• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 19 hours Everything you think you know about economics is WRONG!
  • 1 day Global Debt Worries. How Will This End?
  • 16 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 28 mins Natural Gas
  • 3 hours USA v China. Which is 'best'?
  • 3 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 1 day Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 2 days My interview on PDVSA Petrocaribe and corruption
  • 2 hours Aramco Raises $25.6B in World's Biggest IPO
  • 4 hours Winter Storms Hitting Continental US
  • 2 days Quotes from the Widowmaker
  • 1 day Tesla Launches Faster Third Generation Supercharger
Alt Text

Will The OPEC Meeting Yield A Bullish Surprise?

Forecasters are warning of a…

Alt Text

OPEC+ Agrees To Deeper Output Cuts

The OPEC meeting ended with…

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