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Oil & Gas

Tuesday
18 May 2021

Southeast US Fuel Stocks Rise After Pipeline Restart

18 May 2021  by argusmedia.com   
Retail fuel supplies in the southeastern US are slowly returning to normal levels after panic buying drained storage following the cyberattack-induced shutdown of the Colonial Pipeline earlier this month.

In Virginia the supply situation has improved since last week, but there are still many locations that have no gasoline or diesel, according to state Petroleum and Convenience Marketers Association chief executive Mike O'Connor.

"The restoration of product appears to be spotty with outlets of the same chain with gas on one side of town while sister properties on the other have no gas or diesel," O'Connor told Argus. "Nevertheless, the panic has abated and as we approach Memorial Day we look forward to continued improvement."

Retail station operator Love's Travel Stops said nine of its locations were temporarily out of gasoline as of today, with six sites in Georgia, two in South Carolina and one North Carolina site. Seven other locations in the southeast were at-risk of gasoline outages, with one Virginia location at-risk of an outage of gasoline and diesel fuel. Love's operates more than 550 locations in 41 states.

No gasoline was yet available at four locations of Tennessee-based Pilot Flying J today, while one site had no gasoline or diesel. The company has more than 750 locations in 44 states.

Georgia governor Brian Kemp (R) late last week extended an executive order suspending the collection of the state's 28.7¢/USG tax on gasoline and 32.2¢/USG tax on diesel fuel to 22 May, saying the order would "ensure fuel supply chains have every resource needed to deliver gas quickly and safely, and that Georgians aren't hit with state gas taxes at the pump during this shortage."

The US Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) on 9 May issued an hours-of-service waiver exemption for 17 states and the District of Columbia lasting through 8 June.

Colonial shut the pipeline network on 7 May to address a ransomware infection. Limited service started three days later, and a full restoration of the system started on 12 May. Initially the system restarted without shippers able to redirect supplies to markets most in need. But over the weekend the company said it would begin accepting scheduling changes.

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