Business

DHS Lifts Restrictions On Shipping Oil Products To Northeast

Northeastern states continue to reel under gasoline shortages in the wake of Hurricane Sandy. The Homeland Security Department is hoping to ease the problem by lifting restrictions on shipping petroleum products between U.S. ports.

The Jones Act ordinarily requires any traffic between domestic ports to be carried on U.S. flagged vessels. Secretary of Homeland Security Janet Napolitano has issued a blanket waiver on that restriction through November 13.

“It allows foreign vessels to be used to ship primarily Gulf Coast products up to the Northeast.”

Jeff Dietert is research director for Houston investment bank Simmons & Company.

“Typically this occurs on Colonial Pipeline, which is — it costs about 4.5 cents [per gallon of gasoline or diesel], and it takes about 21 days. Waiving the Jones Act will allow product to move at a similar price, but it can move up in five or six days.”

Dietert says blocked roads, power outages, and flooding of local pipeline infrastructure all present more immediate difficulties in getting fuel to storm-damaged areas of New York and New Jersey.

 

Share

Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

More Information