by vox_mundi » Tue 01 Nov 2016, 13:38:07
Gasoline Pipeline Blast Could Raise Pump Prices in Southeast$this->bbcode_second_pass_quote('', 'A') fatal explosion has shut down a pipeline supplying gasoline to millions of people across the Southeast — the second accident and shutdown in two months — raising the specter of another round of gas shortages and price increases.
It happened when a dirt-moving track hoe struck the pipeline, ignited gasoline and sparked a blast Monday, killing one worker and injuring five others, Colonial Pipeline said.
Flames and thick black smoke continued to soar on Tuesday, and firefighters built an earthen berm to contain the burning fuel.
$this->bbcode_second_pass_quote('', '[')b]Fuel shortages in the Southeast could be more severe this time if both of Colonial Pipeline's main lines remain shut down, as they were Tuesday, for several days, experts say. Together the two pipelines (
diesel, jet fuel and gasoline) carry more than 2 million barrels of fuel a day.
"Both lines are down, no gasoline is moving down the line. Nothing is going through," said Tamra Johnson, a spokeswoman for AAA.
"So we can actually start seeing some supply outages in the coming days if they don't put a plan in place."If the pipeline's two main lines remain closed, motorists could begin seeing prices rise at the pumps within about a week, Johnson said.
After the explosion, gasoline futures rocketed almost 8 percent higher on the New York Mercantile exchange, to $1.53 per gallon.
"In a worst-case scenario we could be talking about more severe outages than what we saw back in September. It's very worrisome that both pipelines are shut down right now," said Patrick DeHaan, an analyst with price-tracking service GasBuddy.com.
$this->bbcode_second_pass_quote('', 'P')lagued by a severe drought after weeks without rain, the section of Alabama where the explosion happened has been scarred by multiple wildfires in recent weeks, and crews worked to keep the blaze from spreading.
Coleen Vansant, a spokeswoman with the Alabama Forestry Commission, said crews built a 75-foot-long earthen dam to contain burning fuel. The Shelby County Sheriff's Office said the blaze had been contained but it was unclear how long the fire may take to burn out.
Colonial Pipeline Explosion in Alabama Sends Gas, Diesel Prices Higher$this->bbcode_second_pass_quote('', 'G')asoline and diesel prices soared Tuesday after a major fuel artery was severed for the second time in two months, cutting off the pipeline that supplies much of the East Coast with gasoline, diesel and jet fuel.
The outage on the Colonial pipeline following a Monday explosion threatens to cause gasoline shortages across much of the southeast and could cause flight disruptions at airports from Baltimore to Raleigh, N.C.
Colonial said on Tuesday that the diesel pipeline resumed operations at midnight and that the gasoline line is scheduled to restart Saturday, but that could change after the company gets more information. Colonial said it would work with shippers to send gasoline through the diesel line.During the previous slowdown, gasoline prices jumped by more than 20 cents in a matter of days throughout Georgia and in parts of Tennessee and South Carolina. Atlanta filling stations experienced gasoline shortages after some drivers made multiple trips to fuel up all their cars.
“
Just having one line shut down caused a circus. Imagine having both,” said Patrick DeHaan, senior petroleum analyst at GasBuddy. “
It’s much more grave of a situation, and prices are shooting up.”
The East Coast has become more dependent on fuel deliveries from the Gulf Coast after refineries along the Eastern Seaboard have shut down in recent years. Earlier this year, Kinder Morgan halted plans to build a fuel pipeline from South Carolina to Jacksonville, Fla., amid local opposition and legislation in Georgia aimed at preventing the pipeline from being built. The pipeline was slated to open next year.

Barclays analyst Warren Russell said on Tuesday prior to Colonial's statement that a restart could take longer due to concerns by regulators, given the proximity to the September leak, and as repair and safety inspections take place.
“The facts on the ground are not 100 percent clear," said Russell. "This is the second accident in two months, so the stakes are much higher this time around."