U.S. Vessels Ready to Transport Fuel to Northeast: AMP

Press Release
Wednesday, March 28, 2012

Washington, D.C. – With concerns that refinery closures in the Northeast may cause gas prices to increase further, the American Maritime Partnership (AMP) notified the Administration that American vessels have ample capacity to transport petroleum to the region from the Gulf of Mexico. AMP’s letter comes after a federal analysis omitted key data about the domestic shipping industry’s overall capacity.
 
“Today, there is more than adequate American tank vessel capacity to address any additional refinery closures,” the AMP Board of Directors wrote in a letter to Energy Secretary Steven Chu, Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood. “A large American tank vessel fleet of modern and highly sophisticated vessels exists in this country to move petroleum products.”
 
The Northeastern United States faces possible changes in its petroleum markets because of potential refinery closures. There have been suggestions that the increased volume of product transported by vessels from the Gulf of Mexico to the Northeast would exceed U.S. tank vessel capacity.
 
The Energy Information Administration (EIA), part of the U.S. Department of Energy, released a report in February suggesting that Jones Act tank vessels might be in “short supply” in the case of refinery closures. The AMP letter said the report did not consider tank barges, including modern articulated tug barges, which are a primary means of transporting petroleum products in the United States.
 
“In an error of omission, the EIA's analysis understated the American tank vessel capacity by approximately 50 percent,” the AMP letter said.  “Once all American tank vessel capacity is considered, there is ample capacity to address changes in petroleum product markets as a result of Northeast refinery closures.”

The letter noted that the group is working with EIA to update its information and correct its report.
 
AMP said the use of American vessels will not impact gasoline pump prices, noting that 90 percent of the price of gas at the pump can be attributed to the cost of crude oil and taxes. Crude oil prices alone constitute 78 percent of the price of gasoline, overwhelming other factors like transportation.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Russia Diesel Exports from Primorsk to Rise in May

Russia is set to export 1.256 million tonnes of ultra-low sulphur diesel from the Baltic Sea port of Primorsk in May, slightly up from 1.209 million tonnes in April, trading sources said on Friday.

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

Pressure Steady on LNG Shipping Rates -Drewry

LNG shipowners will have to wait until 2018 for earnings to improve, when the majority of new US plants are expected to come online, according to the latest edition

News

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Conquest Installs 850t Crane on Allseas Solitaire

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1016 sec (10 req/sec)