• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 15 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 day The Truth about Chinese and Indian Engineering
  • 1 hour Why Oil could hit $100
  • 16 hours The World is Facing a Solar Panel Waste Problem
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 46 mins China's impending economic meltdown
  • 8 hours Pompeo upsets China; oil & gas prices to fall
  • 2 mins Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 5 hours Open letter from Politico about US-russian relations
  • 3 hours Brent above $45. Holding breath for $50??
  • 1 day Sell Natural Gas Benefits to Grow the Market!
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 1 day Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
Russian Oil Output Falls 16% In July

Russian Oil Output Falls 16% In July

Russian oil companies pumped 16…

Oil Buyers Profit From A Wave Of Cheap Fuel

Oil Buyers Profit From A Wave Of Cheap Fuel

Hedge funds and institutional oil…

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