Thursday August 31, 2017
As the remnants of Hurricane Harvey trek inland, damage left in its wake continues to surface. Most recently, a lack of refined product from East Texas (gasoline and diesel) has forced the Colonial Pipeline to shut down operations, significantly slowing the flow of fuel headed up the East Coast. Fortunately, this outage is considered temporary as the permanent impact to most Gulf Coast refineries appears to be minimal and employees are slowly making their way back to work.
Still as of now, at least 25-percent of domestic refining capacity from Houston and surrounding areas (over 4.5 MMbbls) remains shut-in and not ready to start. In the near term, please be aware that this shortage will lead to regional supply disruptions and market-driven price fluctuations.
As our thoughts remain with those most affected by this devastation, know that PAPCO | World Fuel Services remains on top of this very fluid situation. Our team is working non-stop to source product from an expansive supply network built over the past 40 years, and we are doing everything possible to ensure operational fuel needs are met for our customers.
NOTE: This situation has also severely stressed the carrier base. Will-call operations should prepare to place fuel orders in as far advance as possible, and all fuel operations should consider taking as many fuel savings measures as possible over the next several days.
- CPL updates: https://harvey.colonialresponse.com/
- Energy updates: https://www.eia.gov/petroleum/
- Weather updates: http://www.nhc.noaa.gov/gtwo.php?basin=atlc&fdays=2
Please call 800-899-0747 for any further questions. Thank you.