Major Gasoline Squeeze: Colonial Pipeline Shutting Down; Explorer Already Off Line
"This is going to be the worst thing the US has seen in decades from an energy standpoint."
The largest US fuel pipeline is shutting down because of problems with its supply points, and because of a lack of supply from refiners.
Colonial Pipeline Co. said Wednesday night its shut off its main diesel and jet fuel line -- and Colonial's gasoline line is shutting down some time on Thursday because of supply point outages coupled with short supply because of Hurricane Harvey-related refinery closures.
The company said it's launching an inspection and once it's sure its facilities are safe -- and refiners from Corpus Christi east to Lake Charles have refined product ready to fuel the system -- it will resume operations.
This, in addition to Wednesday's announced closure of the Explorer Pipeline's main line, which is also facing supply shortages.
Reuters on Wednesday quoted an unnamed East Coast gasoline market source as saying, "Imports can't make up for this ... This is going to be the worst thing the US has seen in decades from an energy standpoint."
The Explorer delivers fuel from Houston to Tulsa, Oklahoma.
The Colonial delivers from the Gulf Coast to the East Coast. The 5,500 mile line starts at Houston and ends at New York harbor.
The shutdown of both removes more than three-and-a-half million barrels gasoline from the Gulf Coast refinery delivery system at a time when East Coast refineries are already running out of gasoline for immediate delivery, according to CNN.
More than a dozen oil refineries are offline with concerns in relation to Hurricane Harvey.
By Mike Shiloh
Copyright August 31, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved