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Americans Face Elevated Winter Power Outage Risks From Tight Fuel Supplies, Faltering Grid: Report

December 16, 2022

A Boston-area resident shoveling snow. (AP Photo/Josh Reynolds)

Americans Face Elevated Winter Power Outage Risks From Tight Fuel Supplies, Faltering Grid: Report

As the snow flies and temperatures plummet, regulatory agencies and analysts alike warn that residents in multiple U.S. states are at an elevated risk of dangerous winter blackouts.

States such as Texas and North Carolina, and also the Great Lakes and New England regions are in the highest risk category, according to a report from the North American Electric Reliability Council (NERC).

Meanwhile, a “large portion” of the U.S. power grid is at risk of insufficient electricity supplies during peak winter conditions, the agency concluded in the same analysis.

Although climate change advocates claim that severe weather events are the primary culprit, energy insiders say tight fuel supplies and an outdated electric grid play a critical role in potential blackouts.

Epoch Times Photo — People take shelter at Gallery Furniture store after winter weather caused electricity blackouts in Houston, on Feb.18, 2021. (Go Nakamura/Getty Images)

Conservative estimates this year put the cost of critical power grid and infrastructure upgrades at $4 trillion, with the use of supplemental nuclear power; the price tag jumps another $500 million without nuclear energy.

The Biden administration approved a $13 billion stopgap measure on Nov. 18 to “modernize and expand” the power grid. However, people in the energy industry say it will take months or years for U.S. residents to see the difference.

Falling Behind

“There is a significant gap to upgrade aging grid infrastructure to meet net-zero mandates and maintain reliability, and we are running out of time,” analyst Kim Getgen told The Epoch Times.

Getgen is the CEO and founder of Innovation Force, which tackles complex issues such as America’s energy crisis. She says the Biden administration’s infrastructure investment is a good start, but it’s exactly that, just a start.

…click on the above link to read the rest…

Panama’s Inflation Upheaval Causing Food, Fuel Shortages

July 23, 2022

Panama’s Inflation Upheaval Causing Food, Fuel Shortages

It started as a teacher’s strike to protest the high cost of gas, but it’s now the largest civil unrest in Panama since the end of dictator Manuel Noriega’s reign in 1989.

With fiery roadblocks disrupting commerce and causing shortages of food, fuel and other supplies, the Panamanian government has entered a new round of talks meant to placate the masses and avoid further economic damage, which some assess at $500 million and counting.

President Laurentino Cortizo had already made two major moves to quell the unrest, only for it to continue.

On June 11, he widened subsidies to extend a freeze on gas prices to all consumers, capping the price at $3.95 a gallon, which was 24% lower than the end-of-June price. He also promised to pursue price caps on 10 basic goods, including pasta, beef loin, vegetable oil and canned sardines.

With protestors demanding economy-wide price cuts and increased spending on education and health care, the demonstrations continued, not only in the form of marches and strikes but also roadblocks of major highways, including the internationally-critical Pan-American Highway. The Panama Canal has thus far escaped disruption; strikes by canal workers are illegal.

Last weekend, Cortizo announced a deal by which the government would reduce the price of gas again — this time, to $3.25. That price cut was offered in exchange for an assurance that the roadblocks would be cleared while discussions of price relief on medicines and other essentials continued.

However, on Monday, leaders of the National Alliance for the Rights of the Peoples (Anadepo), a protestor coalition representing labor unions, civic organizations and indigenous people, announced they were breaking their commitment, saying they had made the deal under pressure. Some groups said they weren’t represented in the negotiations.

…click on the above link to read the rest of the article…

Starving Sri Lanka Shortens Work Week to Give People Time to Grow Food

June 20, 2022

Starving Sri Lanka Shortens Work Week to Give People Time to Grow Food

Buddhika Weerasinghe/Bloomberg via Getty Images

Sri Lanka’s federal government on Monday approved a proposal that would shorten the work week of most public sector staff to four days so that workers will have time to farm their own crops, Reuters reported Tuesday, noting the measure aims to combat Sri Lanka’s worsening food shortages caused by a recent economic crisis.

“Sri Lanka’s Cabinet late on Monday approved a proposal for public sector workers to be given leave every Friday for the next three months, partly because the fuel shortage made commuting difficult and also to encourage them to farm,” Reuters reported on June 14.

“It seems appropriate to grant government officials leave of one working day … to engage in agricultural activities in their backyards or elsewhere as a solution to the food shortage that is expected,” the Sri Lankan government information office said in a statement.

The shortened work week will not apply to public sector employees in “essential” fields, such as health or education, Sri Lanka Cabinet Minister Dinesh Gunawardana said on June 13.

In addition to the four-day work week, Sri Lanka’s federal government approved a program on Monday in which “public servants can apply for five year no pay leave to go abroad for employment opportunities [sic],” Sri Lanka’s Daily Mirror reported on June 14.

“It will not affect their promotions or retirement upon return,” the newspaper said of the work-abroad initiative.

Sri Lanka’s public sector employs roughly one million people, according to Reuters.

The Sri Lankan federal government was forced to give most public sector staff an unplanned day off on June 13 after realizing that worsening power outages and fuel shortages nationwide would make it nearly impossible for the employees to travel to work or conduct business as usual.

…click on the above link to read the rest of the article…

IEA chief warns of summer fuel shortages and a triple energy crisis that will outstrip the oil shocks of the 1970s

June 1, 2022

IEA chief warns of summer fuel shortages and a triple energy crisis that will outstrip the oil shocks of the 1970s

gas station — International Energy Agency chief Fatih Birol has warned of a triple energy crisis that could be “much bigger” and longer lasting than the 1970s.

The US and Europe face fuel shortages as summer vacations get underway, the head of the IEA told Der Spiegel.
Fatih Birol warned of potential diesel, petrol, and kerosene shortages, and said the current energy crisis was worse than the 1970s.
“We have an oil crisis, a gas crisis and an electricity crisis simultaneously,” he said.

The US could see fuel shortages this summer once people start taking their vacations — and Europe could take a particular hit from the lack of supply, the head of the International Energy Agency has warned.

“When the main holiday season starts in Europe and the US, fuel demand will rise,” Fatih Birol told Der Spiegel. “Then we could see shortages — for example, in diesel, petrol or kerosene, particularly in Europe.”

Birol also told the German newspaper that the energy crisis now underway will be more severe and longer-lasting than the oil price shocks of the 1970s, given it’s applying pressure on three fronts.

“Back then it was just about oil,” he said in the interview published Tuesday. “Now we have an oil crisis, a gas crisis and an electricity crisis simultaneously.”

Oil prices spiked in 1973 and 1979 as the Yom Kippur War and the Iranian Revolution interrupted Middle Eastern crude exports. Geopolitical events have hit the market again in 2022, as western nations impose sanctions on Russia over its invasion of Ukraine.

…click on the above link to read the rest of the article…

Washington state gas stations run out of fuel, prep for $10 a gallon

May 20, 2022

Gas stations in Washington state are resetting their price boards to accommodate double digits in preparation for fuel prices potentially reaching $10 a gallon, according to a report.

The move comes as several gas stations in the Evergreen State ran out of fuel, the Post Millennial reported.

At the 76 gas station in Auburn, about 30 miles south of Seattle, gas pumps were reprogrammed so the display could indicate a price of at least $10 a gallon.

The displays were limited to single digits as recently as March, but the surging price of gas has led to the change.

A 76 spokesperson told the Post Millennial that the change did not necessarily mean the company was predicting gas prices would reach $10 a gallon.

The station in Auburn also sells race fuel, which is more expensive than the fuel that is used by ordinary citizens.

Race fuel costs more due to the high-octane, premium fuel that is required to enable the engine to have a higher compression ratio, giving it a more energetic explosion and improving the performance of turbocharger and supercharger engines.

Gas stations in Washington State have readjusted their pumps to display double digit gas prices, according to a report. — Gas stations in Washington state have adjusted their pumps to display double-digit gas prices, according to a report.

Motorists in the Evergreen State are also reporting that some gas stations have run out of fuel.

Washingtonians are also having to contend with gas stations that are running out of fuel.

Motorists who drive up to gas pumps in Kennewick, Pasco and West Richland are met with notes indicating that the station does not have any fuel to sell — except diesel.

On Facebook, local residents are reporting more than 10 gas stations that are out of fuel.

…click on the above link to read the rest of the article…

Pakistan Hit With Power Blackouts As It Struggles With Fuel Shortages And Technical Problems

April 19, 2022

Pakistan Hit With Power Blackouts As It Struggles With Fuel Shortages And Technical Problems

A once-in-a-generation inflation shock is rippling worldwide and has become a significant source of social and political instability in the weakest countries. Pakistan is the latest country to experience paralyzing inflation.

Bloomberg reports almost a fifth of electricity generation capacity is offline in the South Asian country because some power plants struggle to purchase liquefied natural gas and coal due to record high prices.

Pakistan’s energy costs have doubled to $15 billion in the last nine months ended February from a year earlier. The country has struggled with purchasing energy products to fuel its power plants since the conflict in Ukraine exacerbated commodity shortages, sending prices to record highs.

Miftah Ismail, appointed as finance minister by new Prime Minister Shehbaz Sharif, tweeted that 3,500 megawatts worth of power capacity are offline due to fuel shortages, and a similar amount is due to technical faults. The total capacity offline is 7,000 megawatts or about a fifth of the country’s total generation capacity.

The poor South Asian country is heavily dependent on imported energy, making it highly sensitive to price swings.

“Pakistan’s situation will not change in the near term since global dynamics are still the same.

“There have been forced outages to deal with the energy shortages,” said Samiullah Tariq, head of research at Pakistan Kuwait Investment Co.

High inflation has already led to a recent government change (so far peaceful). Still, it raises near-term policy turmoil even as the country faces fiscal challenges from soaring commodity prices.

It could only be a matter of time before rolling power blackouts, soaring food and fuel prices incite unrest. This is already happening around the world in the weakest of countries.

The tiny island nation of Sri Lanka in the Indian Ocean and Peru have already experienced unrest because of rapid inflation. It appears the dominos are already falling.

Asian country rations fuel

April 16, 2022

Asian country rations fuel

Sri Lanka’s government has been under fire over shortages in food, fuel, and other essential goods

Sri Lanka’s state-run Ceylon Petroleum Corporation (CPC) on Friday started rationing the amount of fuel available at pumps. The bankrupt country defaulted on its foreign debt payments this week, and food and energy shortages have triggered mass protests against President Gotabaya Rajapaksa’s government.

Motorists in cars, vans, and SUVs will be limited to 19.5 liters of fuel per purchase, while motorcyclists will be restricted to four, French state-media AFP reported. Motorists will also be banned from filling fuel cans.

The CPC controls around two thirds of Sri Lanka’s fuel market, with Lanka IOC – a local subsidiary of the Indian Oil Corporation – controlling the rest. Government officials told AFP that Lanka IOC would likely follow suit and introduce rationing at its own stations in the near future.

Filling stations across the country are running out of fuel, while cooking gas is also in short supply, with Litro Gas – Sri Lanka’s main distributor – saying it won’t have any available until Monday. Food has reportedly increased fourfold in price, and long queues for staples like rice, milk powder, and medicine have been reported.

The entire cabinet of Sri Lanka resigned earlier this month, leaving President Gotabaya Rajapaksa and his older brother, Prime Minister Mahinda Rajapaksa, to form a new government. Protesters, however, have continued to gather in the capital of Colombo, blaming the president for their economic misfortune.

Sri Lanka’s financial and humanitarian crisis was in part accelerated by the Covid-19 pandemic, as the island nation has lost revenue generated by tourism…

…click on the above link to read the rest of the article…

China peak diesel

November 22, 2021

China peak diesel

Fig 1: Aljazeera video on truck lines October 2021. Shortages could last for months
https://www.youtube.com/watch?v=Sy_uiSlgbIA

BBC reporting:
China rations diesel amid fuel shortages
29/10/21
Petrol stations in many parts of China have begun rationing diesel amid rising costs and falling supplies.

Some truck drivers are having to wait entire days to refuel, according to posts on social media site Weibo.

China is currently in the midst of a massive power crunch, as coal and natural gas shortages have closed factories and left homes without power.

And this latest issue is only likely to contribute to an ongoing global supply chain crisis, say analysts.

“The current diesel shortages seem to be affecting long distance transportation businesses which could include goods meant for markets outside of China,” said Mattie Bekink, China Director at the Economist Intelligence Unit.
https://www.bbc.com/news/business-59059093

Fig 2: Comparison Chinese Diesel prices – Brent spot prices

Images of queuing trucks are in stark contrast to what we find when googling for truck sales:

Fig 3: Line-up of new trucks for the Chinatrucks website
https://www.chinatrucks.com/statistics/2020/0221/article_9181.html

Let’s have a look at statistics from JODI https://www.jodidata.org/oil/

Fig 4: China’s diesel demand, refinery output, imports and exports

China’s refinery output of diesel started to hit a ceiling of 3.5 – 3.6 mb/d in 2014. Diesel consumption is a pretty good indicator for economic activities.

Fig 5: China National Petroleum Company: Diesel, gasoline, kerosene production

CNPC’s annual reports show diesel production peaked between 2011 and 2014 at 60 million tons (1.23 mb/d), dropping thereafter to an average of 54 mt pa.

In 2018, Reuters reported:

China’s diesel demand has peaked, gasoline to peak 2025: CNPC research
18 Sep 2018
BEIJING (Reuters) – China’s diesel demand has peaked and gasoline will peak in 2025, while natural gas demand will increase over the next two decades to feed a massive gasification campaign, according to a forecast released on Tuesday by a research arm of a state energy group.
https://www.reuters.com/article/us-china-energy-forecast-cnpc-idUSKCN1LY0Z0

…click on the above link to read the rest of the article…

China Rations Diesel Amid Nationwide Fuel Shortages

November 2, 2021

China Rations Diesel Amid Nationwide Fuel Shortages

British Army Begins Deliveries To Ease Fuel Crisis

October 4, 2021

British Army Begins Deliveries To Ease Fuel Crisis

Last week, British Army personnel were on standby as service station pumps ran dry across the country, forcing vendors to ration sales as a shortage of truck drivers strained supply chains of major oil and gas suppliers. AFP reports Monday that as many as 200 military tanker personnel have been deployed to alleviate the energy crisis.

Troops in military fatigue were spotted across London and southeast England, delivering various fuel grades to gas stations to alleviate fuel shortages.

“More than half of those who have completed training to make fuel deliveries are being deployed to terminals serving London and the south east of England, demonstrating that the sector is allocating drivers to areas most affected in this first phase from Monday,” a UK government spokesperson said.

UK Defence Secretary Ben Wallace said the fuel crisis is abating, and signs of stabilization were materializing.

“While the situation is stabilizing, our Armed Forces are there to fill in any critical vacancies and help keep the country on the move by supporting the industry to deliver fuel to forecourts,” Wallace said.

The Petrol Retailers Association (PRA), representing 65% of the country’s independent service stations, welcomed the news of military supporting efforts to resupply service stations but warned the soldiers were likely to have minimal effect.

PRA chairman Brian Madderson said 20% of the fueling stations in London and southeast England were out of fuel, and the rest of the country had adequate supply.

For two weeks, long queues of motorists at gas stations extended into city streets as people panic hoarded fuel due to the uncertainties of shortages.

Millions Of Chinese Residents Lose Power After Widespread, “Unexpected” Blackouts; Power Company Warns This Is “New Normal”

September 27, 2021

Millions Of Chinese Residents Lose Power After Widespread, “Unexpected” Blackouts; Power Company Warns This Is “New Normal”

Just yesterday we warned that a “Power Supply Shock Looms” as the energy crisis gripping Europe – and especially the UK – was set to hammer China, and just a few hours later we see this in practice as residents in three north-east Chinese provinces experienced unannounced power cuts as the electricity shortage which initially hit factories spreads to homes.

People living in Liaoning, Jilin and Heilongjiang provinces complained on social media about the lack of heating, and lifts and traffic lights not working.

There are several reasons for the surge in thermal coal, among them already extremely tight energy supply globally (that’s already seen chaos engulf markets in Europe); the sharp economic rebound from COVID lockdowns that has boosted demand from households and businesses; a warm summer which led to extreme air condition consumption across China; the escalating trade spat with Australia which had depressed the coal trade and Chinese power companies ramping up power purchases to ensure winter coal supply. Then there is Beijing’s pursuit of curbing carbon emissions – Xi Jinping wants to ensure blue skies at the Winter Olympics in Beijing next February, showing the international community that he’s serious about de-carbonizing the economy – that has led to artificial bottlenecks in the coal supply chain.

Whatever the reason, it’s just getting started: as BBC reported, one power company said it expected the power cuts to last until spring next year, and that unexpected outages would become “the new normal.” Its post, however, was later deleted.

…click on the above link to read the rest of the article…

Beirut Goes Dark As Economic Tailspin Sees Dire Fuel & Electricity Shortages

August 14, 2021

Beirut Goes Dark As Economic Tailspin Sees Dire Fuel & Electricity Shortages

Starting Wednesday night Lebanon’s Central Bank announced that fuel subsidies have been halted, already at a moment where there’s been scarcity of both gas and electricity. Fuel prices are expected to at least quadruple, leading to a national scramble for fuel, exacerbating rolling blackouts akin to what’s become the tragic “norm” of recent years in neighboring war-torn Syrian.

International reports are underscoring that the enduring economic crisis beginning in 2019 which sparked a year of mass protests and a currency crisis, and subsequent failed attempts to stave off total collapse amid a drastic “shock” change in government, are now coming to a head, sending already impoverished areas of the country of nearly seven million spiraling into steadily worsened conditions.

Regional director of humanitarian aid NGO Crisis Group, Heiko Wimmen, was cited in CNN as saying “This is obviously going to ripple through the whole economy.” He emphasized that seemingly overnight basic staples that support daily life have now become a “luxury”.

“For a large part of the population, electricity will become a luxury. Driving your car will become a luxury, too. Transportation will become a luxury,” Wimmen added.

The cutting of subsidies was expected, but still a “shock” nonetheless. Like everything else in Lebanon energy has been severely mismanaged, after already the government suspended lines of credit to fuel importers.

So the sudden liberalization of fuel prices meant whole villages, towns, and parts of cities were plunged into darkness overnight as not even generators could keep the lights on:

…click on the above link to read the rest of the article…

“Things Are Going To Get Worse” – Florida Gas Shortages Intensify As Dorian Becomes Category 3 Hurricane

August 30, 2019

“Things Are Going To Get Worse” – Florida Gas Shortages Intensify As Dorian Becomes Category 3 Hurricane

Hurricane Dorian strengthened to a Cat 3 storm Friday afternoon with 115 mph winds as Florida Gov. Ron DeSantis promised state troopers would escort trucks of fuel to areas along the east coast that could be directly in the storm’s path amid worsening fuel shortages, ABC Newsreported.

Following several seriously damaging hurricane seasons in recent years, stores and gas stations were already reporting outages of critical supplies like bottled water and gas on Thursday, and the situation only got worse on Friday, as even more gas stations reported running out of fuel.

Gasoline price-tracking app GasBuddy estimated that 31% of retail gas sellers in the Orlando-Daytona Beach-Melbourne area were dry as of Friday morning, according to Bloomberg.

✔

.@FLHSMV FHP State Troopers will provide escorts to fuel trucks to ensure they reach critical areas more quickly. We are working closely with the fuel industry to ensure there is an adequate supply of fuel statewide as Hurricane #Dorian approaches.

Despite being the third-most-populous state in the country, Florida doesn’t have a single fuel pipeline. The nearest one is a Colonial line that delivers to Bainbridge, Georgia. From there, gas is loaded onto trucks and shipped to gas stations. The state also relies on tanker deliveries for fuel, which could create serious problems if the storm leaves the state’s ports shut for days, BBG reports.

Florida Petroleum Marketers Association executive director Ned Bowman said trucks were lined up at wholesale fuel terminals. Two tankers carrying refined petroleum products were heading to a port in the Everglades near Fort Lauderdale. Despite this, Bowman said the supply situation was still “pretty good.”

…click on the above link to read the rest of the article…

Gasoline Prices Surge After Colonial Pipeline Shutdown, East Coast Fuel Shortages Loom

August 31, 2017

Gasoline Prices Surge After Colonial Pipeline Shutdown, East Coast Fuel Shortages Loom

Gasoline prices have exploded higher once again this morning – topping the Maginot Line of $2.00 for the first time since July 2015 – following reports that the main conduit for fuel from the Gulf to the East Coast has been shut due to Hurricane Harvey.

Motor fuel prices climbed as much as 6.6 percent in New York, advancing for an eighth session, while crude oil was little changed. Harvey has shuttered about 23 percent of U.S. refining capacity, potentially cutting fuel-making ability to the lowest level since 2008 and depriving the Colonial Pipeline of supplies.

Its operator was forced to shut the main diesel line late Wednesday and planned to halt its gasoline line Thursday, meaning motorists from Maine to Florida may soon see higher prices at the pump.

Colonial, which is the biggest single fuel transporter in the US, shipping more than 2.5m barrels a day on its line – or roughly one in every eight barrels of fuel consumed in the country – said in a statement late on Wednesday that its line carrying diesel and jet fuel would shut on Wednesday evening, followed by its gasoline pipe on Thursday.

And that sent front-month RBOB above $2…

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