Hurricane Milton hampers gasoline supply chain

hurricane milton Residents in areas affected by the life-threatening storm that made landfall in Florida late Wednesday night may experience disruptions to gasoline supplies until the storm passes and shipments resume.

gas shortage Earlier this week, some stations in central Florida received calls as area residents filled up their tanks and hit the road for destinations outside of Milton's path. Some people stocked up on gasoline to fuel generators, which they rely on to keep lights on during power outages.

The American Petroleum Institute (API), which represents the U.S. oil and natural gas industry, says industry players are working with government officials to address supply issues and prepare to return to normal operations when possible. said.

“Our industry is closely monitoring Hurricane Milton and will work with state and federal authorities to mitigate supply issues and resume normal operations as quickly and safely as possible after the storm passes,” an API spokesperson said. Scott Lauerman said in a statement to FOX. work.

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An ExxonMobil spokesperson told FOX Business, “Our primary focus is the safety and health of our employees and employees.” florida community. We recognize that fuel supply is critical and are working to provide gasoline and diesel to the Port Everglades Fuel Terminal to support the needs of local emergency responders and the community. ”

“We stand ready to keep the Port Everglades Fuel Terminal open 24 hours a day, and are ready for increased truck traffic to support our efforts to get fuel where it's needed.” ExxonMobil's statement continued. “We are also working with others in the industry, including third-party distributors, to ensure we can supply gas stations as efficiently and safely as possible to meet their fuel needs.”

FOX Business also reached out to Chevron, ConocoPhillips and Shell about their efforts to mitigate supply chain disruptions and plans to resume operations after the storm.

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A fuel truck leaves Port Everglades ahead of Hurricane Milton on October 9, 2024 in Fort Lauderdale, Florida. (Photo by James D. Morgan/Getty Images/Getty Images)

Latest information from the secretariat Florida Governor Ron DeSantis It noted that 25 Florida Highway Patrol troopers were escorting fuel trucks from the Port of Tampa and Seaport Manatee to gas stations around the Tampa area Tuesday night and Wednesday morning.

“Additional troops will continue to provide 24-hour escort until it is safe to land,” the update added.

Ship traffic in and out of the Port of Tampa Bay has been suspended, as have several other vessels. florida harbor Anticipate the storm. The Department of Energy's Energy Information Administration (EIA) noted that 43 percent of Florida's petroleum products, including gasoline and diesel, pass through Port Tampa Bay.

“The duration of port closures and the impact of Hurricane Milton on oil and natural gas trade trends remains uncertain,” the EIA said Wednesday.

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Tankers and cargo ships transporting goods between U.S. ports must comply with the Jones Act. (Photo by Daniel Slim/AFP via Getty Images/Getty Images)

ambiguous transportation law The law, known as the Jones Act, could affect the resumption of regular gasoline supplies to Florida. The law requires goods moved by water between ports in the United States to be transported on U.S.-registered vessels that are owned and crewed by U.S. persons, and are built domestically.

Colin Grabow, associate director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Research, told FOX Business that the Jones Act “is relevant to Florida because Florida is essentially an energy island.” For example, there is no interstate pipeline connecting it to Florida.” , the Colonial Pipeline, and refineries along the Gulf Coast. ”

Thunderstorms can be seen moving over Tampa as far away as St. Petersburg, Florida, ahead of Hurricane Milton's expected landfall in the middle of this week. (Brian R. Smith/AFP via Getty Images/Getty Images)

As a result, Florida relies heavily on maritime transportation. transportation of fuel The same goes for shipments transported by truck from neighboring states. However, relatively few tankers are Jones Act compliant. Mr. Grabow explained that out of the world's 7,500 tankers, only 55 comply with the requirements of the law.

“I think we need as much flexibility and as many options as possible in an emergency situation, and this legislation will significantly increase the number of vessels available to choose from to transport supplies and fuel to Florida if the need arises.” It means less.

Mr. Grabow served President George W. Bush in response to Hurricane Katrina in 2005, President Trump in response to Hurricane Maria in 2017, president biden For Hurricane Fiona in 2022.

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These exemptions have proven politically controversial, especially the most recent exemption in 2022, when a BP-owned tanker departed Texas for the Netherlands and unloaded fuel. puerto rico. Supporters of the Jones Act argued that such exemptions should only be issued to empty vessels at the time the exemption is issued, Grabow said.

“As a result, if this were to happen again, many people would think, 'The government should just waive the Jones Act,' but since Presidents Biden and Trump two years ago, such waivers have never been done. It's become much more difficult.'' It was after Hurricane Maria seven years ago,'' Grabow said.