Gasoline Supply Problems hit US East Coast

CNN Money.com ^ | 4-21-06

[Namyak]

April 21, 2006: 8:45 AM EDT

WASHINGTON (Reuters) - Some gasoline distribution terminals from Virginia to Massachusetts are seeing shortages as the industry phases out a water-polluting additive, the U.S. Energy Department said on Thursday.

The Energy Department has reported shortages at terminals near Richmond, Virginia, as well as the Tidewater area near Chesapeake Bay and Virginia Beach which distribute gasoline to service stations . Average cost for a gallon of regular will be 25 cents higher than last year, U.S. says; strong driving season expected.

Critics say ill-timed legislation is partly responsible for prices at the pump, but others say the industry should have seen what was coming.

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Northern Virginia, Baltimore and Boston are also seeing shortages, the department's Office of Electricity Delivery and Energy Reliability said.

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The National Association of Convenience Stores, whose 2,200 member stores account for 75 percent of U.S. gasoline sales, also said members had reported shortages at terminals around Wilmington, Delaware, and Philadelphia.

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Rather, the oil industry is rapidly eliminating a gasoline additive called MTBE, banned in several states for polluting ground water, and replacing it with ethanol, a renewable fuel that can't be shipped by pipeline because it absorbs water.

"There's not a shortage of supply," said John Eichberger, a spokesman for the group. "It's a transitional issue."

Because ethanol is a solvent, it will strip corrosion and impurities that build up inside gasoline storage tanks, allowing them to mingle with gasoline supplies.

That means terminal operators must drain giant tanks that hold gasoline stocks and scrub out the impurities before they can be refilled with ethanol-enriched gasoline, he said.

"That's going to compromise supplies for awhile," he said.

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[Namyak]

For your discussion.

[Namyak]

http://www.freerepublic.com/focus/f-news/1618813/posts related thread

[VanDeKoik]

Time to steal the kids bike for the morning commute?

[Eric in the Ozarks]

Another energy crisis made in Washington DC.

[theDentist]

"That's going to compromise supplies for awhile," he said.

"A while" is their way of saying 3 to 6 months.

[Fitzcarraldo]

Let's all agree with the Iranian Hitler that oil and gasoline are underpriced. /sarc

[paguch]

Time to steal the kids bike for the morning commute?

No. This is time to ask the Congress why they have not planned for this circumstance. This is the same as Katrina but the blame is firmly on the Congress. There has been so much pandering to Kyoto and the environmentalists that Congress has abdicated their responsibility.
Their solution will most likely be to tax the oil companies, which will be paid by us, the constituents.

This is no different than how they screwed up Social Security, while exempting themselves from the program.

We need to demand that Congress comes up with a solution without punishing us!!! How about Anwar, refineries, nuclear power, offshore drilling and oil shale for starters? The solutions are there. They need to know that we know where the problem is. CONGRESS.

[upchuck]

Because ethanol is a solvent, it will strip corrosion and impurities that build up inside gasoline storage tanks, allowing them to mingle with gasoline supplies.

That means terminal operators must drain giant tanks that hold gasoline stocks and scrub out the impurities before they can be refilled with ethanol-enriched gasoline, he said.

Expanding a little on this, what about the, "corrosion and impurities that build up inside gasoline storage tanks, allowing them to mingle with gasoline supplies" in the big tank at my gasoline retailer? And, on a personal level, what about the gas tank in my car?

Are we doomed? </30% sarcasm>

[D-Chivas]

I can see it now: more waves of unintelligent discussion here concerning ethanol by ignorant fools who have been convinced by some car dealer's service department that they need a new $700 disgronificater because their 2003 Chevy Truck or whatever can't run properly on E10 fuel.

I've been running E10 (10% ethanol/90% gas) in my cars for 25 years with absolutely no problems.

[Namyak]

I don't feel I'm knowledgeable about the topic to comment fully, but in my own anecdotal experience with ethanol, those people with older cars will likely experience problems if you live in an area that didn't have ethanol added to its gasoline until now, and people with high-performance vehicles may need to get their spark-timing adjusted slightly. But like I said, I'm not an expert, so if someone who knows more could edify us that would be greatly appreciated.

[HankReardon]

Round up the usual suspects for appropriate blame; the EPA, the environmentalists, pandering politicians from both parties over the last few decades, and especially the ignorant and misled general populace.

Is American oil refining capacity currently being increased anywhere? If not, yeah man, $5.00 a gallon gasoline on the way! Why would it NOT happen if refining capacity is not being increased while demand is sky rocketting?

And no one is hoarding gas. At current high prices, anyone with a gallon of gas to sell has it on the market.