Saturday 12 November 2011

Increase in Global Fuel Shortages, Price Hikes, and Subsequent Unrest

All of these stories have been cover a period of no more than 2-3 days


These are stories that would be lost otherwise - simply 'local' emergencies that each have their own rationalisation and justification.

But brought together they a paint a picture of rising fuel prices and shortages leading to suffering and unrest - as predicted by the Peak Oil movement.

These stories have been brought together by Collapse Net.  I have added a couple of my  own.  Many thanks to Jenna Orkin and Max Mogren for their work.



Brent crude oil may spike above $147/bbl: IEA

10 November, 2011
NEW YORK (Commodity Online): The International Energy Administration (IEA) said on Thursday that if unrest in Africa and Gulf continue, Brent Crude Oil could spike above its all-time high of $147/bbl very easily and this would ultimately put further strain on global economy.

"In 2011, $102 is the average price through to today which means the global economic recovery is at risk. We are in the danger zone for the global economy at current levels. There is a possibility that production growth from the (Middle East and North Africa, MENA) region may not be what the consumers would like to see. This would be a pity for the global economy, a pity for the oil sector and a pity for those governments”, IEA economist Fatih Birol spoke to reporters in a news conference.

OPEC has been adamant in not releasing more oil into the market. However, with IEA report clearly stating that high oil prices are damaging the economy, OPEC may face pressure from its consumers to release more oil. The next OPEC meeting is due in December



Officials report diesel supplies short in Nebraska

11 November, 2011


(AP)  LINCOLN, Neb. — Gasoline and diesel shortages at fuel terminals in the Upper Midwest have forced fuel truck drivers to sit in line for hours, waiting for fuel to arrive via pipeline.

Other truck drivers have seen diesel prices rise, nearing $4 a gallon in Nebraska and passing that in the Dakotas.

"I've never seen anything like it in my life," Dick Salem, president of Lincoln Trucking Lightning, told the Lincoln Journal Star (http://bit.ly/vaLoDK). "We went through three big-time shortages in the '70s, and it was never like this."

One of the two fuel terminals south of Lincoln hasn't had diesel fuel for at least a month. When a supply comes in to the other, it runs out in a couple of hours.

"It's as bad as I've ever seen it," said Tom Garner, energy division manager for Farmers Cooperative.

For article GO HERE



Saskatchewan, Canada:Diesel shortage affects oilpatch traffic

Refinery woes hinder southeast




10 October, 2011

The shortage of diesel fuel is slowly shutting down the oil industry in southeastern Saskatchewan, according to the owners and operators of trucking and oilfield service companies, whose trucks and equipment run on diesel.

The slowdown has been caused by a shortage of hydrogen sulphide at Suncor's Edmonton refinery and an explosion at the Consumers' Co-operative Refineries Ltd. refinery in Regina last month, which damaged the diesel processing unit.

For article GO HERE


Nebraska, USA: Diesel fuel shortage hits state


Diesel fuel is in such short supply in the upper Midwest that people in the fuel industry say it's the worst shortage they can remember.

"It's as bad as I've ever seen it," said Tom Garner, the energy division manager for Farmers Cooperative, who's been in the business 33 years.

"I've never seen anything like it in my life," said Dick Salem, president of Lincoln Trucking Lightning. "We went through three big-time shortages in the ‘70s, and it was never like this."

The shortage particularly is bad in the Lincoln area. One of the two fuel terminals south of Lincoln hasn't had any diesel fuel for at least a month, Garner said, and the other has had sporadic supply that runs out in a couple of hours.

For article GO HERE


Nigeria: Fuel subsidy removal: Youths mobilise for hunger strike, demonstration

10 November, 2011


Nigerian youths have advised President Goodluck Jonathan to tread softly on the plan to increase the pomp price of fuel in Nigeria by means of subsidy removal on petroleum product, stating that the action could set Nigeria ablaze.

The youth under the aegis of National Youths Council of Nigeria advised the government not to set a rigid date for its plan to remove the subsidy, but should rather weigh available options as a compelling alternative.

Vowing to resist the plan by the government, the youth said the government should start taking positive steps towards fighting corruption among public officials both at the federal and state levels, stressing that the amount being looted on a daily basis by these officials were sufficient enough to cushion the subsidy.

For article GO HERE



Protest against fuel price hike, trade union members arrested


the Hindu,
9 November, 2011



Several trade union members were arrested in the city on Tuesday after they attempted to stage rail roko agitation in support of their 10-point charter of demands.


Heeding to a nation-wide protest call given by all trade unions, members of Centre of Indian Trade Unions, Labour Progressive Front, Indian National Trade Union Congress, All India Trade Union Congress, Bharatiya Mazdoor Sangh and All India Central Council of Trade Unions, numbering over 300, assembled near the Tiruchi junction to carry on with their agitation for which permission was not granted by the city police.

The trade union members were taken into custody after they defied the police directive and attempted to go ahead with their plan. The members squatted on the approach road leading to the junction for some time demanding that the Centre control the hike in the prices of petrol, diesel, LPG and essential commodities, and withdraw sale of shares of public sector and government undertakings.

Creation of a national fund and passing of central protection act for unorganised labourers; withdrawal of new pension scheme; implementation of a guaranteed pension scheme for all sectors; grant of Rs. 10,000 as minimum wage; and filling up of vacant posts in government and public sector undertakings were among their other demands. All those arrested were later released.





Colombia: 32 injured in Ecopetrol protests: Union



9 Novemember, 2011


Clashes between Ecopetrol and police at the state oil company's plants in the cities of Cartagena and Barrancabermeja Wednesday left at least 32 protesters injured, said the president of the oil workers union. According to Ecopetrol, the protests have not affected oil production
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Rodolfo Vecino, president of the oil workers' union USO, told Colombia Reports that two workers have been arrested, 24 protesters were injured in Barrancabermeja and another eight were wounded in Cartagena.

According to the oil union director, the protest was in defense of the workers' right to associate and collectively bargain wages. Vecino accused Ecopetrol of having pressured workers to leave the union.
The director of the USO, repsresenting a quarter of Ecopetrol workers, added the protest was peaceful until riot police interfered.

Ecopetrol spokesman Juan Guillermo LondoƱo told Colombia Reports that "Ecopetrol respects the right to association, but we do not agree with this way of coming to a dialogue."

According to the USO leader, this "is only talk, the reality is different. They are talking about dialogue, but they are attacking us through the riot police."

The unrest at Ecopetrol is the second oil workers protest turning violent this year; in July riots erupted at the largest oil field of Canadian oil company Pacific Rubiales, who protested the dismissal of hundreds of their colleagues.


Plan to hike CNG price again amid protests



Bangladesh is set to raise prices of Compressed Natural Gas (CNG) once again this year.

Finance Minister AMA Muhith hinted about a hike in Dhaka yesterday. 
 He said, price of CNG might be increased further this year to align itself with the international market price. 

  Talking to reporters at his ministry, he said although the price of CNG is low, the common man was not getting any benefit out of it. 

  Muhith observed that there is hardly any difference between the fares of CNG-run and diesel-run transports. So, he said there is a plan to equal the price of CNG to that of diesel in phases. 

  “It is necessary to increase the CNG price. It must be equal to diesel,” he said, adding “CNG does not give you extra benefit since this benefit does not go downwards.” 

For article GO HERE



Load-shedding likely to resume in Uganda



10 November, 2011

Kampala, Uganda --- ESI-AFRICA.COM --- 10 November 2011 - Ugandans can begin to prepare for darker nights in the wake of a warning by Umeme Limited ? the country’s principal power distribution company ? that 24-hour load-shedding is likely to be resumed.

This warning came after the Uganda Electricity Transmission Company Limited (UETCL) had informed Umeme that thermal diesel electricity generator Aggreko had indefinitely switched off its Mutundwe station due to a shortage of diesel to run the power plant.

In a statement released here, Umeme outage project manager Florence Nsubuga said the shutdown had cut electricity supply to the national grid by 50MW, causing increased load-shedding.

“The current load-shedding schedule has been changed as per instructions from UETCL,” said Nsubuga, adding: “Aggreko has been supplying 50MW to date and during that time, the deficit during peak time varied between 100MW and 140MW. Now the situation has become worse, and we are notifying customers to plan accordingly.”

But UETCL managing director Erias Kiyemba said the power plant switch-off would be short-lived, although he could not commit on when the plant would be switched on


Fuel shortage hits Zambia’s capital, Lusaka

9 November, 2011


Zambia's capital Lusaka has been hit by severe shortage of fuel as a strike action by fuel tank drivers who deliver fuel to filling stations enters day three. The fuel tank drivers are demanding for better working conditions and a salary pay rise of about K 5 million (US $ 1,000) across the board and other unpaid arrears amounting to about K10 million (US $ 2,000) for each from their employers.

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Many of the striking workers belong to oil companies which include Total and Ody’s Oil companies which are the main suppliers of petrol and diesel around Lusaka and some parts of Zambia. 
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A round check at most filling stations in Lusaka found many of the stations open but without any of the commodities as many motorists heaped the blame on the oil companies’ management.
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“They need to pay these workers their dues because they are creating fuel shortage in the country and others are holding fuel as the result the prices will soon go up,” said a motorist who only identified himself as Lucky.
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Despite the shortage in the fuel commodity the prices of fuel in the capital has remained the same but fears were rising that the prices will soon be hiked if the strike action continues which might also affect prices of goods.
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Currently one litre of petrol costs about K8,200 which is about US $2 dollars and diesel per litre is selling at K7,400 which is almost US $ 2 dollars at most filling stations.
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The ministry of energy has not yet issued any statement.




Power surge leaves western Kenya without petrol

12 November, 2011


Fuel shortage has persisted in western Kenya since the weekend when a power outage disrupted pumping of the products.

Kenya Pipeline Company operations manager Philip Kimelu said normal pumping resumed on Sunday. Most of the filling stations in Nairobi, however, had no fuel until Tuesday evening.

The outage, lasting 14 hours, is understood to have led to a breakdown of valves in Nairobi which in turn affected onward supplies to western Kenya.

“We have managed to close the gap and are now loading all requests for pump overs,” said Mr Kimelu, adding that requests for delivery had doubled.

“We have noticed a 60 per cent increase in uplifts. We normally pump 2,000 cubic metres for Nairobi but this has now doubled to 4,000m3,” he said on telephone.

Records provided by the pipeline co-ordinator show that Nairobi has received 9.5 million litres since operations return to normal. Industry executives, however, said they were receiving less products especially in western Kenya.

“KPC says it has a lot of stocks. But our trucks still cannot load as per orders. There is no availability of ready stocks in Nakuru, Kisumu, and Eldoret,” said Mr Peter Njeru, the managing director of Riva Petroleum.

Officials at Kenya Shell said their tanks in Nairobi were now full with products after they were unable to load on Friday and Saturday. “It could be a distribution and logistics issue,” said a manager at the firm.

There are reports of hoarding products in anticipation of higher prices during the mid monthly price reviews by the sector regulator, a claim denied by major oil marketers.

MPs have accused major oil companies of hoarding products and causing an artificial shortage in parts of the country.

“The pipeline storage network is full with products worth nearly one month consumption. We want to be told why marketers are hoarding products, causing a shortage,” Karachuonyo MP James Rege, who chairs the Parliamentary Committee on Energy, said Wednesday.

Independent oil marketers said hoarding of products was becoming common in the run up to price reviews, announced on the 14th of every month.

‘I have not had Super for two weeks. Most independents are out of premium petrol stocks while diesel supply is on and off. There is no depot willing to sell to us,” said Mr Venancio Kariuki, an independent dealer in Nairobi.

The independents, small Kenyan-owned firms, complain of being crowded out since the inception of price controls last December. Dealers say wholesale prices encroach on their margins.



Malawi blames vendors for fuel shortage
11 November, 2011


Malawi Police Service and the Malawi Energy Regulatory Authority (MERA) a body that regulates fuel in the country are blaming fuel vendors for the shortage of fuel in the country. The police so far have launched a clean-up on black market fuel vendors that government is condemning for the fuel shortage at filling stations in the country.

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The operation known as “Kusaka” (tracking) witnessed cops confiscating about 10 000 litres of fuel bought without purchasing permits document.
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In previous days, Natural Resources Energy and Environment Minister Goodall Gondwe expressed his dissatisfactions that despite pumping 16 million litres of fuel in the past five days, fuel queues were still long due to black market fuel vendors.



Tanzania: TPA refutes claims over fuel shortage
9 November, 2011

Dar es Salaam.  Tanzania Ports Authority (TPA) has refuted claims that it caused fuel shortage in the country by allowing a vessel carrying oil destined for Burundi to skip the queue and unload the fuel at the Kurasini Oil  Jetty (KOJ). 

The TPA corporate communication manager, Mr Franklin Mziray, admitted that the authority allowed a vessel christened Miss Marille, which was carrying fuel for Burundi and Rwanda, to skip the queue since there was shortage of fuel in the two countries.

For article GO HERE





Shortage of diesel fuel hits mainland


8 November, 2011

An unprecedented diesel fuel shortage in the industrial-centralized coastal regions of China has forced about 2,000 privately owned gas stations there to close, threatening the local economy, an industry chamber and experts said.

Despite a nationwide tightening-up of diesel supplies since October, major cities such as Beijing, Shanghai and Guangzhou are not imposing any restrictions on supplies, according to the China Chamber of Commerce for the Petroleum Industry.

Zhejiang, Jiangxi and Gansu provinces were among the hardest-hit regions, China Petroleum & Chemical Corporation, or Sinopec, said in its statistics.

Trucks were seen lining up at gas stations in these cities for hours. 

Drivers were allowed only a limited amount of diesel fuel, forcing desperate drivers to travel around the city to get their tanks filled, a driver in Huzhou, Zhejiang Province, told the Xinhua News Agency. The line off the No. 104 national highway section in Wenzhou, Zhejiang Province, was at least three kilometers long, according to the Beijing News.

Wang Yong, a truck driver, told the Global Times that they are so desperate for diesel that they have to pay 10 percent more than usual.

"Nine out of 10 gas stations are out of oil, and the one that does have stock only allows us to buy 200 yuan ($29) worth of oil each time," he said, adding that deliveries are often postponed because of the shortage.

Dong Xiucheng, the director of the China Research Center for the Oil and Gas Industry Development at the China University of Petroleum, attributed the diesel scare to multiple factors.

"Local governments ordered factories to implement power rationing to meet emission targets, meaning their electricity supply is suspended at certain times. To finish orders on time, many export-oriented businesses in the south chose to turn to diesel generators for a power supply to maintain and accelerate production. Demand then shot up," he said.

The suspension of production by refineries due to routine safety overhauls in August and September also contributed to the reduction of the diesel supply, Dong added.

Shan Weiguo, a senior economist at the China National Petroleum Corporation Research Institute of Economics and Technology, told the Global Times that the shortage not only undermines the national economy but also affects the daily lives of ordinary people.

"The shortage will trigger chain reactions. Heating in the winter is likely to be affected as the transportation of coal is delayed," he said.

A new round of stimulus measures announced by the United States has pushed international oil prices to a six-month peak, raising expectations of domestic diesel prices at the same time.

For article GO HERE



China: diesel thieves on prowl

9 November, 2011


China, the world’s biggest energy user, is facing a growing diesel shortage as domestic fuel prices are increasingly out of line with global energy prices.

China periodically faces diesel shortages when the state-set diesel prices are below levels at which Chinese refineries can make a profit given prevailing international crude prices, because some producers shut down rather than sell diesel at a loss.  The supply problems are prompting speculation that the authorities may be forced to switch to market prices.

Beijing’s tough energy policies also sparked a diesel shortage last fall, when the government restricted energy supply in some areas and demand for diesel-fired generators grew.


This time around, reports of long lines at fuel stations have been rising ever since a poorly-timed fuel price cut at the beginning of October. The shortage reached a new high this week with an epidemic of diesel stealing in Shandong province on China’s east coast.

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