline is not the only one shuttered or operating at a reduced capacity. According to Andrew Lipow, head of Lipow Oil Associates, the price rises will be more severe east of the Rocky Mountains.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play