Alabama, Tennessee, & Georgia Declare States Of Emergency As Gas Shortages Loom After Pipeline Leak

Tyler Durden's picture

As Native Americans protesters face arrest in North Dakota for blocking the construction of the Dakota Access Pipeline, TheAntiMedia's Carey Wedler reports a gasoline pipeline spill is currently unfolding in the South. The leak has prompted Alabama Gov. Robert Bentley, Tennessee Gov. Bill Haslam, and Georgia Gov. Nathan Deal to declare states of emergency.

The Colonial Pipeline, which runs from Houston to New York, began leaking on September 9, spilling 250,000 gallons of gasoline, or 6,000 barrels. The pipeline was built in 1962, and the current leak in Helena, Alabama, is the largest one Colonial Pipeline has experienced in 20 years, Reuters noted.

 

 

AL.com reported that according to the Colonial Pipeline company’s spokesperson, Bill Berry, the pipeline could still be leaking:

 

“The leaking pipeline was shut down [last] Friday after the leak was discovered, but Berry said there may be additional gas still inside the pipeline. The leaking section of pipeline hasn’t been excavated yet due to safety precautions, so Berry said the condition of the pipeline and cause of the leak is still unknown.”

 

 

Hundreds of employees and contract workers face health risks from inhaling vapor as they work overtime to clean up the spill, which the company says is contained to a mining retention pond. AL.com reports “the leak was discovered at the inactive mine site by employees of the Alabama Surface Mining Commission.”

The governors of Georgia, Tennessee, and Alabama have declared states of emergency, not due to environmental concerns, but over the gas shortage that will result from the leak. After Colonial Pipeline announced Thursday there would be a delay in restarting the pipeline because “work activity was intermittent overnight due to unfavorable weather conditions that caused gasoline vapors to settle over the site,” the price of gasoline futures rose six percent... even as crude futures prices tumbled...

 

As CNN reports, The major pipeline, one pipe of which has been severed, provides gasoline for an estimated 50 million people on the East Coast each day, according to company estimates. The cause of the leak has yet to be determined, according to the company's most recent statement.

The pipeline's operator has said full service will not be restored until at least next week. The closure has set off an industry-wide scramble as suppliers seek alternative ways to transport gasoline to the East Coast.

 

According to reports, the leak will likely start affecting drivers in the nearby states of Georgia, Tennessee, North Carolina and South Carolina within a matter of hours and may spread in coming days. Colonial Pipeline Co., which transports some 40% of the gas along the I-95 corridor says at least 250,000 gallons of gasoline have already been lost.

 

Senior petroleum analyst Patrick DeHaan warned that some stations may run out as primary gasoline transportation shipping routes along the East coast have been temporarily closed.

 

Not every station will be able to get the gasoline it needs, he said.

 

“You’re going to see some places without gasoline,” he said. “It’s like a mini-hurricane.”

 

The pipeline operator said that based on its current projections, parts of Georgia, Alabama, Tennessee, North Carolina and South Carolina will be the first markets to suffer potential supply disruptions.

And sure enough the price of East Coast gasoline is soaring relative to the slide in West Coast... (4month highs for East Coast vs 1-month lows for West Coast)

Gas prices typically fall at this time of year. Thursday was the day that stations in most of the country could start using the cheaper winter blend of gasoline rather than the summer blend, which is formulated to combat smog. But East Coast gas prices are spiking already...

 

As SHTFPlan's Mac Slavo notes, the massive pipeline leak in Alabama is threatening widespread gas shortages and significant price hikes on the East Coast of the United States. Though the leak reportedly poses no danger to the public, officials say it stands to affect drivers all along the I-95 corridor from Florida to Maine.

If you live in any of the aforementioned states then you may want to head to your local gas station and fill up the tanks. Though any shortages will be temporary, not being able to get gas for several days or a week could prove troublesome to the 50 million residents served by the Colonial pipeline. The shortage may also impact grocery store deliveries, so if you have anyessential items you absolutely must have it may be a good idea to pick those up before trucks stop delivering.

 

The declared states of emergency highlight the fragility of just-in-time delivery systems that include critical goods like gasoline, food and medicine. As we’ve previously noted, even a small emergency could wreak havoc on a local, state or nationwide basis with immediate and catastrophic consequences for the populace.

Mansfield Oil, a fuel distributor, has warned its customers to take fuel savings measures and to place their orders early. The company said the supply of gasoline is currently very thin along the closed pipeline, and that it was trucking in supplies from the coast to meet demand. The company said it was treating the situation "with the same importance and urgency as a natural disaster."

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silverer's picture

Screw it.  Most people I see drive around aimlessly looking for something to do to entertain themselves.  Let 'em walk.

Manthong's picture

If that gasoline pipeline ran under the Missouri river near the Standing Rock Reservation in North Dakota, it could have made for some real Injun firewater.

 

 

oops's picture
oops (not verified) Manthong Sep 16, 2016 9:09 PM

America is in deep doo-doo. http://wp.me/p4OZ4v-3z

JRobby's picture

Where is Joe the Plumber?

jeff montanye's picture

off topic but the hillary trump guns post is not navigable.  is it being attacked or is this a zero hedge problem?  somehow i think the former.

WordSmith2013's picture
Technospheric Breakdown: Ongoing, Ubiquitous and Unstoppable

 

http://cosmicconvergence.org/?p=3717

 

Why is the world rushing headlong into environmental armageddon?
Ghost of PartysOver's picture

Not he first time this has happened.  Refining problem a few years ago from a hurricane casued the same issues with supply.   A PITA for a week or so then all back to normal.  Nothing to be concerned about unlike a HRC Pres or DB imploding.

Theosebes Goodfellow's picture

I'm curious if they are going to hang the gas price gougers by the lamp posts this time? You know that every station affected is going to jack prices way the fuck up. I say let them, and then hang them from the street lights when it's over. That industry needs a turnover in retailers anyway.

 

SafelyGraze's picture

never even knew there was a gas pipeline through alabama.

that's the great thing about infrastructure events.

they teach you that there is an infrastructure.

Tarzan's picture

I'm guessing everyone will find all the gas they need,

at a higher price....

Handful of Dust's picture

This is why one must ask why Soweto spent all those Billions on war and foreign handouts while America's infrastructure is crumbling.

All those jobless Americans -- black and white -- should ask themselves why the Democrats also sent their jobs to other countries.

Whoa Dammit's picture

Atlanta gas stations are starting to run out. There was a line around the building of cars waiting for gas this afternoon at the Alpharetta Sam's.

http://www.fox5atlanta.com/news/205978621-story

Odin McHaggis's picture

you actually believe Americas problems are D vs. R ? This fucking idiot has bought into the bullshit . 

dunce's picture

Obama says we don't need no stinkin pipelines. We have wind and solar and electric cars.

dunce's picture

This is community at it's best, sorry it does not get better than this. As usual liberal socialists will claim that we did not spend enough. Moar, forward, kill babies, have anal sex in a safe space, save the whales, hug a tree, smoke some dope, destroy the fossil fuel industry, more debt, elect more liberals, burn down the city, rob the drug stores, kill the cops.

TheMeatTrapper's picture

I wish. One of the conditions of the State of Emergency orders is a 'no price gouging' order. While this sounds good, in reality it causes widespread shortages. When the price is artificially suppressed there is no incentive to conserve so hoarding and gas runs occur. If market forces were allowed the price would rise and people would buy as needed. The gas would be expensive but available in critical situations. 

 

When a man has to rush a pregnant wife to the hospital and they are stuck because theres no gas, he would be glad to pay 10 bucks a gallon. 

Of course, most people dont realize that until its too late. Till then the herd gets emergency orders and price controls.

We love Big Brother!

thesonandheir's picture

Probably used shitty Chinese steel and Mexican welders.

Seen it all before.

SimplePrinciple's picture

Deleted--Meattrapper said it quicker and better.

larz's picture

Yeah wait til Mohamed the match shows up

zeronetwork's picture

Let's see how people react when SHTF

auricle's picture

How will this affect the markets come Monday? 

froze25's picture

Dutche Bank imploding combined with Hillary is truly Armageddon, it would be a economic collapse with a police state operating under "emergency powers". That Crazy lady can't be president. Trump 2016

Yukon Cornholius's picture

This article could be summed up thusly....BUY GAS!

SimpleJackBlack's picture
SimpleJackBlack (not verified) oops Sep 17, 2016 11:11 PM

“We have a contingency plan where we have moved gasoline over to the other line it normally carries diesel and fuel jet and we're moving gasoline to all points on our system,” said Steve Baker with Colonial Pipeline.

Just another excuse to scare the public and raise prices.

Low oil prices with high gas prices...

Just sounds like they wanted to boost the spread.

espirit's picture

Yet, a few transformer failures on EBT day at the local Walmarts will create havoc.

Go. Anomalies!

JackT's picture

Long East Coast Pokemon Go!

ufos8mycow's picture

"You don't need gasoline to vote for Hillary Clinton." - CNN

glenlloyd's picture

doesn't sound like a problem for diesel fuel users...

Archibald Buttle's picture

thank you for downloading the new upgrade to your OS, hanjin 1.1

NoDecaf's picture

250k gallons already lost... An Olympic size pool holds 550k gallons.

Something doesn't add up.

Half a pool's worth spilled and its panic time for the whole east coast?

azusgm's picture

The spill is not the issue. Turning off the spigot while repairs are made is the disruption.

NoDecaf's picture

"As CNN reports, The major pipeline, one pipe of which has been severed,"

One.... Pipe

Wulfkind's picture

**ahem**

"Doctor....how could he be dead?  I mean....only ONE little blood vessel burst in his brain.  ONE....VESSEL ! "

You need to read up on JIT, my friend.  Just In Time Inventory.

Or read Frank Herbert's "Dune".  "The Spice Must Flow ! "

Wulfkind's picture

By the way......maybe those Indians in North Dakota have a point after all.

 

ZD1's picture

Not having gas to run your car also makes a point.

Wulfkind's picture

What EVER did we all do when it wasn't nothing but horses and our own feet ?

You do know when you factor in the average time it takes during the typical morning commute when you are CRAWLING in stalled traffic both coming and going and even going to the store that it turns out the average speed is close to what you get when you walk.

I'd bet a lot of our problems such as obesity and diabetes would magically go away if we weren't sitting on our asses in our horseless carriages everyday, bitchng about the other driver and stuffing our faces full of McDonald's.

 

TheMeatTrapper's picture

Diesel is transported in the second pipeline next to the first. They are looking at options to pump gas through pipe #2. Not sure if that is happening but it was mentioned as an option on a longer outage.

Adahy's picture

It is. It's already in our fucking groundwater. I live too close to it. Won't drink from my well. I assure you that the spill is much larger than being reported. I have overheard many of the workers saying so. I work security for one of the places they are staying. At least 400+ people are working on this, not counting the EPA.
No worries though, it's in a wildlife management area...

TheMeatTrapper's picture

Im in Hoover. Heard somilar things. I heard one guy who lives next to the WMA say he was afraid because hise basement sometimes gets water on it and if gas is in the eater his home could blow up. Hope everything works out for you. I know that the Highway 280 water intake is upstream from the spill, but not sure if any municipal intakes are downstream from the spill. 

Waiting to hear of the Cahaba river keeper reports any contamination.  

in4mayshun's picture

About the ONLY good thing about all the tree hugging granola nuts in Ca is their zeal for Mother Nature. If a spill like that happened here, you'd have lesbians running down gas workers with their Prius'.

Verlorenes Geld's picture

That's a combo fetish - trampling AND voyeur lesbianism.

Mark Urbo's picture

We need Trump, we need real infrastructure building..

 

..not the happy horseshit that O-hole promised and then laughed at shovel ready jobs while pissing money away on leftist policies and bullshit green energy - should hang him from the DC Monument for future generations to she as the Anti-American POS failure he is...

hibou-Owl's picture

The asset is most likely quite functional (capacity, delivery), what needs to be asked is the reliability.
The failure needs to be analysed instead of just asking for instrastructure spend (that's a throwaway attitude), questions need to asked about the operators asset strategies like corrosion control, valve testing, and preventative maintenance.

Or were those guys part of the EPS boost, to the benefit of the CEO.

HedgeJunkie's picture

What do you do when there's a gasoline glut, an oil glut, and a fall in prices?

Shut off the supply.

auricle's picture

It's been awhile since a refinery or pipleline blew up to drive prices up. Only surprise is it took this long. 

Archibald Buttle's picture

just wait til the "unplanned" ones start happening in the ME. that'll make things interesting.

JRobby's picture

Desperate people do things.

https://www.google.com/amp/abcnews.go.com/amp/US/states-facing-gas-short...

Fed / Globalists do enjoy the manufacturing of "the every man for himself show". Laughing at your own jokes is a sign of narcissistic minds.

In other news, lets kill all the people. 

http://abcnews.go.com/US/florida-fertilizer-plant-sinkhole-reportedly-le...

Or just not enough people to watch things properly after all the job cuts? Same thing.

tarsubil's picture

I'm not sure this is how to do it. There is no gas to buy in my area. Hence, I'm not driving or consuming. I'm not going to make up for this consumption and drive twice as much when gas is back. Consumption is going to go way down temporarily and add to the glut. Gas prices are going to crash after this is over.