A fuel supply company is warning of an imminent shortage of oil that will affect the southeastern United States, in part due to the low supply of oil reserves.
Mansfield Energy, which distributes more than three billion gallons of fuel annually in North America, said in a memo Friday that conditions in the oil supply market are “changing rapidly” and that the company expects some states to experience effects serious from lack. The announcement comes days after the Energy Information Administration reported that oil inventories are at their lowest level since 2008, reports Fox News:
The company speculated that the shortage could be created by “weak pipeline transportation economics” and a historically low supply of oil reserves.
“Weak pipeline shipping economics and historically low oil inventories are combining to cause shortages in various markets across the Southeast,” the company said. “These have occurred sporadically, with areas like Tennessee seeing particularly acute challenges.”
States expected to experience serious effects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina. …
“Because conditions are changing rapidly and market economics are changing significantly on a daily basis, Mansfield is moving to Alert Level 4 to address market volatility,” Mansfield’s press release said.
The company continued, “Mansfield is also moving the Southeast to Code Red, requiring 72 hours notice for shipments when possible to ensure fuel and cargo can be secured at economical levels.”
Record high fuel prices have caused headaches for the Biden administration ahead of next week’s midterm elections. The White House has reportedly threatened to take executive action against oil companies if they fail to lower prices for consumers.
