East Coast could face gas shortage, rising prices

EMERGENCY DECLARED/ALABAMA/GEORGIA/GASOLINE SHORTAGE

A pipeline leak in Alabama may bring back a bad memory from the late 1970s for consumers on the East Coast surging gasoline prices and stations that run out of fuel.

The good news the price spike shouldn"t last that long. On the other hand, when speculators get involved, as they did after 2005"s Hurricane Katrina, the long term effect on prices can be hard to predict.

Already the gasoline futures market has responded with a rise in prices. In a Tweet, GasBuddy senior analyst Patrick DeHaan predicted prices at the pump could rise between five and 15 cents a gallon in Georgia, North Carolina, Tennessee, and Virginia, and as much as 20 cents a gallon in South Carolina. He says some station tanks may run dry.

Week-long shutdown

A week ago the Colonial Pipe, which is the main transporter of gasoline and diesel fuel from Houston to the East Coast, suffered a leak in rural Alabama and had to be shut down.

Now, engineers say it may be another week before the leak is repaired and the fuel can start flowing again. That could result in a significant draw-down in supplies in areas served by the pipeline, resulting in price hikes and possible shortages.

At the same time, Reuters reports BP will conduct major maintenance this weekend at its Whiting, Indiana refinery, reducing its output by as much as half. So, as oil prices have been fairly soft this week, the outlook is for gasoline prices to move in the other direction, at precisely the time they normally start to fall.

Low-priced states hit first

For consumers in the most-affected states, the saving grace is the fact they are starting out with some of the lowest gasoline prices in the country. South Carolina, expected to be the hardest-hit state, currently has the lowest prices in the nation, with a statewide average of $1.94 a gallon. The price is $2.02 in North Carolina and $1.98 in Virginia.

Meanwhile, Georgia Governor Nathan Deal has declared a state of emergency, allowing the suspension of federal rules and regulations that limit the hours of operation that commercial vehicles may be in use.

Source: http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNFLyZYPYZtwutuYIyPJ0Ku77X_hYw&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52779211905450&ei=GpLdV9iON8bH3QHLhKW4CQ&url=https://www.consumeraffairs.com/news/east-coast-could-face-gas-shortage-rising-prices-091616.html

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DEVELOPING: State of emergency in NC due to gas shortage

Heads Up: Pipeline Explosion To Cause Gas Shortages on East Coast
WLOS

RALEIGH, N.C. -- Governor McCrory"s office declared a state of emergency in North Carolina due to the gas shortage expected from a major pipeline burst in Alabama.

"We are working with state and national officials to make sure North Carolina is not impacted by this leak," said McCrory in a press release issued Friday evening. "This executive order will help protect our motorists from excessive gas prices and ensure an uninterrupted supply of fuel that is essential for the health, safety and economic well-being of businesses, consumers and visitors in North Carolina."

Some experts expect gas prices to go up as much as 20 cents in the next few days. Several Ingles gas stations across WNC are completely out of gas, with no estimate on when they"ll be back in business.

Officials believe six states--North Carolina, South Carolina, Tennessee, Virginia, Georgia and Alabama--are all facing possible shortages due to the spill.

McCrory"s Executive Order 101 eliminates certain size and weight restrictions on vehicles transporting gasoline into the state. It also eliminates registration requirements for those vehicles. According to Section 6, parts of the waiver are in effect for 30 days or the duration of the emergency, whichever is less.

The Colonial Pipeline runs from Texas to New York and supplies gas to an estimated 50 million people a day on the East Coast. On September 9, a 36-inch pipeline near Birmingham, Alabama began leaking gasoline into a nearby pond. The pipeline was shut down after the leak was discovered.

Approximately 230,000 gallons of gasoline and water have been recovered as of Friday afternoon.

Source: http://wlos.com/news/local/breaking-state-of-emergency-in-nc-over-gas-shortage

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