Time to break out the short sleeves, hit the golf course and maybe even start planting your garden . . . winter is over! In some of our previous blogs you may have read about this past winter and how it has been a bit harsher and prolonged than previous winters. While most can celebrate the finish of winter storms we prefer to prepare and stay cautious of the tropical storms/hurricanes that are now expected for 2018. According to Colorado State University, this hurricane season is expected be more active bringing 14 named storms, 7 hurricanes, and 3 major hurricanes. This brings a higher forecast than the 30-year average (12 named storms, 6 hurricanes, and 2 major hurricanes). So what does this mean for the U.S.?
Probabilities for at least one major hurricane landfall on each of the following coastal areas:
- Entire continental U.S. Coastline – 63% (average for last century in 52%)
- S. East Coast including Peninsula Florida – 39% (average for last century is 31%)
- Gulf Coast from the Florida Panhandle westward to Brownsville, TX – 38% (average for last century is 30%)
While these 2018 probabilities may not be quite as harsh as 2017’s results, it could wreak havoc to the fuel industry as it did this past year. Notable examples would be Hurricane Harvey which disrupted the Colonial Pipeline for nearly a month. During that time 25% of U.S. refining capacity was shut down resulting in multiple lines on the Colonial Pipeline to be disrupted. As many can recall, this dramatically affected the East Coast primarily in the South leaving racks dry of product, and while the North may have not felt the same pain in product availability they certainly felt the rise in market price.
Hopefully those reading this will be reminiscing on the trust they put in Guttman Energy during the 2017 Hurricane season. If 2018 should bring the challenges that some expect, rest assure that Guttman Energy will be here to help with your fueling needs, whether it be supply assurance locking in fuel contracts or providing market news/updates we’ll be here to keep our customer’s businesses running at a high level.