Posted on 04/21/2006 6:24:13 AM PDT by 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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(Excerpt) Read more at money.cnn.com ...
http://www.freerepublic.com/focus/f-news/1618813/posts related thread
Time to steal the kids bike for the morning commute?
Another energy crisis made in Washington DC.
"A while" is their way of saying 3 to 6 months.
Let's all agree with the Iranian Hitler that oil and gasoline are underpriced. /sarc
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>
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.
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.
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