Storm Alert Update – Harvey Aftermath

Our thoughts at Mansfield are with those who have affected by Tropical Storm Harvey. Mansfield is committed to supporting the recovery efforts in the area. If you would like to provide aid, please join us in supporting the Red Cross as they help those in need because of the storm. If you’d like to donate, please click here.

As Tropical Depression Harvey moves north and begins pouring out rain over Tennessee, the damage assessment begins in Houston and surrounding areas. Over 4.5 MMbbls of refinery capacity, 25% of total U.S. refining capacity, remains offline, though that number is lower than the 5 MMbpd (30%) offline capacity we saw at the peak of the storm. Fortunately, refineries in the Corpus Christi area have so far seen minimal permanent damage from the storm, so restarts are beginning to bring product into the area.

More severe now is the slowdown in pipeline flow experienced from the lack of product originating in East Texas. The Colonial Pipeline was forced to shut down operations until more product can be originated into the pipeline. The diesel/jet fuel segment of the pipeline was shut down yesterday, and the pipeline announced the gasoline segment would be shutting down this morning.

The Colonial Pipeline supplies product from the Gulf Coast to the entire Southeast, up through Maryland, terminating ultimately in New Jersey. The Northeast is predominantly supplied by local refineries and imports from Europe, so those markets will not be affected significantly by the outage. The Colonial outage is only temporary, until enough product is created in the Gulf to fill the pipeline again. Once flood waters clear enough to restart refineries in Port Arthur, Beaumont, and Pasadena, the pipeline will resume operations.

Tropical Storm Irma continues to strengthen in the Atlantic. Forecasts show the storm hurtling towards the Lesser Antilles (east Bahamas) over the coming week, but the precise direction is unknown. Many forecasters show the storm heading north towards the East Coast of the United States, while others show it moving through the Lesser Antilles into the southern Gulf area. Few expect the storm will impact the Houston area. More will be known about the storm in the coming week.

Mansfield continues to work around the clock to help our customers fuel during the storm. If you have any questions or need to secure supply in the Gulf area or in the Southeast along the Colonial Pipeline, please reach out to your sales rep or customer relationship manager for more information about ordering product. Please place orders 48-72 hours in advance whenever possible, to allow time to secure supply and freight during the shortage.

Code Red (Areas with significantly reduced or unavailable supply)

Beaumont, TX

Dallas/Ft Worth, TX

Houston, TX

San Antonio, TX

Colonial Pipeline Markets (Mississippi through Maryland)

 

Code Orange (Areas with limited supply availability)

Austin, TX

Buda, TX

Corpus Christi, TX

Edinburgh, TX

El Paso, TX

Harlingen, TX

Odessa, TX

Waco, TX

Lake Charles, LA

Baton Rouge, LA

 

Code Green (Fully operational)

Brownsville, TX

Tank Maintenance Alert:  If your company has underground storage tanks in the impacted zones, make sure you’re familiar with the EPA’s safety recommendations for returning the tank to service. NACS Online has compiled the information you need to make sure that no further damage comes to your tank. Click here to learn more. Contact your Mansfield sales representative if water pump-outs and tank cleanings are necessary.

 

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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