May 15, 2021
Diversified Energy Supply is seeing modest improvement in the Colonial Pipeline region. Shipments are arriving in the impacted markets. However, supplies are short lived.
We expect challenges to remain leading into Memorial Day weekend. As supplies slowly make their way from the pipeline to the terminal, the situation will be similar to what consumers are seeing at retail stations:
- Fuel becomes available.
- Lines form.
- Drivers wait.
- Fuel is eventually no longer available.
This means timing of deliveries will be difficult to project, and supply sources will still be hit and miss. Atlanta, Charlotte, Spartanburg and Richmond are the markets still suffering the most from a product perspective. The well-documented Fuel Driver Shortage continues in all markets.
Below are helpful links to keep you up to date on the situation:
- Diversified Energy Supply’s Resource page. Here you can subscribe to receive our daily Market Brief.
- Follow DES on our LinkedIn page.
- GasBuddy’s Colonial Pipeline Shutdown: Fuel Outages By State. This provides an overview of where retail problems persist and their relative degree.
- The Fuel Institute’s overview of Why Locations Ran Out of Fuel provides an excellent overview of why this situation was so impactful.
To our carrier partners, thank you for all you have done during this crisis.
To our customers, thank you for allowing us to serve.