Lawmakers eye Savannah for “fuel fix” regarding supply

We can rest easy, everyone. Lawmakers are on it!

Savannah could play a prominent role in efforts to beef up the state’s oil supplies and halt further crises like the one hurricanes caused last month when they severed Georgia’s petroleum lifeline to refineries near the Gulf of Mexico.

That possibility emerged Tuesday as a study committee of state representatives began a round of talks on further developing oil pipelines, refineries and offshore oil exploration for Georgia’s short- and long-term needs.

Crude oil could be shipped into the port of Savannah and refined nearby, opening a second outlet for supplies that usually head to Gulf state refineries, said Rep. Steve “Thunder” Tumlin, R-Marietta, the vice chairman of the panel.

Those refineries were forced to stop production when hurricanes Gustav and Ike hit, knocking out power supplies.

Refining oil here would help prevent soaring prices and empty pumps that much of Georgia suffered through in the wake of hurricanes Gustav and Ike, Tumlin said.

7 comments

  1. odinseye2k says:

    Redundancy in disaster-prone areas. Brilliant!

    I’m surprised that magical market thingie didn’t conceive of this.

  2. Doug Deal says:

    grift,

    Storage has recently been a big problem in all industries. Because of the increased use of things like JIT (just in time) delivery, warehousing has been dramatically cut. It is great for cutting costs, but it is horrible during a shortage or some kind of production disruption.

    One day, this cost as the one and only factor for making decisions will bite us in a big way. Just think if one huge volcano wipes out a growing season, or a large Midwestern earthquake cuts several major rail and highway bridges over the Mississippi, not to mention terrorist actions? We do not have much of any inventory on anything to survive long without continuous production and transportation.

  3. griftdrift says:

    I think I read somewhere that the SE is the only region without massive storage facilities for petro products.

    Looks like we’re back on agreeance this week, Doug.

    For the moment. 😉

  4. Icarus says:

    There is currently an effort to run an additional pipeline parallell to the existing line from Louisiana to Atlanta. This pipeline already is at maximum capacity for 3/4 of the year.

    As I’ve stated here many times before, if capacity needs to be expanded (it does), it makes sense to look for some level of source diversification. Adding a S. GA refinery would produce many high $$ jobs, as well as provide an alternate logistical path to get gas to the Southeast.

  5. bowersville says:

    Ic, IMHO, look at how both the pipeline and the harbor in Savannah will benefit the most Georgians. You have given a good arguement for an expanded pipeline, expand your ideas.

    Consider, it’s not either/or, we can do both.

    Some have chosen the port of Savannah as the only source, don’t choose sides, do both. There in lies the most pragmatic solution and the most votes.

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