More on Gasoline and Diesel!!!

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I worked with an oil Jobber for eight years in the D.C. area.

Here are some observations regarding what will happen after Christmas.

There are Fuel terminals scattered throughout the U.S. Most cities have a few of them. These fuel terminals have gasoline,diesel,fuel oil that is loaded onto the big tractor trailers that you see on our highways. These trucks our owned by the major oil companies and also alot of them are called common carriers, These trucks are independently owned and do subcontract work for the majors and all others. These common carriers are used extensively to haul fuel for everyone from small jobbers to the major gasoline companies. There is only so much fuel that can be hauled by all of the trucks available at certain times.

The importance of this I learned during a very cold spell when Natural gas customers were turned off. (you didnt know they could be turned off if it got too cold?). Anyway I had Shopping malls,Apartment buildings etc. looking for Fuel oil AT ANY PRICE. Guess what? We could not find any trucks available to haul it.

Just think about this. The coldest weather of the year is about to make its way down the U.S. at the same time people and dont forget businesses will be TOPPING OFF their tanks. Could get real interesting. good Luck!!

-- d----- (dciinc@aol.com), December 20, 1999

Answers

d,

i agree with your implied analysis. but i have to say that, at this late date, still no indication of shortages anywhere, not even a hint. straaaaaaannnnnggggge days indeed. of course, i know things can change in a flash.

lets all hope it continues this way. i dont want to see a repeat of the early 70s .. or worse.

lou

-- lou (lanny1@ix.netcom.com), December 20, 1999.


Lou,

I'm not refering to fuel shortages!! I am refering getting the fuel from point A to point B. If you have Gas stations placing orders and the plethora of other services that tie up fuel trucks, i.e. contractors,airports,apartments,shopping malls. You have a situation where there may be plenty of fuel at the Terminal, but there are not enough trucks to make the deliveries.

Since this type of National Top-off has never occurred before timed with cold weather. I can guarantee there will not be enough trucks to deliver all of the fuel to the Gas stations. As far as how long and wether or not it continues into the new year remains to be seen.

-- d----- (dciinc@aol.com), December 20, 1999.


This is on top of the major retailers increasing their safety stock of key supplies. My contention is that trucking is operating at capacity and at some time the extra slack the majors have to backhual will be gone. We are there now. There is no slack and extra demand is just that demand. We cannot just produce 15% more truck drivers or expect them to operate 24 hours a day. Scheduling truck pickups is tough this week, next week is looking strangely quiet, so far. We shall see.

-- Squid (ItsDark@down.here), December 20, 1999.

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