People Running Their Asses Off
(c) The Chronicle

Earlier today there was a huge explosion in Walnut Creek that killed three and injured six. A construction crew accidentally struck an underground petroleum pipeline that sent flames and smoke high into the air (pictured here). About 270 buildings, including businesses and homes, had to be evacuated due to the explosion and impending blaze which spread to nearby buildings. I don’t know why I think this picture is so funny. I guess I’ve never seen anyone running away from smoke at full speed. That’s just not right.

The ruptured pipe is owned and operated by Kinder Morgan Energy Partners, a Houston-based distributor of refined petroleum products. It carries gasoline, diesel and jet fuel from Concord to San Jose. I hope this desn’t mean that gasoline prices in San Jose are going to skyrocket because of lack of supply. Hopefully that’s not the only pipeline to San Jose.

1 Comment »

  1. It is the only pipeline to San Jose. FILL UP NOW!

    This is an excerpt from today’s Oil Price Index (OPIS):

    The sudden shutdown of the Kinder Morgan pipeline running from Concord to San Jose may cause some supply shortages and logistical problems for shippers that must move product into the San Jose market. Not only might San Jose be short, but potential shortages loom in Stockton, Sacramento, and Richmond as supplies will have to be diverted from those markets to serve San Jose in weeks to come. Already there is some early scrambling by independents to find unbranded supply.

    ConocoPhillips has cut off unbranded customers at Richmond as of today, with a notice saying that products are “unavailable until further notice.” It also cut off unbranded customers at San Jose, sources tell OPIS. Unable to ship bbl on the pipeline, more companies will scurry to haul by truck, thus compromising truck productivity, said a source.

    Example: the pipeline to San Jose does about 5,000 bbl per hour, or 120,000 bbl p/d. If the average truck load is 200 bbl, that’s 600 trucks per day that have to make up for the pipe.

    “You have the combination of one of the most heavily congested areas, from a vehicle traffic standpoint, in the country, so just the sheer logistics of running a truck back to the San Francisco Bay refinery racks versus loading at the San Jose rack to serve the San Jose region really cuts back the productivity of those trucks,” he said.

    An example cited by a large retailer in the area is that its own drivers could make about six deliveries to stations in a shift loading at the San Jose rack – if they have to run back to the Bay area, at best they’ll get 3 loads per shift. “Magnify that times all the big retail systems, and there is the potential for shortages in the San Jose area,” said the source.

    #1 by Sant — November 10, 2004 @ 4:50 pm

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