Power outages at hundreds of gas stations and a distribution bottleneck due to flooding damage and power loss has caused a gasoline shortage in the New York metropolitan area that may not be cleared up for at least a week, according to industry experts.
What was a problem for drivers when Super Storm Sandy ended two days ago has become a nightmare for frazzled motorists who find themselves in gas lines that can stretch on for hours. Some lines were hundreds of cars long in sections of New Jersey and New York Thursday, and in a number of locations police monitored the lines which interfered with traffic flow in some areas.
The problem is not gasoline supplies, but the ability to distribute it, especially from the critical terminal area around Linden, N.J., which lost power and was hit by storm surge. An estimated 75 percent or more of the gas stations in New Jersey were closed either because they had no gasoline, no power or both, said Sal Risalvato, executive director of the N.J. Gasoline, Convenience, Automotive Association. His organization represents about 1,000 gasoline stations in N.J.
“What I’m seeing is there’s a combination of problems. Power is at the root of it. That means gasoline that is already in inventory, already refined in those big tanks you see along the side of the turnpike, they can‘t get that gasoline into the delivery trucks without power,” said Risalvato.
Those “white tanks” along the New Jersey turnpike are gasoline terminals, owned by a number of companies, and the question for the industry is how quickly can normal operations resume after power is restored. A number of New Jersey based companies, like NuStar [NU 39.24 -0.06 (-0.15%) ] and Shell’s Motiva, reported that the storm surge drove water into the terminal areas, and it is unclear when they will be operational. One NuStar Energy executive estimated the marine terminals at his site could take four to six weeks to repair. – CNBC
World Events and the Bible: This is one of many reasons you should always have some stock of food and any other resources you may need during time of trouble…