Shortage due to Katrina

[IFRs]

Now that Katrina has devastated the Gulf coast, what are your thoughts on gasoline shortages on the east coast of the US? Colonial pipeline just shut down so there won't be much moving up the east coast. Several rigs are damaged or displaced, refining capacity can't be increased, refined products from overseas can't be increased easily.

 

[rmw]

It is going to get bad before it gets better.

There aren't enough tanker trailers to replace what one products pipeline can transport cross country, even if all the refineries came back on line instantaneously, which we all know isn't going to happen for a while.

Same with having refined products delivered to other ports. The infrastructure is not there to receive, store and distribute the fuel. Not enough tankers again.

It will be real interesting to see this one play out. Odes of 1973.

rmw