North American Fuel Shortage Reports

[EndOfGrowth]

I'm a little confused here. Are the shortages of gasoline related to problems with ageing refineries which are unable to process enough finished products? Or is it that the decreasing quality of crude imports are causing processing problems at the refineries? Or is it a result of stagnating global oil production and increased demand?

[Madpaddy]

All of the above.

[stu]

The fuel truck restrictions in Kansas have been lifted until the middle of August.

http://www.governor.ks.gov/news/NewsRel ... -0710b.htm

July 10, 2007 Recent natural disasters have put two Kansas oil facilities out of service, causing problems with fuel deliveries – problems which could hamper the state’s wheat harvest.

In an effort to avoid fuel supply disruptions, Governor Kathleen Sebelius has lifted certain restrictions on motor carriers making fuel deliveries.

“The harvest would grind to a halt without reliable fuel supplies. Lifting these restrictions will help prevent disruptions so we can make sure the trucks and combines keep running,” said Sebelius.

Storms on May 5 caused serious damage at the Magellan oil terminal in Great Bend, while recent flooding in Southeast Kansas forced the shutdown of the Coffeyville Resources refinery. The effect of these incidents has been amplified by refinery problems in neighboring states.

These disruptions have come at a time when fuel demand has increased due to the summer travel season and the wheat harvest. As a result, tanker trucks have encountered longer wait times at loading terminals, making it difficult for many to make deliveries while staying within limits on operator hours.

To combat this, Executive Order 07-19 suspends the requirements contained in the Federal Motor Carrier Safety Regulations CFR 49, Parts 390-399 under the authority of CFR 49, Part 390.23.

This order applies only to those motor carriers providing direct assistance to the emergency fuel relief effort and no motor carrier operating under the terms ofthis order shall require or permit a fatigued or ill driver to operate a commercial motor vehicle.

The order is effective for 30 days

Same time period for Iowa too.

http://www.governor.iowa.gov/news/2007/07/12_1.php

Today, in an effort to address low gasoline and diesel supplies caused by recent refinery outages, Governor Chet Culver signed a proclamation to temporarily lift regulatory provisions that limit the number of hours gasoline and diesel truck drivers can be on the road. Normally drivers are limited to a 12 hour per day delivery window, with a minimum of 10 hours off after each shift. The Governor’s actions today allow gasoline and diesel delivery drivers extra time to deliver gasoline and diesel to retail stations in Iowa.

Due to the recent wave of refinery outages and heavy demand, Midwestern supplies of gasoline and diesel are lower than normal. The Hours of Service Waiver issued by the Governor comes as Minnesota, Nebraska, North and South Dakota, and Kansas have also issued waivers.

“This was a necessary step,” said Governor Culver. “Supplies were tight to begin with, and then after the Coffeyville, Kansas refinery was flooded last week, supplies became very tight.

“Now is as good of a time as any to point out the need for our state and our country to focus on energy conservation, fuel efficiency and researching and developing new, innovative alternative fuels. I look forward to a day where gasoline refinery outages will not impact Iowa’s energy supply. Simply put, we must work to wean ourselves off foreign oil. I am committed to doing everything I can as Governor to ensure that Iowa remains a leader developing new, clean forms of alternative energy for future generations. I believe the new Iowa Power Fund and Office of Energy Independence are giant steps towards reaching our goals.”

This Hours of Service Waiver will be in effect for 30 days.

South Dakota And Minnesotas waivers are due for renewal today.

http://www.truckertotrucker.com/trucker ... f-Fuel.cfm

It's bad enough that the price of gas is over the $3 mark, but now just finding the darn stuff has become a real challenge in some Midwestern states.

Things have gotten so bad in North Dakota that this week Governor John Hoeven issued an emergency order allowing commercial gasoline haulers to search for the precious commodity in neighboring states. To help deal with fuel shortages at pipeline terminals, last week fuel haulers were granted extended service hours to search for fuel within the state. The expanded order enables them to cross state lines to obtain fuel in South Dakota and Minnesota. North Dakota's order runs through Saturday but is expected to be extended. Similar orders in South Dakota and Minnesota are in effect until July 19. Approved by US DOT, the orders allow truckers in all three states to travel freely across borders in search of fuel.

[EndOfGrowth]

So what we are seeing here is predominantly a result of refinery outages caused by environmental factors. And not the symptoms of geologic peak?

[MacG]

So what we are seeing here is predominantly a result of refinery outages caused by environmental factors. And not the symptoms of geologic peak?

If the owners of the refineries had believed in increases in future availability of crude, they would have invested in spare capacity. How come that these kinds of problems appear just now? And not in the 1950's, 60's or 70's? Go figure.

[AirlinePilot]

So what we are seeing here is predominantly a result of refinery outages caused by environmental factors. And not the symptoms of geologic peak?

Demand continuing growth and not allowing refineries to have normal downtime for maintenance and modernization. Also it has been shown here that lower quality crude is having a detrimental effect on reliability and utilization rates. Lower quality crude is harder on the equipment leading to unscheduled shutdowns. This has been well documented in the Refinery/ Pipeline problems thread.

Due to these factors I'd submit that this is the first large scale tangible effect of PO on society. Its causing a dangerously low gasoline supply and these problems show no signs of abating as the situation with demand and crude quality doesnt get better with time.

[Laurasia]

On my drive home from work, I've seen fuel shortages on an up-close and personal basis these last few days: folks carrying gasoline cans to their stalled cars. This evening, it was the drivers of an SUV who had brought out gasoline to their friends, stalled at the side of the road, in their....SUV. Ironic.

L.

[EndOfGrowth]

Thanks for clearing that up Airlinepilot, it puts it all in perspective now.

Laurasia, could we see some photos of this? Maybe the mods could create an 'out of gas' sign/ gas line photo thread.

[Laurasia]

EndofGrowth: I believe I've seen some pictures in these forums, posted by our members, of local gas station price signs - I don't remember which thread they were on though.

As for taking on-the-spot photos of stalled cars, etc., you're talking to someone who can't walk & chew gum, let alone take snapshots and drive!

Bet some other folks could do it though.

L.

[Ferretlover]

I was asking questions of a chemical engineer-he gave me his copy of this magazine. The article describes the process of getting the oil, etc.
Popular Mechanics Magazine Mar 2007
The oil rush: it takes big machines that make a big mess to mine black gold in Northern Alberta's vast oil sands. Is tapping these frontier reserves worth it?(SPECIAL REPORT)

Alberta Oil Sands

[EndOfGrowth]

EndofGrowth: I believe I've seen some pictures in these forums, posted by our members, of local gas station price signs - I don't remember which thread they were on though.

As for taking on-the-spot photos of stalled cars, etc., you're talking to someone who can't walk & chew gum, let alone take snapshots and drive!

Bet some other folks could do it though.

L.

Lol, practice makes perfect

Just kidding, I wouldn't encourage anybody to take photos whilst they're driving. Maybe you could get a passenger to take a few shots sometime?

[dohboi]

To elaborate on what APilot replied to EOGrowth:

It is my understanding that light sweet crude peaked some time in 2005. So now as we are getting less and less of the good stuff--the light sweet that the refineries were built to run on--and more and more of the heavy, sulferous grades, refineries are having more and more problems trying to refine this increasingly nasty sludge.

For one thing, the added acidity eats through the pipes causing more spills and the resultant explosions. Also, there are more down times as the industry is desperately trying to retool to handle the ever-lower-grade crap they are getting. Add this to the normal course of disasters and repairs in this inherently dangerous industry, plus (possibly GW-caused) flooding of at least one refinery, and you have the recipe for an ever-worsening situation.

(This is from what I have gleaned from reading posts here and at the oil drum. Those of your truly in the know, please correct any flaws in this description.)

But don't hold your breath for the main stream media to give this analysis; they'll just go on talking about refinery problems as if they have nothing to do with the cliff we are falling off. And the vast majority will buy it, or just assume it is corrupt price gouging.

[DantesPeak]

dohboi - well put, and in addition, the government mandated use of low sulphur fuels - and not just in the US - has made it even more difficult to process oil.

The problems seem to have multiplied since about the time of the peak of light sweet crude two years ago, although again government fuel standards changed not long after that - and have made the downslope of light sweet crude worse.

The probelm with lower quality oil seems to be confirmed by the price spread between lower and higher quality oil diverging more and more over time.

[DantesPeak]

Magellan Pipeline Predicts ULSD Outages in Midwest

According to a report from OPIS, Magellan Pipeline has notified shippers that due to upcoming planned refinery maintenance and already tight supplies that the company expects outages of ultra-low sulfur diesel to develop in the near future especially in markets such as Minnesota, Iowa, Kansas City and parts of Oklahoma that experienced tight supplies and upsets this summer.

OPIS, 11:25 August 15, 2007
susbscription required
OPIS

[jbeckton]

Seems like this thread was an overreaction to the normal summer price hike and shrotage scare.

I have traveled all over the midwest this summer and can't recall any "out of gas" signs.

Gas is back down to $2.65 here in Pittsburgh. See you all next year for the annual overreaction.

[jbeckton]

Seems like this thread was an overreaction to the normal summer price hike and shrotage scare.

I have traveled all over the midwest this summer and can't recall any "out of gas" signs.

Gas is back down to $2.65 here in Pittsburgh. See you all next year for the annual overreaction.

[vision-master]

Yeah, it dropped here too,,,,,,,,,,until yesterday.

Back up to $2.99 gal.

[jbeckton]

Yeah, it dropped here too,,,,,,,,,,until yesterday.

Back up to $2.99 gal.

You need to look around better. I see a lot of gas stations at $2.63-$2.65

http://www.twincitiesgasprices.com/

[Chuckmak]

Seems like this thread was an overreaction to the normal summer price hike and shrotage scare.

I have traveled all over the midwest this summer and can't recall any "out of gas" signs.

Gas is back down to $2.65 here in Pittsburgh. See you all next year for the annual overreaction.

Here in PGH? You sure? Lowest I've seen was $2.69

[DantesPeak]

They'rrre back. Upper Midwest/Rocky Mountain area gasoline shortages, that is.

Gas Shortage in North Dakota
Aug 27 2007 7:09PM
KXMBTV Bismarck

A study by Triple-A says Gas Prices in North Dakota are the highest of the lower 48 state'saveraging $3.03 a gallon.

The situation may get worse before it gets better.

Officials say a supply shortage in the midwest is THE reason for high prices. In fact, gas is in such short supply Governor Hoeven requested a waiver today from the EPA to get gas out of Canada.

The shortage has left area stations scrambling for fuel.

KXMB
stu found this one - also posted on front news page