Supply Alert – Code Red
Last night, a pipeline pump station in California was taken offline due to a leak, resulting in fuel pipelines throughout the region being taken offline. The Watson pumping station feeds pipelines transporting fuel to Colton, CA and San Diego, CA. From there, fuel products would normally flow to Las Vegas, NV, and Phoenix, AZ. These product flows have halted until the problem can be isolated and repaired.
The leak is a salient reminder that large regions of the country can be subject to volatility based on one leak. Last year, a cyberattack against one company cut off massive quantities of fuel for the Southeast. Last week, a leak shut down the Plantation Pipeline in the Southeast. This latest outage demonstrates the fragility of America’s energy infrastructure, and the importance of being prepared during supply outages.
Mansfield is moving to Code Red in Southern California, Arizona, and Nevada until the pipeline is repaired and supply conditions improve. The region was already subject to tight carrier capacity, and this recent outage will force fuel trucks to travel greater distances to deliver fuel where the pipelines cannot. Customers are asked to provide 72-hrs notice for deliveries in these areas.
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