UNDATED (WTAQ) – Don’t expect much change in what you’re paying at the pump.
That’s the word from GasBuddy.com Senior Petroleum Analyst Patrick DeHaan in the wake of the indefinite shutdown of the lone fuel pipeline serving northeast Wisconsin.
“Companies have already scrambled to go down to Milwaukee and acquire gasoline,” DeHaan says. “So far there hasn’t really been a major impact on Green Bay’s gas prices.”
Prices in the Green Bay area on Thursday averaged $2.486 per gallon, which GasBuddy listed as stable.
But what does this mean for the supply for the region?
“It’s a bit of a headache because a pipeline is not easily replaced by trucks, pipeline capacity is much higher than dozens and dozens of trucks,” DeHaan says. “That could be troublesome for small stations, but the big stations in Wisconsin this is probably something they’re working around.”
In a statement received by WTAQ on Wednesday night, West Shore Pipe Line Company of Illinois said:
“At West Shore Pipe Line Company (WSPL), the safety of the communities we serve is a top priority. During the past several months, the Company has conducted a diligent integrity inspection and extensive testing of its pipeline that runs from Granville Station, north of Milwaukee, to Green Bay, Wisconsin (L254). After a thorough analysis, the Company has decided to suspend service on the line until further notice. WSPL is currently evaluating alternatives for rebuilding the line. The Company has begun working on a long term supply plan for the Green Bay market area and will be communicating with our customers and governmental agencies on potential options. When we have more information concerning next steps, we will make an announcement.“
How long this pipeline will remain out of service is not yet known, as is predicting the future when it comes to refinery issues caused by disruptions like severe weather. That great unknown for DeHaan is what will entice fuel watchers intrigued.
“The longer there’s no major pipeline that serves Green Bay, perhaps more risk to gas prices in the days ahead if there’s not enough trucking capacity to meet demand for gasoline in Green Bay, ” says DeHaan. “If the supply balance tips to where demand is outpacing supply on a regular basis there could be some shortages in the Green Bay area.”
For now, DeHaan feels drivers don’t need to worry about opening up their wallets much more than they normally would.
In a statement Thursday, Wisconsin State Rep. John Macco (R-Ledgeview) agreed with the decision to close the pipeline.
“This is a great example of a conscientious company acting not because of government force, but because of care for the environment, community and economy,” said Rep. Macco. “I applaud the leaders of West Shore Pipeline Company for taking necessary steps to replace the aging pipeline and create a stable system for petroleum for years to come.”
