New York City buying Gasoline from China

This is an ominous sign

Bloomberg

In August, New York Harbor closed to ships delivering gasoline because there was nowhere to put it. When the Colonial Pipeline broke, Gasoline to New York stopped. Being on the far end, the terminals along the route (like Charlotte) likely are drawing most of the flow. New York gets gasoline from Europe, Canada, a refinery in Philadelphia and a pipeline from Indiana. They are not as dependent on a single pipeline as Atlanta and North Carolina.

Apparently, China has enough refining capacity to refine gasoline for export – 300,000 barrels a day. Sending a tanker through the expanded Panama Canal from China to New York City is curious. Is this gasoline refined from crude coming from Russia or from storage when China was paying $140 a barrel?

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8 Responses to New York City buying Gasoline from China

  1. Parrott says:

    Shipping gasoline by tanker instead of pipeline, Man thats dangerous. I understand no pipeline from chiner but still, they had no reserve in NYC ?
    wonder how china gas runs ? No ethanol mixed in with it ? Not that I approve of corn being turned into ethanol, I wonder what things were done by the EPA to facilitate this type transaction.

    Gasoline is hard to handle, they had a time with it during WWII with piston planes. The Airforce and airlines like diesel fuel, JP-5 & JP-8 for planes, easier to ship and not as volatile. Dodge Rams with a Cummins turbo diesel engine can run JP-5 in a have to situation.

    Yeah I don’t know about china gas, It maybe ok, but could be half -ass too,
    parrott

    • Fred Stiening says:

      I did a bit more research – the blurb I did about a week ago is useful for context about oil sources and usage world wide.

      http://streamingradioguide.com/startingover/?p=16735

      – Global demand is around 93 million barrels/day
      – OPEC controls 38 million of that
      – the US uses 18 mbpd, 9 is for gasoline
      – our own production + Canada provides most of what we use
      – China uses about 4.5 mbpd (with 4x our population)
      – China produces / imports about 6.3 mbpd

      About 1 mbpd is from a relatively new pipeline from Russia. Another pipeline from Central Asia (Kazakhstan) supplies a lot. Offshore wells in the South China Sea are ramping up production.

      So China looks to be interested in playing in the refining business for export. This may be more than a one time deal. Saudi Arabia is beginning to realize the era of infinite wealth is over. People are getting unhappy their free stuff is being cut back

    • Fred Stiening says:

      Area 1 (New England) had 70 million barrels of gasoline in storage before the pipeline broke, but it carries only 1.3.million barrels a day, and a lot of that never reaches the Northeast US. The media did an excellent job stampeding people into panic.

    • Fred Stiening says:

      I’m pretty sure that is a big part of it. Gas in fungible – it doesn’t contain DNA that says the country of origin. As long as the gasoline meets colonial’s quality standards, Gasoline is gasoline. You put in 100,000 in, you take 100,000 barrels out. It is not the same Gasoline you put into the pipeline. That’s the reason to have one pipeline doing nothing but gasoline. They can do segregated batches where you get in the exact stuff you put in, but it creates waste that has to be reprocessed.

      So we have sanctions in place on Russia. Russia sells oil to China. China mixes the oil with their own oil, then refines it in a Chinese refinery. I am an opponent to most economic sanctions – all it does is makes money for the crooks. China is giving money to Russia not for the oil, but to fund further oil exploration in Russia.

      Most of the advertising that XYZ has the MPG999 super additive is just marketing nonsense. It’s all coming from the same tank. Consider for a moment if you buy premium grade. If the person before you bought cheap 97 octane, what is sitting in the hose between the pump and the nozzle when you turn the pump on…

      Hope your relatives are well. I just got back from Walmart with my bread and milk 😉 you can never start too early

  2. haiti222 says:

    *has been imported

  3. haiti222 says:

    They seemed to have faith in the (recent) concrete construction of their home. Their biggest concern was that the roof would get ruined by the hurricane if worse came to worst.

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