Department of Energy Approves Request for Release of Crude from Strategic Petroleum Reserve

U.S. Secretary of Energy Samuel Bodman approved a request today (October 1, 2008) from Governor Sonny Perdue for additional releases from the Strategic Petroleum Reserve (SPR) to refineries in the Gulf Coast region.

“Today (October 1, 2008) the Department approved an additional release of up to 900,000 barrels of crude oil from the SPR for two refiners that have not been able to obtain adequate supplies due to the ongoing disruptions,” Secretary Bodman wrote. “With this additional release, the total amount provided from the SPR to refineries will be approximately 5.7 million barrels since September 3, 2008.”

Governor Perdue asked for the additional releases on Monday after hearing that refineries may have excess capacity as they restart their operations.

“These crude releases will help ensure that the Southeast continues to receive consistent fuel supplies as we continue to see more stations receive fuel and lines shorten,” Governor Perdue said. “I appreciate the Administration’s quick response and their concern for the fuel shortages we have experienced.”

Out-of-state haulers

After yesterday’s announcement that the Department of Revenue will grant temporary waivers for out-of-state haulers to bring in supplies to Georgia, the state has identified new suppliers that are bringing in at least 150,000 additional gallons of fuel per day. That number could grow as additional suppliers are identified in other states that have excess capacity that they can bring to Georgia.

These supplies include both regular fuel and diesel, and will be distributed throughout the state based on identified acute shortages. Diesel will be directed to any first responders and school systems that are seeing low supplies and to the state’s major agriculture centers so that farmers continue to have a strong supply available.

The DOR temporary waiver allows out-of-state haulers that do not hold a current Georgia motor fuel license to bring supplies into Georgia as long as they apply for a Georgia license within 72 hours. These haulers would normally have to apply and be granted a license before coming into the state.

DOE Update

The Department of Energy also released an update on the recovery of fuel production in the Gulf Coast.

Power outages – Outages are now down to just 35,000 people without power in Texas. Crews are making rapid progress restoring power – about 154,000 people were reported without power on Monday.

Percent “shut-in” – The U.S. Department of Energy reports 57.1 percent of crude oil production capacity in the Gulf of Mexico is offline. This is a slight improvement from Monday, when 57.4 percent of capacity was out.

Refineries – Only one refinery remains completely shut down, and only three refineries are considered “restarting”. This is significant progress as almost all refineries are either back to normal or seeing reduced production.

These figures above come from the Department of Energy’s daily situation report. The complete report is available at: http://www.oe.netl.doe.gov/docs/2008_SitRep_21_Ike_100108_12PM.pdf .
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Colonial Pipeline Returns to Pre-Hurricane Delivery Rates

BUSINESS WIRE --Colonial Pipeline yesterday achieved the same flow-rates for gasoline deliveries as the pipeline managed before Hurricanes Gustav and Ike hit the Gulf Coast refining region earlier this month.

After each of the hurricanes, Colonial’s pipeline quickly returned to full capability. However, supply shortages nonetheless occurred as a result of damage and shutdowns suffered by Louisiana and Texas oil refineries impacted by the hurricanes.

The refineries’ reduced output has resulted in market shortages and gas lines in many markets served by pipeline systems in the Southeast. Colonial is making every effort to support its shippers as they try to restore market stability.

The Colonial Pipeline system begins in Houston and crosses the South and East before terminating at the New York harbor. Colonial is a common carrier, meaning it does not own the fuels it transports but delivers them at the direction of its customers.

Deliveries within specific, local markets are determined by the terminal operators Colonial serves.

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Governor Releases Monday Fuel Update

Governor also sends letter to President Bush asking for release of crude from reserve

Governor Sonny Perdue today released the latest information on fuel production from the Gulf of Mexico:

Power outages – There are still more than 154,000 people without power in Texas. Crews are making rapid progress restoring power – about 415,000 people were reported without power on Friday.

Percent “shut-in” – The U.S. Department of Energy reports 57.4 percent of crude oil production capacity in the Gulf of Mexico is out. This is a slight improvement from Friday, when 59.3 percent of capacity was out. On Monday, September 22, 89.2 percent of capacity was out.

Refineries – Only two refineries remain completely shut down, and three additional refineries are “back to normal” compared to Friday’s report.

On September 27, the Department of Energy (DOE) announced that it is delivering 500,000 barrels of emergency exchange oil to Marathon’s Midwest refineries via the Capline.

Also today, Governor Perdue requested President George W. Bush direct the Department of Energy release a significant amount of crude oil from the Strategic Petroleum Reserve (SPR).

“As President Bush and Congress work on a plan to rescue our financial markets, I urge them to also focus on our fuel shortage in the Southeast,” Governor Perdue said. “As refinery capacity is returning to pre-hurricane levels, I believe a surge in crude from the Reserve would bridge the gap until full production resumes and lessen the impact of shortages on the daily lives of our citizens.”

To date, DOE has released more than 4 million barrels of oil from the SPR. While it would take time for the crude to be processed by refineries and shipped to the Metro Atlanta market, release of the reserve would ensure fuel supplies continue to rise.

More than 1,000 Georgians have used a new tool at the Georgia Environmental Authorities Authority’s website that provides drivers with information about gas prices and gas availability. Consumers can access this information by going www.gefa.org and looking under the News and Notices section.

Some practical fuel efficiency tips for drivers include:

· Drive sensibly: Speeding, rapid acceleration (jackrabbit starts), and rapid braking lowers gas mileage.
· Choose the right vehicle: If you own more than one vehicle, drive the one that gets better gas mileage whenever possible.
· Decrease speed: Gas mileage decreases rapidly when driving more than 60 miles-per-hour.
· Avoid idling: Idling gets zero miles per gallon. Cars with larger engines typically waste more gas while idling than cars with smaller engines.
· Commute alternatives are also a useful way to conserve fuel, including telework, carpool and transit options, and flexible work schedules. More information is available about commute alternatives at www.CleanAirCampaign.com.

These figures above come from the Department of Energy’s daily situation report. The complete report is available at: http://www.oe.netl.doe.gov/docs/2008_SitRep_20_Ike_092908_12PM.pdf .

Letter to President Bush:

September 29, 2008
The President
The White House
Washington, D.C. 20500

Dear Mr. President:

As you are personally aware, over the last month we have seen Hurricanes Gustav and Ike crash into the United States Gulf Coast. These natural disasters devastated coastal areas in both Texas and Louisiana, damaging the lives of citizens in both states. Under your direction, the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) have worked tirelessly to help residents pick up the pieces. Our thoughts and prayers remain with these citizens as they begin to rebuild their lives.

While the damage on the Coast was extensive, the ripple effect of the direct hit to the petroleum industry is still impacting the lives of citizens around the Southeast. In Georgia, which is almost completely reliant on fuel transported from refineries in the Gulf via pipeline, we are particularly impacted by outages in the fuel supply chain.

I have watched with interest as you and Congress continue to work around the clock to rescue the financial markets and slow the impact of banking failures on the U.S and global economies. As Congress moves to vote on the rescue plan, I would ask that you also focus your attention on the fuel shortage in the Southeast that is impacting state and local economies. Gas stations with no fuel in the ground coupled with long lines at stations with current supply have become commonplace in Metro Atlanta and other places around the state. It is obvious that we are facing a true gap in the supply chain and I ask that you consider releasing a significant amount of crude oil from the strategic petroleum reserve (the Reserve) to refineries in the Gulf to help bring the system back on line.

I would like to thank you for your move earlier this month to make crude oil supplies from the Reserve available to the market. Timely releases have lessened the impact of production losses in the Gulf. Now, as refinery capacity is returning to pre-hurricane levels, I believe a surge in crude from the Reserve would bridge the gap until full production resumes and lessen the impact of shortages on the daily lives of our citizens.

In Georgia, we have made decisive moves to curb demand and assist distributors as they work to increase supply. My administration worked closely with the Environmental Protection Agency (EPA) and Administrator Johnson to secure three different fuel standard waivers. Those waivers are allowing distributors to more easily import additional supplies. We have issued an executive order activating Georgia’s price gouging statues, and have eased requirements on the size and weight of fuel shipments and the number of operating hours for trucks bringing supply into the state. We have teamed up with the private sector to provide information to our citizens about the realtime locations of available fuel. I continue to encourage Georgians to conserve gas by teleworking, carpooling, using mass transit and other measures to help us through this short-term supply deficiency.

While these actions have helped, I am confident that a release from the Reserve is critical and will give our citizens confidence that additional supplies are forthcoming. Thank you for your time and attention on this important matter.

Respectfully,
Sonny Perdue

Cc: Secretary Samuel W. Bodman
Georgia Congressional Delegation

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Chambliss, Isakson Applaud EPA’s Swift Decision to Support Governor Perdue’s Request to Provide Relief from Gas Shortage

U.S. Senators Saxby Chambliss, R-Ga., and Johnny Isakson, R-Ga., today applauded the decision by the Environmental Protection Agency (EPA) to support Georgia Governor Sonny Perdue’s request to temporarily extend relief from the federally enforceable sulfur gasoline requirements in the 45-county fuel control area. The waiver granted by the EPA is effective immediately and will help ease the gas shortage in Georgia.

“I applaud the swift decision by the folks at EPA to uphold Governor Perdue’s request,” said Chambliss. “Extending relief from this requirement in the short term will make more gas available in the fuel control area until supplies can be replenished.”

“With the decrease in supplies of gasoline due to recent hurricanes, it is absolutely critical to temporarily extend relief from the sulfur gasoline requirement until supplies are back to normal,” Isakson said. “I am thankful EPA acted on this request quickly and hope this will help remedy the current situation.”

Chambliss and Isakson sent a letter to the EPA today in support of Governor Perdue’s request. Text of the letter is below:

Mr. Stephen Johnson, Administrator
United States Environmental Protection Agency
1200 Pennsylvania Avenue NW
Washington, DC 20460

Dear Administrator Johnson:

We are writing in support of Governor Sonny Perdue's request for an extension to relief provided from the federally enforceable Georgia SIP sulfur gasoline requirements in the 45 county fuel control area. As you know, this request comes as a result of a severe shortage of Georgia SIP sulfur gasoline caused by Hurricanes Gustav and Ike.

We urge your immediate approval of Governor Perdue's request and ask that, should the Governor need to make additional requests, you act upon them as expeditiously as possible.

Thank you for your attention to this important matter and we stand ready to assist you in any way we can.

Sincerely,

Saxby Chambliss Johnny Isakson
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Gasoline Shortage or Supply Problems?

Note: If there is no shortage, why the spike in gasoline prices? Read on to find out why.


Shortages, Price Hikes Follow Ike in Southeast

By Joe Benton
ConsumerAffairs.com

September 16, 2008

Gasoline stations throughout the Southeast and are reporting sporadic shortages and price spikes as the surge in average pump prices leveled off at $3.854 a gallon......

Read the story.

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New Survey Finds Georgians Support Increased Access to Domestic Oil and Natural Gas Resources

PRNewswire-USNewswire/ -- Georgians are concerned about the price of gasoline and the majority of them support increased access to domestic oil and natural gas resources, a new survey finds.

"This research confirms what every recent poll has shown. Georgians, like Americans everywhere, are feeling the crush of high gasoline costs and support increasing domestic supplies of oil and natural gas," said Ric Cobb, executive director of the Georgia Petroleum Council (GPC). "Sadly, some in Congress are ignoring this groundswell and blocking a balanced energy policy that includes development of America's vast natural resources, along with more conservation, energy efficiency and increased supplies of all sources of energy."

The poll was conducted by telephone between July 10 and July 27, 2008 by Harris Interactive and commissioned by API. The survey of 501 registered Georgia voters who are likely to vote in the upcoming presidential election found 66 percent of those surveyed said they somewhat or strongly support increased access to domestic oil and natural gas resources. Only 23 percent of respondents said they opposed increased access. An overwhelming 97 percent said they are somewhat or very concerned about the price of gasoline.

"America's oil and natural gas companies are ready to work with government at all levels to enact a comprehensive energy plan that includes increasing domestic supplies while protecting our environment," said Cobb. "It's time for Congress to lift the ban on offshore drilling."

Currently, Congress is blocking the exploration and development of abundant oil and natural gas reserves beneath non-park federal lands and coastal waters. Advanced technology means America's oil and natural gas companies can efficiently explore for these resources while protecting the environment. Based on federal government data, these resources could provide enough oil to fuel more than 65 million cars for 60 years and enough natural gas to heat 60 million homes for 160 years.

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Infinity Insurance Extends $1.99 Gas Promotion

PRNewswire-FirstCall/ -- For the second time in three weeks, some Atlanta drivers will enjoy $1.99/gallon gas thanks to Infinity Insurance.

As a continuation of its Refueling Summer event, Infinity will host $1.99 gas on July 23rd, from 11am-2pm in Atlanta, GA. As before, the location will be announced on a special website, www.RefuelingSummer.com, just prior to the event. Area drivers lucky enough to make it to the event may pump up to 10 gallons of gas at the $1.99/gallon price subsidized by Infinity Insurance. As one customer put it from the July 10th promotion, this savings at the pump, "could represent a meal on the table."

Infinity pumped over 3,200 gallons of gas in its first Refueling Summer event and hopes to match that this time around. "These events simply give us an opportunity to tell our story. We've been saving customers money on auto insurance in Georgia for almost 40 years, and now we're taking that savings to the pump," says Dan Davis, a manager with Infinity.

New Federal Law Mandates Child Resistant Portable Gasoline Containers

Children and gasoline don't mix. With the passage of the Children's Gasoline Burn Prevention Act, an additional layer of fire safety and burn protection has been added for families across the country.

President George W. Bush signed the Act into law which requires portable gasoline containers manufactured for sale in the U.S. on or after January 17, 2009 to conform to child resistance safety requirements.

Gasoline containers will join containers with other flammable liquids, such as turpentine, charcoal lighter fluid, and torch fuel that are required to have child resistant closures. CPSC has jurisdiction over child resistant product packaging.

"Families who purchase gasoline cans with child resistant gas caps and who keep all flammable liquids out of the sight and reach of children are improving the safety of their homes," said CPSC Acting Chairman Nancy Nord.

CPSC recommends these safety tips for consumers.

Buy a gasoline container that is child resistant.

Place a gasoline container in a well ventilated, cool area.

Never store gasoline or other fuel inside the house, in the basement, or near a fuel-burning appliance, open flames, pilot lights, stoves, heaters, electric mowers, or any other sources of ignition.

Never smoke near gasoline.

Never carry gasoline in the trunk of the car. Escaping vapors can easily ignite.

Keep gasoline, kerosene and other fuels out of the reach of children. Never permit children to play with matches or fuel.