I will believe the Saudis don't see any upcoming problems with Ghawar when they cancel one of their projects due to low oil prices. If they continue to be full steam ahead with increasing their capacity then I think they are aware that Ghawar may not be as robust in 5 years time as they would like us to believe.
Joined: Oct 15, 2004 Posts: 2230 Location: Arkansas
Posted: Fri Oct 03, 2008 9:01 pm Post subject: Gasoline pipeline to North East shut today
Quote:
Colonial Shuts Its Only Fuel Pipeline to Northeast After Damage
By Robert Tuttle
Oct. 3 (Bloomberg) -- Colonial Pipeline Co., the world's largest operator of petroleum-product pipelines, said a pipeline that carries fuel into the U.S. Northeast is shut after a contractor damaged the line earlier today.
The 30-inch line, the only Colonial line carrying fuels including gasoline and diesel from Greensboro, North Carolina, to Linden, New Jersey, was shut around noon today, Steve Baker, a company spokesman, said in a telephone interview.
To contact the reporter on this story: Robert Tuttle in New York at rtuttle@bloomberg.net
Last Updated: October 3, 2008 16:10 EDT
Company Profile
Colonial Pipeline Co. is an interstate common carrier of petroleum products. Each day, it delivers an average of 95 million gallons of gasolines, kerosenes, home heating oils, diesel fuels and national defense fuels to shipper terminals in 12 states and the District of Columbia.
The 5519-mile Colonial system transports these fuels from Texas, Louisiana, Mississippi and Alabama to 267 marketing terminals located near the major population centers of the Southeast and Eastern Seaboard.
The Importance of Oil Pipelines
A vast underground network fuels our nation. Working day and night, these steel pipes transport the natural gas, crude oil and refined petroleum products that sustain our industry, our economy and our individual households.
Today, oil pipelines alone carry almost one-quarter of this nation's total inter city freight, yet at a cost so low that it is less expensive to transport twelve 6.4-pound gallons of gasoline from Houston to New York by pipeline than it is to mail a one-ounce first class letter the same distance.
About half of all crude oil and petroleum products consumed in our nation is transported in some 200,000 miles of liquids pipelines. In 1995, approximately 601.1 billion ton-miles of crude oil and petroleum products were carried in the United States through this network of pipes.
For many years, pipelines have safely and efficiently supplied petroleum to meet the energy needs of the United States. Those pipelines are necessary for our daily functions. They provide the easy accessibility to fuel on which our economy and lifestyle depend, in addition to supplying major airports and military installations.
In 1996, Colonial Pipeline Co. delivered 820.1 million gallons of jet fuel directly to airports across the country. These airports included: Dulles International Airport, Baltimore-Washington International Airport, Nashville Metropolitan Airport, Charlotte-Douglas Airport, Raleigh-Durham Airport, Greensboro Triad and Hartsfield Atlanta International Airport. If oil pipelines were not available, tanker trucks or other modes of transport would be required to supply the demand for jet fuel and other petroleum products.
Colonial continues in its position as the world's largest-volume refined petroleum products pipeline system. In 1995, Colonial transported 92.4 billion ton-miles of petroleum products. This accounts for over 20 percent of the total 458.9 billion ton-miles of petroleum products transported by pipelines, water carriers, motor carriers and railroads in 1995.
Petroleum pipelines offer many advantages over other modes of transportation:
* Highways are less congested with tanker trucks;
* Fewer highway repair costs result;
* Citizens are safer due to reduced truck traffic;
* The air we breathe is cleaner;
* All types of fuel are less expensive; and
* A steady, dependable supply of fuel is always available.
Posted: Fri Oct 03, 2008 11:48 pm Post subject: Re: Gasoline pipeline to North East shut today
First a "fire" was causing problems, now a "contractor" damaged the pipeline. How many different stories will they come up with to explain why first one region gets no gas, then another?
So, now they will draw down the supplies in people's gas tanks in the Northeast while they try to refill the tanks in the Southeast. Buys a little more time here.
Eventually maybe they can get even with systemic demand destruction, but how long can the economy keep rolling along once the hidden inventory is drawn down everywhere?
Where is the Tax Base upon which to repay the debt? You can't replace the lost production in the Gulf. I guess the local plan would be to steal Petrobras Oil and starve out the Brasilians? They can run their cars on Ethanol from Sugar Cane while we use their Oil?
Posted: Sat Oct 04, 2008 2:19 am Post subject: Re: Gasoline pipeline to North East shut today
The specific line that was damaged was the deisel fuel line. Also interesting - "anticipated down time" and "uncertain how long the repairs will take."
It would appear to make a good cover for a week or so outage. Will the anticipated down time overlap the repair time? Lots of variables here. I'm not saying it screams conspiracy, but it the circumstances introduce enough doubt.
Add the crashing economy, threats of martial law, outright supply outages in the south, NORTHCOM marine columns moving in full battle rattle and FEMA operations with hired soldiers that don't speak english (mercenaries)...and well. Yeah. I'm going to leave it right there for now.
Posted: Sat Oct 04, 2008 5:00 am Post subject: Re: Gasoline pipeline to North East shut today
Keep calm everyone. That pipeline is not the only sourse of supply to the North East. Quite a bit of fuel lands in Boston via ship to the Everate Mass terminal and Supplies are shipped south from Montreal on a daily basis.
Its a broken pipeline and broken pipes can be fixed. How long it takes is determined by how deep and how wet the hole is. If they broke it digging then the digging equipment at least is there but if its a wet hole they may have to install shoring and of course Clean Harbors will have a field day sucking up the spilled product and disposing of it in an enviromentally (Expensive) way.
Joined: Oct 23, 2004 Posts: 5928 Location: New Jersey
Posted: Sat Oct 04, 2008 8:54 am Post subject: Re: Gasoline pipeline to North East shut today
Quote:
Farm soiled by oil: One estimate says 3 million gallons clogged in pipe
By JACK KNARR, Staff Writer10/04/2008
HAMILTON - Construction workers on the New Jersey Turnpike in Hamilton punched a hole in an interstate oil pipeline yesterday, causing about 1,000 gallons of diesel oil to ooze out onto the fertile soil of Evergreen Farm.
From the spot where the 2-inch drill bit broke through to Raritan 23 miles away where a valve was activated that electronically shut down the pipeline, the township estimates 3 million gallons of oil were backed up in the Colonial Pipeline.
A Colonial spokesman said it was less, but had no estimate.
Repair workers were drilling more new holes in the pipeline last night, so evacuation hoses could be inserted, and 200,000 gallons of oil sucked out and saved in trucks. Only then could the accidental breach - and the evacvuation holes - be repaired this weekend, said Colonial Manager Steve Baker.
Baker said the pipeline could be back in service some time this weekend. "But this line was scheduled to be idle this weekend anyway," he said. "I don't think this will have that big an impact" on overall Colonial delivery.
The pipeline can be switched from diesel to gasoline, etc., although here they are talking just about 'oil', possibly meaning heating oil or diesel.
Interesting that the pipeline was supposed to be shut down this week end anyway. Perhaps supplies are not back to normal after all, as was stated on September 29. _________________ It's already over, now it's just a matter of adjusting.
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Keep calm everyone. That pipeline is not the only sourse of supply to the North East. Quite a bit of fuel lands in Boston via ship to the Everate Mass terminal and Supplies are shipped south from Montreal on a daily basis.
