Gas Prices Jump After Pipeline Fire

Daily News Article - November 2, 2016

Questions

1. What is the Colonial pipeline? Be specific.

2. What occurred on Monday to disrupt flow from the pipeline?

3. What effect will this disruption have on customers who rely on it for fuel?

4. What is Colonial doing to minimize the disruption?

5. Describe the first accident with the Colonial pipeline that occurred in September.

6. Who will benefit from this second incident with Colonial in Alabama?

7. From the last two paragraphs of the article:

“While fuel inventories in the Northeast have replenished since Colonial’s last outage, Tom Kloza, global head of energy analysis at the Oil Price Information Service, said supplies are fairly tight in that region.

‘It exposes the flaws of a just-in-time inventory system for a lifeblood product,’ Mr. Kloza said.”

The reality is that fossil fuels (coal, oil, natural gas) are what give us electricity to power our air conditioners, computers, smart phones, video games, washing machines, clothes dryers et al, plus give us heat, running water and hot water, et al. Those believe that the use of fossil fuels is causing a looming catastrophe - global warming - insist the use of these fuels must be drastically diminished with the goal of eliminating their use.
Those who don’t believe that the use of these fossil fuels is causing climate change - that change in the climate is natural / cyclical believe the government should allow fuel companies permits to build refineries, power plants and pipelines.

a) What do you think? Do the accidents with Colonial pipeline prove that the use and transportation of gas, oil and diesel fuel should be reduced/eliminated even before it is replaced 100% by alternative fuel (wind, solar, water et al)?
b) Ask a parent the same question.

CHALLENGE QUESTION: The WSJ reports, “The East Coast has become more dependent on fuel deliveries from the Gulf Coast after refineries along the eastern seaboard have shut down in recent years.”
Define refinery. Do an internet search to find out why these refineries have closed, despite the ever growing demand for fuel.