There is currently no information on when pipeline service will be restored, and “the number of days the line is out of service is critical,” Tom Kloza, global head of energy analysis for the pipeline service. oil price information, which tracks gas. prices at 140,000 US stations, told CNN Business.
Colonial Pipeline executives fully recognized the security breach, which temporarily halted all pipeline operations and impacted IT systems.
“The greatest concern is with the coastal states of Georgia north of the Delmarva Peninsula,” Kloza said. He pointed out that the supply of the Northeast can easily be supplemented by foreign imports of gasoline, but that several other states do not have this advantage. “Tennessee is also a major supply concern, as it often runs out of gasoline under normal circumstances,” he said.
Andy Lipow, Houston-based petroleum consultant and chairman of Lipow Oil Associates, stressed the timing is critical. “Two days can be made up in an orderly fashion,” he said of the current shutdown. However, five days could be a much bigger blow to logistics.
The national average price of regular gasoline is already $ 2.94 per gallon, up more than 60% from a year ago when prices and demand bottomed out. The national average could exceed $ 3 a gallon this summer and even rise if hurricanes hit the Gulf Coast or there are additional disruptions to supply.