What You Need To Know About Regional Supply Issues
Jun 07, 2021
No matter what business you are in, you are feeling a supply pinch somewhere. The Petroleum industry is no different. On a local level here in Western Kansas we are experiencing unprecedented diesel outages at our main supply source, Scott City Terminal.
Looking at the months of March and April we had 41 days with no supply, 7 days with limited loads available, and 8 days fully supplied.
We are feeling the supply crunch due to distillate barrels lagging in the southern region which ultimately supplies the Scott Terminal. The refineries are still playing catchup from the deep freeze that griped the country back in February. Finished product is being sent to Kansas City, Wichita, and Denver, seemingly bypassing Scott City completely. We have seen diesel supply improve in May, though the long-term forecast is still uncertain. Our main concern is we have been experiencing these supply issues during a low to medium demand period. What will local supply look like for us during harvest?
Fuel suppliers have been sending trucks to Great Bend and McPherson for diesel to keep up with demand. This increased mileage not only causes higher freight, but the real challenge is maintaining driver’s hours of operation.
Fortunately, GCC is positioned to weather supply issues due to our robust storage infrastructure across from the terminal and at our Lowe location. We also help our customers through contracting programs, allowing them to buy gallons today and holding the physical gallons for future delivery. Please reach out to our Petroleum Division at (620) 276-8301 if you have any questions or would like to discuss our contracting programs.
Looking at the months of March and April we had 41 days with no supply, 7 days with limited loads available, and 8 days fully supplied.
We are feeling the supply crunch due to distillate barrels lagging in the southern region which ultimately supplies the Scott Terminal. The refineries are still playing catchup from the deep freeze that griped the country back in February. Finished product is being sent to Kansas City, Wichita, and Denver, seemingly bypassing Scott City completely. We have seen diesel supply improve in May, though the long-term forecast is still uncertain. Our main concern is we have been experiencing these supply issues during a low to medium demand period. What will local supply look like for us during harvest?
Fuel suppliers have been sending trucks to Great Bend and McPherson for diesel to keep up with demand. This increased mileage not only causes higher freight, but the real challenge is maintaining driver’s hours of operation.
Fortunately, GCC is positioned to weather supply issues due to our robust storage infrastructure across from the terminal and at our Lowe location. We also help our customers through contracting programs, allowing them to buy gallons today and holding the physical gallons for future delivery. Please reach out to our Petroleum Division at (620) 276-8301 if you have any questions or would like to discuss our contracting programs.