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Vietnam Gas Stations Start To Close Due To Widespread Shortages

Vietnam Gas Stations Start To Close Due To Widespread Shortages

While the US awaits with bated breath to see if there will be any diesel inventories after the midterm elections (see “Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left”), other countries are already seeing gas stations run dry. Take Ho Chi Minh City, the city known as Vietnam’s economic engine, whose gas stations are being forced to suspend operations due to shortages of the fuel.

Believe it or not, it is possible to have an even worse government response to an energy crisis than that of the US democrats, and Vietnam is it: a tangle of reactions to a constrained petroleum market – including government price controls and distributors’ decreasing profits – has worsened the country’s gasoline shortage, increasing the burden on domestic refineries.

While these refineries are moving to increase gasoline production, it will take time for Vietnam to fully solve the fundamental problems behind its petroleum crisis according to Nikkei Asia.

The government in mid-October called on two refineries to boost output to the maximum extent possible in a bid to meet domestic demand. The government also asked distributors to speed deliveries to gas stations. PetroVietnam, the country’s largest state-run oil company, responded by raising the operation rate of its Dung Quat refinery in the central province of Quang Ngai to 109% from 107%. A refinery executive said the rate can be pushed to 110% or even higher, should the government make further requests.

Oil refineries generally save some production capacity even when declaring they are running at 100%. When they crank up production during emergencies, their operation rate can surpass 100%…

…click on the above link to read the rest…

Dutch dilemma: What is Europe willing to do for more natural gas?

Dutch dilemma: What is Europe willing to do for more natural gas?

Modern global society is steeped in the idea of trade-offs, the notion that one must suffer losses to obtain desired gains. This prepares the way for disingenuous leaders to explain why sacrifices are necessary to reach supposedly exalted goals. Usually those sacrifices are made by the powerless in society; they are certainly not made by the leaders who call for sacrifices nor by the wealthy and powerful who benefit from them.*

This coming fateful winter season in Europe is likely to include a lively debate about whether the Dutch should make a perilous trade-off on behalf of an energy-starved Europe. So far, the Dutch have been firm about closing one of the world’s largest natural gas fields, Groningen, no later than 2024—even in the face of severe European gas shortages resulting from the loss of gas from Russian pipelines.

The reason for that firmness has to do with the damage earthquakes are inflicting on the buildings located above and around the field, earthquakes related directly to withdrawal of Groningen’s gas. In the northeastern part of the country, some 1200 earthquakes have severely damaged 27,000 buildings to the point that they are uninhabitable. About 3,300 structures have been demolished. A 2015 study reported that 152,000 homes need to be reinforced. As a result the government has been reducing gas withdrawals to mitigate the problem with an eye toward closing the field. Closing the field also comports with the government’s greenhouse gas reduction goals.

But, will the Dutch be able to withstand calls for increasing production from Groningen as the European winter arrives?

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

Germany Plans ‘Warm Up Spaces’ in Response to Gas Shortages

Germany Plans ‘Warm Up Spaces’ in Response to Gas Shortages

Sports arenas to be used to help people who can’t pay skyrocketing energy bills.

picture alliance via Getty Images

Cities across Germany are planning to use sports arenas and exhibition halls as ‘warm up spaces’ this winter to help freezing citizens who are unable to afford skyrocketing energy costs.

Bild newspaper reveals how the the nation’s Cities and Municipalities Association has urged local authorities to set aside public spaces to help vulnerable citizens in the colder months.

Germany has already seen its gas supply from Russia significantly restricted as a result of its support for sanctions and the war in Ukraine.

“We are currently preparing for all emergency scenarios for autumn and winter,” Jutta Steinruck, the city mayor of Ludwigshafen told Bild, where the Friedrich-Ebert-Halle arena is about to be converted into a warm up hall.

“Nobody can say exactly how dramatic the developments will be,” said Gerd Landsberg, the head of the Cities and Municipalities Association.

Landberg urged local municipalities to create “heat islands” and “warm rooms, where people can stay, even during a very cold winter.”

The western German towns of Neustadt, Frankenthal and Landau are also making similar arrangements, while others are planning to turn off lights outside public buildings as well as deactivating traffic lights at night to save energy.

As we highlighted last week, Germany’s largest residential landlord which owns around 490,000 properties is set to impose energy rationing that will cut heating to tenants at night in response to falling gas imports from Russia.

Germans have also been told to take fewer showers, wear more layers of clothing and avoid washing their clothes and driving their cars as often.

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

Germany Elevates Risk Level In Its “National Gas Emergency Plan” To Second-Highest “Alarm” Phase

Germany Elevates Risk Level In Its “National Gas Emergency Plan” To Second-Highest “Alarm” Phase

European natural gas and power prices surged after Germany triggered the “alarm stage” of its NatGas-emergency plan amid reductions in supplies from Russia, according to Reuters.

German Economy Minister Robert Habeck said Europe’s largest economy is in a severe energy crisis. He warned Germany should prepare for further cuts in Russian NatGas flows after Moscow recently slashed deliveries via the Nord Stream pipeline.

“We must not fool ourselves: The cut in gas supplies is an economic attack on us by Putin,” Habeck said. 

“It is obviously Putin’s strategy to create insecurity, drive up prices and divide us as a society. This is what we are fighting against,” he continued. 

Habeck wasn’t clear if NatGas rationing would be avoided.

The second “alarm stage” of a three-stage emergency plan allows utility companies to pass on higher power prices to industry and households to curb demand. The move comes as the Nord Stream pipeline to Germany operates at 40% of capacity after flows last week were reduced for a “technical problem” by Russian gas exporter Gazprom PJSC.

The second stage also increases energy market monitoring and allows for some coal-fired plants to be reactivated to increase electricity output.

All of this comes as Germany is making a mad dash to fill up its NatGas storage facilities ahead of winter. Total storage stands around 58% full, though the government-mandated target of 90% by November, a mark that might be hard to reach considering Nord Stream flows have been reduced.

Front-month benchmark futures rose as much as 6.5% to 135 euros a megawatt-hour on Germany’s elevated gas alarm.

German power for next year also surged 4.5% to 256 euros a megawatt-hour.

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

Winter is coming: German agency head warns of gas shortages, bankruptcies, and massive price hikes that will send ‘shockwaves throughout the country’

Winter is coming: German agency head warns of gas shortages, bankruptcies, and massive price hikes that will send ‘shockwaves throughout the country’

Inflation is already taking its toll on the German economy, but next winter is now being described in near apocalyptic terms by one prominent German agency head

A gas shortage and high prices will send “shockwaves through the country,” leading to landlords cutting the heat for tenants and widespread company bankruptcies, warned Klaus Müller, the head of Germany’s Federal Network Agency, which is the regulatory office for electricity, gas, telecommunications, postal services, and railway markets.

Müller paints a bleak picture about the crisis in an interview with German newspaper Rheinische Post, saying it will “send shockwaves throughout the country. Banks will ramp up their business with installment loans, and ailing companies will fall into insolvency.”

Müller’s office, which is a federal agency within the Federal Ministry for Economic Affairs and Climate Action, has a bird’s eye view of the economic situation in Germany and also special insight into how economic conditions will develop into the future.

Germany, gas supplies, Russia

As Germany prepares for crisis, one German energy expert is warning of a situation “where markets simply stop functioning”

Müller says he expects gas prices to continue to climb, resulting in increased inflation that goes far beyond energy. He also warns that there will be a dramatic lack of gas in the winter, which could lead to landlords turning down the heat to save on energy. In turn, Germans may have to grapple with colder apartments.

In a sign that the German government is operating under the assumption that a potential crisis could develop in winter, there are already talks about potentially lowering heating requirement for landlords.

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

“Gas Run Has Begun” – Fuel Stations Run Dry Amid Hacked Pipeline

“Gas Run Has Begun” – Fuel Stations Run Dry Amid Hacked Pipeline

Gas shortages are being reported in the Southeast of the US amid the recent cybersecurity attack that temporarily shut down one of the largest pipelines in the US.

Colonial Pipeline Co. Chief Executive Officer Joseph Blount said the company was in the process of restoring its systems but wouldn’t resume fuel shipments until the ransomware had been removed, according to Bloomberg.

At the moment, Colonial Pipeline is manually operating a segment of pipeline between North Carolina to Maryland and expects a complete system restore by the weekend. However, gas shortages are already being reported across North Carolina to Florida to Alabama.

On Monday, North Carolina Governor Roy Cooper signed an Executive Order declaring a state of emergency, temporarily suspending motor vehicle fuel regulations to ensure adequate fuel supply supplies throughout the state.

WLOS’ Caitlyn Penter reported gas shortages in North Carolina.

Penter said long gas lines were developing.

WEAR-TV’s Renee Beninate shows that one gas station in Northwest Florida was selling regular gas for $4.29/gallon.

More people in Florida panic buying fuel for $4.50/gallon.

In Fitzgerald, Georgia, one Twitter user shows long gas lines at an enmarket gas station.

One South Carolina gas station was out of unleaded and plus.

Someone in Myrtle Beach panic hoarded gas.

People are getting worried about the shortage.

A massive line of people waiting for fuel in Asheville, North Carolina.

People waiting to fuel up at one gas station in Plymouth, North Carolina.

Not sure where, but the run has begun.

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

Gas Station Shortages Expected In Texas As Gulf Coast Premiums Hit Record Highs

Gas Station Shortages Expected In Texas As Gulf Coast Premiums Hit Record Highs

According to retail fuel supplier Mansfield Oil, short-term fuel supplies for Houston and San Antonio are significantly impacted by Tropical Storm Harvey.

Bloomberg reports that San Antonio and Houston supplies are at code red, while Corpus Christi was downgraded to code orange as terminals have come online already and limited spot supplies are available.

For now, GasBuddy.com reports a number of stations are still open, though prices are rising…

However, the Gulf Coast CBOB gasoline spread to NYMEX futures rose 9.50c to a 16.50c/gal. premium – the highest on record in data from 2012.

The U.S. could see 30 percent of refining capacity shut on Harvey and if the storm moves up the Texas coast toward Louisiana, then additional shutdowns could occur in Port Arthur and Beaumont as well as in Lake Charles, Louisiana, Tudor Pickering Holt & Co. LLC analysts said. Port Arthur is home to the nation’s largest refinery operated by Motiva Enterprises LLC.

Scientists Warn Current Yellowstone Quake-Swarm “Could Rip…

U.S. Geological Survey (USGS) seismology reports conclude that a massive swarm of earthquakes swept through the park…

“There’s a big drop-off suddenly in crude oil demand,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone. “We have a supply disruption event in gasoline production. Gasoline demand in the balance of the country is still elevated, so we could see a real impact on gasoline inventories if these refineries are unable to get restaffed quickly.”

Howard’s energy superpower stuck in domestic gas shortages

Howard’s energy superpower stuck in domestic gas shortages

On hot days the truth comes out. Critical power plants for peak demand run on gas and that was short in supply, not only in South Australia, but also in NSW, as was shown in this previous post.

Multiple_power_systems_failure_NSW_10Feb2017Fig 1: Gas shortage contributed to multiple systems failure

The above information is taken from AEMO’s website POWER SYSTEM OPERATING INCIDENT REPORTS

with this incident report for the 10th of February.
NSW_generation_by_type_10Feb2017

Fig 2: Electricity generation by fuel in a heat wave

In Fig 2 we can see the dependency of the power supply on gas.

In AEMO’s Gas Statement of Opportunities March 2017 we find a graph with declining gas production from proved and probable reserves, together with this statement:

“AEMO’s analysis highlights that these domestic gas markets will rely on production from currently uneconomic and undeveloped gas resources (contingent resources) from 2021, and even more uncertain resources (prospective resources) from 2025, to meet forecast demand over the 20-year outlook period.”

AEMO_GSOO_2017_Fig1_domestic
Fig 3: Domestic gas production profile from conventional sources,
compiled i.a. on the basis of advice from producers

“For the purposes of GSOO modelling, AEMO has assumed that all LNG demand will be met and that GPG [Gas Powered Generation] will be a lower priority for gas supply. In its modelling, AEMO has assumed that, if gas was unavailable for electricity generation, another fuel type (such as coal-fired or hydroelectric generation) could be substituted – an assumption likely to be increasingly challenged as the electricity supply demand balance tightens.”

“Industry data shows that the rate of exploration and development of oil and gas wells recently drilled in Australia has nearly halved. Gas extraction is becoming increasingly challenging for all producers, due to a variety of factors:

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

Are Gas Shortages Coming to America?

Are Gas Shortages Coming to America?

Gas shortages could be coming to America…and quickly.

An unexpected fuel crisis has hit Canada. According to a Canadian blogger andauthor, not one, but two, fuel tankers were inexplicably delayed last week, and shortages ensued alarmingly quickly, with numerous gas stations running completely out of fuel within a matter of days. Marie Beausoleil wrote:

The delay was long enough that gas stations across Nova Scotia ran out of gas, even with a week of rationing.  The gas stations knew the tankers were going to be late and starting rationing in advance.

By Thursdaystorage tanks in the city of Dartmouth were empty.

The tankers arrived on Friday and started the process of unloading.

By Saturday the shortage had spread to the smaller communities, the less busy gas stations.

By Sunday evening, motorists across the province were stranded and “Out of gas” signs were everywhere. It would take, people were warned, at least a week to get all service stations filled across the province (and if you’re not familiar with it, Nova Scotia is a very small place!) (Check out the rest of the article HERE)

If you couple a potential fuel shortage with the dramatic instability of the US stock market, it sure doesn’t paint a sunny  forecast for the American economy.

A major fuel shortage could send epic economic shockwaves across the country, since our economy is based on cheap oil.

It all boils down to this: the transportation system.

  • If we can’t transport goods, businesses will have nothing to sell.
  • If businesses have nothing to sell, they can’t keep their staff employed.
  • If people have no work, they have no money.
  • If a few items are available, they will be outrageously expensive and not many folks will be able to afford the goods.
  • If you DO have money, you still have very little to buy.

Lots of people like to shake their heads and say, “Oh, this won’t hurt me at all.” That’s pretty shortsighted, because a fuel shortage will affect EVERYONE. CDL Life News recently published this alarming infographic.

Transportation system shut down

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

 

 

 

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