The Energy Report: A Bridge Too Far

And our demand for oil will not go away because of the pipeline hack. Panic buying on gasoline caused shortages and havoc. Yet, gas prices should peak as soon as more supply starts coming from the pipeline, because of the waiver of the Jones Act and EPA restrictions as well as supply on its way to the U.S. from Europe, the outlook for the summer still has us looking at the highest average prices we have seen in years.

Now, as Energy Secretary Jennifer Granholm says, the pipeline hack would not have been an issue for you if you own an electric car! So, all your internal combustion engine drivers get what you deserve! Of course, an electric car would have done you no good during the Texas power outages where alternative energy failed when put to the test. Yet, Granholm is invested in electric cars both physically and financially. Fox New reported, “As the Biden administration doesn’t seem to be slowing down on its green energy agenda that includes electric vehicles, Granholm has until late August to fully divest up to $5 million in stock options from Proterra, a company that makes electric buses, car batteries and charging stations. A top Republican senator has asked for an investigation into the secretary’s holdings and whether they present a conflict of interest with her department playing a key role in the Biden administration’s infrastructure plan that calls for $174 billion “to win” the electric vehicle market. Fox News also reported that Biden’s energy secretary is facing renewed backlash for cancelling the Keystone XL pipeline permit after she admitted this week that using a pipeline is “the best way” to transport fuel.

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At a Tuesday press conference, Granholm was asked by a reporter about the “feasibility of using rail cars” to transport fuel across the country as the nation faces a gas shortage from a Russian cyber-attack. The energy secretary said the Department of Transportation was looking into the use of rail cars to transport fuel and that “these are not easy solutions,” as there are a lot of variables with rail transportation. Pipelines are the best way. So, I assume that means that the Energy Secretary should support the Keystone Pipeline, Enbridge Line 5 as well as the Dakota access line because there is no doubt that that is the best way to transport fuel. Build more pipeline and build them now.

I told Maria Bartiromo on “Mornings with Maria” on the Fox Business Network that we were near a short-term peak on gas and AAA agrees. AAA says that motorists in the southeast can expect to see fuel flowing at local pumps in coming days. Late on Wednesday, the Colonial Pipeline announced the restart of pipeline operations. While it will take several days for operations to get back to normal, this news will help to ease the supply strain seen on the East Coast – especially in southern Virginia, the Carolinas, Georgia and Tennessee. These areas are experiencing reduced fuel availability in parts of their markets.

From the time the pipeline was taken offline on Friday until Thursday morning, the national gas price average increased 7 cents. That pushed the average to $3.02 this week – the highest average since October 2014. The national average is likely to continue to see fluctuation in the coming days and states where prices have spiked will see some relief as the pipeline becomes fully operational.

For motorists traveling through the south and southeast this weekend, AAA offers these tips, “If you are planning to travel this weekend throughout the south/southeast coast: If you own more than one car, use the most fuel-efficient model. Plan – bring groceries and other necessities with you to reduce making trips while you’re at your destination. Fill up before getting to your destination. Use the AAA Mobile app to locate gas stations and call ahead to see if they have fuel. Avoid driving during high-traffic times of day. Pack lightly. Remove unnecessary and bulky items from your car and don’t use your roof rack or a special cargo carrier. It takes more fuel to accelerate a heavier car, and the reduction in fuel economy is greater for small cars than larger models. Don’t travel with a container carrying extra fuel in your car. If you’re already on the road and will be traveling throughout the south/southeast coast: Use the AAA Mobile app to locate gas stations and call ahead to see if they have fuel. Have a Plan B in case you need to stay longer or can only make it part of the way home (find a stopping point). Use the AAA Mobile app to find hotels along your route and call ahead to check availability. Minimize your use of air conditioning. Even at highway speeds, open windows have less effect on fuel economy than the engine power required to operate the air conditioning compressor. In hot weather, park in the shade or use a windshield sunscreen to lessen heat buildup inside the car. This reduces the need for air conditioning (and thus fuel) to cool down the car.