• The KillerFrogs

Gas shortage due to the hurricane

Deep Purple

Deep Purple

Full Member
NNM said:
There is no actual gasoline shortage. The full supply chain is just fine. There were some temporary curtailment of refinery operations, but they were not shut down and did not suffer any meaningful damage. This is absurd. Give it a day and it will be back to normal. Any shortages are extremely localized and purely caused by irrational fear of shortages, not by actual supply constraints.

I'm in a position to actually know what I'm talking about on this one.
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According to the news yesterday, six Texas refineries had to temporarily shut down because they were without electrical power. Tough to operate with no power. They included the big refinery in Beaumont, which is the world's largest.

We just saw a storm that drove tens upon tens of thousands of people out of their homes and devastated hundreds of square miles of housing and infrastructure. A "once in 500 years storm," as I heard one meteorologist call it. Not sure how some of you can believe that refining operations aren't affected by that and can just continue right long as if nothing happened.

Having said that, all those refineries are back online and Texas currently has a record supply of already-refined gasoline in storage tanks -- but many of those tanks are in flooded or flood-damaged area. The real problem was getting the gas from those tanks to retailers over submerged roads, rails, and bridges, As someone else said, a temporary distribution problem.

Hoarders make the situation much worse than it actually is, and the media feeds those idiots. That doesn't mean there wasn't a real issue with getting the gas from the places it was stored to the places where people could buy it.
 
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NNM

NNM

I can eat 50 eggs
Deep Purple said:
According to the news yesterday, six Texas refineries had to temporarily shut down because there were without electrical power. Tough to operate with no power. They included the big refinery in Beaumont, which is the world's largest.

We've just see a storm that has driven tens upon tens of thousands of people out of their homes and devastated hundreds of square miles of housing and infrastructure. A "once in 500 years storm," as I heard one meteorologist call it. Not sure how some of you can believe that refining operations aren't affected by that and can just continue right long as if nothing happened.

Having said that, Texas currently has a record supply of already-refined gasoline in storage tanks -- but many of those tanks are in flooded or flood-damaged area. The problem is getting the gas from those tanks to retailers over submerged roads, rails, and bridges,
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Good grief. You may know university administration, but stay in your lane.

Others on this board do not know much about university administration, but know an awful lot about oil and gas supply chain intricacies and economics. There has been temporary curtailment of refinery operations at some, and ramping up at others. The Port Arthur refinery temporary shut in (no damage) and the temporary shut in of the Colonial pipeline from Baton Rouge to Houston (no damage, main artery for refined products from Philly/NY to TX) is enough to squeeze supply and cause price surging. But not to cause supplies to stop or disappear. Stations emptied because of the panic today will be resupplied tomorrow. In addition, refineries in Corpus that had their operations curtailed are getting back to normal output levels.

This is irrational and absurd. The stations will have gasoline. There is no market shortage of gasoline. The depletion from the panic will be resupplied. Quickly.
 
Deep Purple

Deep Purple

Full Member
NNM said:
Good grief. You may know university administration, but stay in your lane.

Others on this board do not know much about university administration, but know an awful lot about oil and gas supply chain intricacies and economics. There has been temporary curtailment of refinery operations at some, and ramping up at others. The Port Arthur refinery temporary shut in (no damage) and the temporary shut in of the Colonial pipeline from Baton Rouge to Houston (no damage, main artery for refined products from Philly/NY to TX) is enough to squeeze supply and cause price surging. But not to cause supplies to stop or disappear. Stations emptied because of the panic today will be resupplied tomorrow. In addition, refineries in Corpus that had their operations curtailed are getting back to normal output levels.

This is irrational and absurd. The stations will have gasoline. There is no market shortage of gasoline. The depletion from the panic will be resupplied. Quickly.
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I didn't contradict a single thing you just said. Merely pointed out that there actually was a real but temporary distribution problem which the media blew all out of proportion (the way the media does) and which idiots seized on to do what idiots do.

What's the problem?
 
NNM

NNM

I can eat 50 eggs
Deep Purple said:
I didn't contradict a single thing you just said. Merely pointed out that there actually was a real but temporary distribution problem which the media blew all out of proportion (the way the media does) and which idiots seized on to do what idiots do.

What's the problem?
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I was reacting, strongly, to your statements that "but many of those tanks are in flooded or flood-damaged area. The real problem was getting the gas from those tanks to retailers over submerged roads, rails, and bridges." In this panic environment, that is the kind of inflammatory language that leads people to believe that there is an actual crisis. There is not. The industry doesn't have any constraints on supplying gasoline to DFW or other areas. The supply pinches are easily overcome through a plethora of solutions. There will be price surges as there always are, but no market supply problems.
 
HToady

HToady

Full Member
Deep Purple said:
According to the news yesterday, six Texas refineries had to temporarily shut down because they were without electrical power. Tough to operate with no power. They included the big refinery in Beaumont, which is the world's largest.

We just saw a storm that drove tens upon tens of thousands of people out of their homes and devastated hundreds of square miles of housing and infrastructure. A "once in 500 years storm," as I heard one meteorologist call it. Not sure how some of you can believe that refining operations aren't affected by that and can just continue right long as if nothing happened.

Having said that, all those refineries are back online and Texas currently has a record supply of already-refined gasoline in storage tanks -- but many of those tanks are in flooded or flood-damaged area. The real problem was getting the gas from those tanks to retailers over submerged roads, rails, and bridges, As someone else said, a temporary distribution problem.

Hoarders make the situation much worse than it actually is, and the media feeds those idiots. That doesn't mean there wasn't a real issue with getting the gas from the places it was stored to the places where people could buy it.
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You failed to mention that the Federal Government released reserves yesterday. Please add that to your informative dissertation.
 
Deep Purple

Deep Purple

Full Member
NNM said:
I was reacting, strongly, to your statements that "but many of those tanks are in flooded or flood-damaged area. The real problem was getting the gas from those tanks to retailers over submerged roads, rails, and bridges." In this panic environment, that is the kind of inflammatory language that leads people to believe that there is an actual crisis.
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The truth is now "inflammatory language"? Got it.

Apparently the Texas Railroad Commissioner and the Department of Energy are using inflammatory language. That's were this information came from.
 
JogginFrog

JogginFrog

Active Member
tcudoc said:
Just trying to beat the others to the punch.
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Appreciate DogFrog teeing it up for us, especially on the opening day of college golf season.
1.jpg


Though I guess Houston is more like this:
harvey_1920_flooded.jpg
 
tcudoc

tcudoc

Full Member
Deep Purple said:
There are lane restrictions in citing public announcements?

Don't think so.
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Not at all. You are a good guy and a great contributor to the forum. The issue people have is that you give the idea that you are an expert on all topics. It is fine to have opinions and thoughts, just state them as such and avoid presenting your opinions and thoughts as the final word on a topic. I think you would find people much more receptive to your input if you presented it as such.
 
SAT Frog

SAT Frog

Active Member
Not sure how it is elsewhere but thanks to the idiots freaking out and running to get gas here in San Antonio. See the below headline that just came out

"San Antonio drivers reported that 73 percent (460 stations) of the area’s roughly 630 gas stations were out of fuel Friday afternoon as farmers, transportation companies and companies scrambled to find backup fuel, according to data submitted by drivers to gas price tracker GasBuddy.com."
 
netty2424

netty2424

Full Member
SAT Frog said:
Not sure how it is elsewhere but thanks to the idiots freaking out and running to get gas here in San Antonio. See the below headline that just came out

"San Antonio drivers reported that 73 percent (460 stations) of the area’s roughly 630 gas stations were out of fuel Friday afternoon as farmers, transportation companies and companies scrambled to find backup fuel, according to data submitted by drivers to gas price tracker GasBuddy.com."
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I had to fill up a few gas cans yeasterday for equipment needed at the farm this weekend and I felt like everyone was staring at me with that "you're a gas hoarder" look.
 

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