Oil company to limit deliveries in Dec.

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

The owner of two gas stations told me yesterday that she had been informed by her company rep that beginning in December their deliveries would be limited to what they used in the same period last year. She suggested that the reason was to limit stockpiling by her customers but that doesn't make a lot of sense because few people are willing or able to store a lot of gas at home. More likely they are trying to keep their December inventory as high as possible prior to the rollover. She knows I'm a GI and that's why she told me. Then she started asking all kinds of questions about what she needed to do to get ready. She also revealed that her business computers have not all been made ready for CDC, they have been working on them for months with company support. For those who are sceptics the stations are in Santa Ana, Calif. and it is one of the majors. She had no reason to lie to me. Also, if memory serves, this was also done during the oil embargo. Wondering

-- wondering (wondering@notoo.far), November 03, 1999

Answers

BTW I asked her about manual workarounds and she said there was *absolutely no way* (shaking her head). She agreed that it would be difficult in most other sm/med business.

-- wondering (wondering@notoo.far), November 03, 1999.

Which one of the Majors?

-- Gary (garyking@cheerful.com), November 03, 1999.

I have seen other notices to fuel customers regarding these issues. I think what you'll see happen on the products side is that every station in the world is gonna top off toward the end of the year, but it really won't matter.

I've seen the API study, and I did one of my own, and the capability is simply not there. In fact the API, and the industry, fully expect some "drama" around gasoline at years end. The ironic thing is that at that point, there will still be enough supply around that it won't matter.

Also, heard interesting story today, major was unwilling to buy a cargo which had load window over the Millenium window. The way it works with waterborne crude is that you typically get a two to five day load window on when your cargo will load. It occurred to me that nobody will be dumb enough to take those cargos. Producers will be stuck holding them til all's well at the well. Interesting eh?

-- Gordon (g_gecko_69@hotmail.com), November 03, 1999.


From:

Link

DECEMBER 7, 1998 Coast Guard raises Y2K warning flag Says problems could spill into oil tankers

(snip)

Speaking here at the Navy Connecting Technology Conference, Coast Guard CIO Rear Adm. George Naccara said concerns about computer chips that control oil pumps on vessels and in on-shore storage facilities could force the Coast Guard to issue a directive telling tankers "not to offload cargo on Dec. 31, 1999." The Coast Guard can issue an order against oil offloading from tankers under its mandate to ensure marine safety in U.S. coastal waters and ports.

(snip)

Chevron in San Francisco does not anticipate Year 2000 problems to affect the importing of oil. However, the company will not operate vessels in restricted water, such as narrow passages or ports, on Dec. 31, 1999, because officials are concerned that on-board systems may receive contaminated data from systems that are not Year 2000-compliant.

(snip to end)

Jerry

-- Jerry B (skeptic76@erols.com), November 03, 1999.


So the date of late January for oil problems suggested in the Oil Chat, would not be quite right. Problems will start sooner due to no offloading during the rollover period. And, what then, in fact, when do they begin to offload again?

-- Mara (MaraWayne@aol.com), November 03, 1999.


If the port facilities and the tankers work ok, I expect they would resume quickly. I would guess within a few days at most, in which case it would seem a minor blip in the overall picture. Otherwise, it would depend on what problems were encountered.

Jerry

-- Jerry B (skeptic76@erols.com), November 04, 1999.


Gary; It was Chev.

-- wondering (wondering@notoo.far), November 04, 1999.

Moderation questions? read the FAQ