Electrical Service Slowly Coming Back|
Electrical service is slowly coming back in the regions affected by
Superstorm Sandy and regional utility companies are reporting that it could be a
week or more before the bulk of customers have power restored. While delays are
understandable given the scope of the storm, the result is still bad news for
the region as electricity is key to getting gasoline supplies where they are
needed. While lack of gasoline is not necessarily the key problem, without
power, gas stations cannot pump the gas they may already have. “Power and
flooding are the clear problems for restarting refineries, terminals, gas
stations and pipelines,” said John Felmy, chief economist at the American
Petroleum Institute. “The industry is working hard to restart, but without grid
power, we must rely on generators.” Many looking for gasoline will find it
sparse while others simply cannot drive due to flooded roads and damage caused
by Sandy. “On the demand side, folks who can drive appear to be out looking for
fuel and encountering gas lines,” he said, but many stations do not have power.
“Initial concerns with storms like this are supply disruptions, while the
bullish concern is replaced with a bearish one due to lost demand,” said Brian
Milne, energy editor and product manager at Telvent DTN. “That’s what we’re
seeing now. Roadways are in terrible shape in New Jersey.” After all, “the
biggest feature with this storm compared with other monster storms is that it
hit the densely populated Northeast region,” Milne said. “On a grand scale,
supply and demand may negate each other,” said Jeff Lenard, a spokesman for the
National Association of Convenience Stores, a trade group for an industry that
sells 80% of the nation’s gasoline.
The U.S. Department of Homeland Security on Friday announced they are waiving
the Jones Act that will allow additional oil tankers from the Gulf of Mexico to
enter Northeastern ports after Hurricane Sandy. "This waiver will remove a
potential obstacle to bringing additional fuel to the storm-damaged region,"
Janet Napolitano, secretary of Homeland Security, said in a statement. The act,
which restricts tanker movements between U.S. ports to U.S. flagged vessels, has
been waived until November 13. New York Governor Andrew Cuomo said the state is
waiving requirements for registration and taxes to increase the speed of for
ship and barge deliveries in New York Harbor which is a major fuel distribution
hub in the Northeast. “Millions of gallons of gasoline are now in the harbor and
going through the network,” Cuomo said in a message on Twitter. Much of New
Jersey and New York City remained without power Friday, hampering efforts to
reopen service stations. One of the main bottlenecks is in Linden, N.J., near
the Phillips 66 (PSX), Bayway refinery and three terminals. Power has been
restored to the facility, but the company has yet to say when it will reopen.
Another blockage is in Bayonne, N.J., where a fuel oil spill and power outages
continue to hamper distribution. Public Service Enterprise Group (PEG) which
serves much of New Jersey reporte that while they have restored service to more
than a million customers, at least 692,000 homes and businesses remain without
power. Reports are that PBF Energy has begun trucking gasoline into the New York
market to circumvent pipeline and terminal outages. The company’s 190,000
barrel-a-day refinery in Delaware City remained open throughout the storm.
Spokesman John Pepper for Hess Corp. (HES) said the company learned a lesson
from operations in Florida where hurricanes are more frequent, and stockpiled
generators for its stations in the New York area ahead of the storm. Pepper said
out of 186 Hess stations in the New York area, 177 are operating. The U.S. Coast
Guard said Friday that fuel barge and tug traffic is now open in New York and
New Jersey ports and waterways. “Other deep-draft vessels are allowed to enter
the waterways on a case-by-case basis,” the Coast Guard said
The U.S. Consumer Product Safety Commission announced, portable generators made
by Champion Power Equipment, around 8,600 of them sold exclusively by Costco
Wholesale Corp. (NASDAQ: COST) have been voluntarily recalled after several
reports that they leaked fuel and caught fire. CPSC said that fuel can leak from
the generators' carburetors, posing a fire hazard. There have been 11 reports of
fuel leaks, eight reports of the generators catching fire and two reports of
property damage. The recall affects two models of Champion Power Equipment
portable generators, made in China, which have a black frame with black and
yellow control panels, two wheels and a bar handle. The generators were sold at
Costco stores nationwide for around $699 between December 2011 and July 2012.
Consumers are advised to stop using the generators immediately and contact the
manufacturer for a repair kit or return them to Costco for a refund. The recall
comes as massive power outages remain on the East Coast in the wake of
superstorm Sandy, leading many residents to rely on portable generators for
New Jersey Gov. Chris Christie rescinded an order on Friday that closed the
casinos in Atlantic City last weekend ahead of Hurricane Sandy, allowing the
seaside resort's gambling halls to reopen. Christie also ended mandatory
evacuation for residents. The director of the state's gambling regulator "has
indicated that a complete review and assessment of the status and condition of
each casino property, including the casino floors, its equipment, surveillance,
security and gaming related computer systems have been completed," Christie
The Commerce Department reported Friday that factory orders rebounded 4.8%
during September, almost completely reversing a drop in August. During the month
of September, orders for non-durable goods rose 1.0%; shipments rose 0.8% and
inventories increased 0.3%. Durable goods were revised to a 9.8% gain from 9.9%
reported last week with the gain largely due to a rebound in bookings for
commercial aircraft. Orders for non-aircraft, non-defense capital goods rose a
slight 0.2% in September. Durable goods orders during August were revised
slightly higher to a 5.1% fall from an initially reported 5.2% decline.
The U.S. Labor Department reported on Friday that the U.S. economy gained a
better-than-expected 171,000 jobs during October with more people hired in the
prior two months than previously believed. Unemployment rate moved slightly
higher to 7.9% from 7.8%. During September and August combined, employment gains
were revised higher by 84,000. The number of new jobs created in September was
revised higher to 148,000 from previous estimate of 114,000, while the number of
jobs created during August was revised higher to 192,000 from 142,000. While the
unemployment remains high, hiring has improved over the past four months. The
biggest increase in hiring during October occurred in the professional services,
health care, retail, leisure and hospitality. Average hourly wages, fell 1 cent
to $23.58 while the average workweek remained unchanged for the fourth
consecutive month, at 34.4 hours.
on Day Trading
with confirmed subscription to our Free
Weekly MarketNews newsletter.
Trading Room now open to subscribers.
trial to our Day Trading Rooms
for stocks, futures, forex and futures. Professional Training
Programs available for stocks, futures and forex traders.
trading calls focus on NYSE, NASDAQ and AMEX.
trading calls focus on YM, NQ, TF and ES.
based on New York trading session focus on GBPUSD, USDCAD, USDJPY, EURUSD,
GBPJPY, USDCHF, EURJPY, EURAUD, AUDJPY, CHFJPY, EURCAD, GBPCAD and AUDUSD.
Detailed historic performance for all calls is available on our Market
Opt-in to our free Weekly MarketNews
sent via email, first trading day of the week which includes recap of markets
from previous week and what is ahead for
the upcoming trading week.
Trading Lesson provides new trading subject every month.
Free Chat Rooms - penny stocks, options, stocks, futures and forex! Chat
with other traders any time, day or night, 24-hours a day.
Nov 2, 2012