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NEW YORK (Reuters) - A third day of gasoline "panic buying" among storm-stricken motorists in the New York area and New Jersey prompted authorities to tap emergency oil reserves and ordered the military to dispatch fuel on Friday, while limited deliveries from pipelines and oil barges offered a glimmer of relief.

Four days before the U.S. presidential election, the Obama administration made an all-out effort to ease the crisis, authorizing the Defense Logistics Agency to buy and deliver up to 22 million gallons of fuel for the region, waiving a rule barring foreign-flagged vessels transiting U.S. ports and loaning out diesel from the Northeast heating oil stockpile.

New Jersey Governor Chris Christie ordered gasoline rationing starting at noon on Saturday, an action likely to draw comparisons with the 1970s oil crisis.

New York temporarily lifted tax and registration requirements on tankers docking in New York Harbor, which had just reopened to oil vessels. "There should be a real change in conditions and people should see it quickly," New York Governor Andrew Cuomo said.

While the shipping waivers sent benchmark New York gasoline futures 2 percent lower, they will do little to address the immediate obstacle to getting fuel to consumers: power outages that shut two-thirds of the filling stations in New Jersey and the New York City area were still hindering service at oil terminals and refineries in the region.

While the main fuel pipeline from the U.S. Gulf Coast region resumed shipments on Friday and a handful of oil storage terminals began shipping fuel again under generator power, many remained shut. The vast IMTT Bayonne terminal and storage farm, which hosts one-fifth of the harbor's capacity, is due to reopen sometime next week, its co-owner said.

Faced with losing another day of business, William Torrens got up at 5 a.m. in East Rutherford, New Jersey, to queue for fuel. The owner of All Clear Plumbing waited four hours in a six-block line at a Sunoco station before finally getting gasoline for his truck and home generator.

"I haven't seen something like this since I was a kid and there was a gas shortage," Torrens said, adding that the shortage was costing his business money.

"I can't spare a truck to sit for four hours in line. When my guys run out of gas, they're going to have to sit."

In Brooklyn, taxi drivers hunted for fuel. Long lines formed outside even empty stations after rumors spread that they would soon receive fuel deliveries. Officials said the number of cabs on the road by Friday morning was down 24 percent from last week.

By late on Friday, motorist group AAA said that nearly half of all service stations in New Jersey were now open for business, up from 35 to 40 percent earlier in the day, while a smaller number of New York City and Long Island stations had reopened. But the U.S. Energy Information Administration said two-thirds of service stations in the New York City area were still without gasoline for sale.

PRICE GOUGING

Prices at the pump have remained steady despite the shortages, AAA said, averaging just below $4 a gallon in New York City, 2 cents lower than last week. However, on Long Island, where only a third of all stations were working, average gasoline prices jumped 5 cents from a day earlier.

Online, Craigslist users started offering gasoline for as much as $15 a gallon to motorists and homeowners who did not want to brave the lines.

There were some signs that the situation could improve as the complex New York Harbor network of terminals, storage tanks and pipelines was finally returning to service.

Speaking with Governor Cuomo at a press conference, Rear Admiral Daniel Abel of the U.S. Coast Guard said that fuel barges in New York Harbor may be allowed to pump gasoline directly from barges into oil tanker trucks waiting on the dock.

"We're looking at creative alternatives," Abel said. "They (can) hose the fuel directly from the barge to a truck, if they can do that safely."

An oil tanker carrying 2 million gallons of gasoline docked overnight in Newburgh, New York, 60 miles north of Manhattan. Other ships were offloading cargoes in the harbor after being stuck at anchor for the past week.

Colonial Pipeline, a 5,500-mile (8,900-km) network that runs from the Gulf Coast refining center up the eastern seaboard, said late on Thursday that it had resumed fuel deliveries at its facility in Linden, New Jersey, the terminus of the line.

The Federal Emergency Management Agency (FEMA) said the U.S. Defense Logistics Agency would buy up to 12 million gallons of gasoline and 10 million gallons of diesel for the area, while the Department of Energy would lend 2 million gallons of diesel to emergency responders in New York and New Jersey, starting as early as Saturday.

The Environmental Protection Agency extended a waiver on clean diesel fuel rules to cover the New York City area and Pennsylvania, allowing them to use higher-sulfur home heating fuel in generators and vehicles. New Jersey received similar relief from the Clean Air Act rules earlier in the week.

SHORT ON POWER AND PATIENCE

The majority of oil terminals around New York Harbor remained shut without power, while some were damaged in the storm. They have gasoline in their storage tanks, but without electricity they cannot move it to tanker trucks for distribution.

Phillips 66 Bayway refinery in New Jersey, known as "the gasoline machine" by oil traders, may be shut for weeks due to flood damage, a source familiar with operations said. The company has said that a decision on when to reopen would be made "once all assessments are complete." A third of the region's refining capacity was shut by the storm.

Terminal operator Buckeye Partners LP said FEMA was helping to bring power generators to terminals. FEMA spokesman Lars Anderson confirmed in a blog post that the agency was "coordinating with states and the private sector to accelerate the distribution of fuel to retail locations."

Those measures offered little comfort to people waiting in long lines with no guarantee that supplies would last until they got to the front of the line or that enough power would be restored to get more stations open.

Juliana Smith, a full-time student, spent 2-1/2 hours in line to fill two five-gallon containers on Friday, an hour more than on Thursday. "It's psychotic," she said. "People are angry. We have no power. No heat. We need gas for the generator and our Ford Explorer, which is a monster."

There was "panic buying" in the region, Hess Corp Chairman and Chief Executive John Hess said on a conference call.

Travel through tunnels and across the three main bridges to Manhattan was down 47 percent on Friday morning, according to data from the Port Authority.

"This is in part due to the gasoline shortages. It's probably also due to people staying home today - they've really had to fight to get where they want to go over the past few days," said New York Department of Transportation spokesman Adam Levine.

Rumors circulated on social media about which sites had gas or were due to get a delivery.

"I heard it on Facebook," said Manuel Ortiz, 33. He was first in the line of more than 60 people waiting with red and orange gasoline canisters at a station in Brooklyn.

Two police officers placed a blue barrier in front of Ortiz, a delivery truck driver who said he had been waiting since 2 a.m. He said a fist fight had broken out when one driver tried to cut in front of another.

"I just want the gas. I don't care how long I have to wait," said Ortiz.

(Additional reporting by Chelsea Emery and Emily Flitter, Joshua Schneyer and Jonathan Leff in New York, Soma Das in Bangalore; Editing by James Dalgleish, David Gregorio, Dan Grebler and Jim Marshall)

Vish M

Climatic crises that happened a few times per century is now happening with greater frequency, like a few times per decade . People have to re-think how they live and where they live because these changes will continue to devastate countries , regions , hemispheres and the world. No one is safe anymore. I spent the last few days doing relief work without sleep for days on end and I can safely say that looking at peoples' inability to deal with such crises is a clear indication people need to get back to basics. My wife and kids are now appreciating the years I subjected them to survival training , keeping and staying physical fit , indulging in agriculture and above all, knowing and understanding there will come a time , in our lifetime , where we may be presented with situations where we may have to hunt to survive or, kill people who threaten our safety and security. Sandy proved to many naysayers that we need to become more self reliant and independent . Now I got family and relatives calling and telling how we need to organize the family into survival teams, create evac plans , survival plans etc. Just before the storm I was having a chat with a cousin and we were talking about people in Guyana and how they have lost their ability to plant , do animal husbandry , understand their environment and landscape and know natural remedies ...some cant even do first aid ! Folks , if Sandy is not a wake up call , I dont know what will be !

FM

If the Republicans are right that big government is bad (some want no government) and that private businesses do better, why doesn't Con Edison or Exxon/Mobil has a contingency plan in place to ensure that there is no disruption in their services? Why do they have to turn to the same big government for help when they keep claiming that they don't care for it? Amazing how many people still don't understand the core purpose of government.

FM
Originally Posted by ABIDHA:

FYI, big government doesn't necessarily mean effective government. Government had an obligation to be responsive to diasters when there is an urgent need regardless if people believe in smaller government. The size of govt should not be taken out of context for political game during a time of crises.

Glad you brought up the term effective government. Since I have lived in America stretching back some 26 years, the more effective governance was during the twelve years of Democratic presidency. The Republicans have no argument there although they like to think they do.

FM
Originally Posted by ksazma:

If the Republicans are right that big government is bad (some want no government) and that private businesses do better, why doesn't Con Edison or Exxon/Mobil has a contingency plan in place to ensure that there is no disruption in their services? Why do they have to turn to the same big government for help when they keep claiming that they don't care for it? Amazing how many people still don't understand the core purpose of government.

Under any system, Govt is the guarantor of last resort.  Businesses role is to manage their risk, ensure sustainability and business continuity in their interest of the public they serve. Business cannot plan for every conceivable contingency, this is the role of Govt, including national defense.  Govt also have the executive power to suspend rules and regulations which may inhibit effectiveness in a major emergency, such as the suspension of the Jones Act, etc.  The Govt also ordered the military to draw on the emergency fuel reserves to supply the public.  No business can do that.

 

All businesses of regional or national scale do have, by law, contingency plans in place which are reviewed and audited by concerned Govt agencies.  These are limited in scope and the Govt's own plans dove-tails with their plans.  However, all contingencies can never be covered, but I'm sure many will be reviewing their plans to identify needed improvements.

 

FEMA and such are needed and should be with Govt.  Like national defense, I do not view these as "Big Govt", this is the role of Govt.

FM
Originally Posted by Chief:

The people are suffering whislt Bloomberg is still trying to paddle his way out of some of the mess he created.

No body suffering, people just trying to milk the system.  This was not an earthquake, why didn't people stock up and take measures to sustain themselves until thing can normalize.  People sit on their hands and expect someone to come and bail them out when they in shit.

FM
Originally Posted by baseman:
Originally Posted by Chief:

The people are suffering whislt Bloomberg is still trying to paddle his way out of some of the mess he created.

No body suffering, people just trying to milk the system.  This was not an earthquake, why didn't people stock up and take measures to sustain themselves until thing can normalize.  People sit on their hands and expect someone to come and bail them out when they in shit.

SHUT YOUR STUPID MOUTH.

Chief
Originally Posted by baseman:
Originally Posted by ksazma:

If the Republicans are right that big government is bad (some want no government) and that private businesses do better, why doesn't Con Edison or Exxon/Mobil has a contingency plan in place to ensure that there is no disruption in their services? Why do they have to turn to the same big government for help when they keep claiming that they don't care for it? Amazing how many people still don't understand the core purpose of government.

Under any system, Govt is the guarantor of last resort.  Businesses role is to manage their risk, ensure sustainability and business continuity in their interest of the public they serve. Business cannot plan for every conceivable contingency, this is the role of Govt, including national defense.  Govt also have the executive power to suspend rules and regulations which may inhibit effectiveness in a major emergency, such as the suspension of the Jones Act, etc.  The Govt also ordered the military to draw on the emergency fuel reserves to supply the public.  No business can do that.

 

All businesses of regional or national scale do have, by law, contingency plans in place which are reviewed and audited by concerned Govt agencies.  These are limited in scope and the Govt's own plans dove-tails with their plans.  However, all contingencies can never be covered, but I'm sure many will be reviewing their plans to identify needed improvements.

 

FEMA and such are needed and should be with Govt.  Like national defense, I do not view these as "Big Govt", this is the role of Govt.

You are preaching to the choir. If people and business still in certain circumstances need government intervention, then they should be willing to pay for it. Incidentally, the stimulus went mostly to big businesses and still the Republicans try to sell it as going to the 47% underserving part of the American population who would not take personal responsibilities for their lives. Why didn't those big business have a contingency rather than have the government bail them out? That was man made not some earthquake or hurricane. The current breed of Republicans speak from both sides of their mouths.

FM

Bloomberg endorsed Obama because he realizes his Green Plans are good for america . Soon Gov Christie of NJ will leave the Republican party as a result of what happened to Jersey during Sandy.States that got hit by natural disasters in recent times will vote Obama because his Gree plans make more sense . I tell you the greatest and gravest challenges facing the entire world is severe climatic changes.

FM
Originally Posted by baseman:
Originally Posted by Chief:

The people are suffering whislt Bloomberg is still trying to paddle his way out of some of the mess he created.

No body suffering, people just trying to milk the system.  This was not an earthquake, why didn't people stock up and take measures to sustain themselves until thing can normalize.  People sit on their hands and expect someone to come and bail them out when they in shit.

Are you sure you don't want to withdraw the above statement? You could not be aware of just what is happening in some areas of NY and NJ and make such an insensitive, cruel and heartless statement unless of course you are an insensitive, cruel and heartless man. Seems to me you owe the people of NY and NJ an apology.

FM
Originally Posted by Angel:
Originally Posted by baseman:
Originally Posted by Chief:

The people are suffering whislt Bloomberg is still trying to paddle his way out of some of the mess he created.

No body suffering, people just trying to milk the system.  This was not an earthquake, why didn't people stock up and take measures to sustain themselves until thing can normalize.  People sit on their hands and expect someone to come and bail them out when they in shit.

Are you sure you don't want to withdraw the above statement? You could not be aware of just what is happening in some areas of NY and NJ and make such an insensitive, cruel and heartless statement unless of course you are an insensitive, cruel and heartless man. Seems to me you owe the people of NY and NJ an apology.

Take it easy deh lil girl.  Baseman is stocked up but just got my first gasoline delivery this morn.  Today was my first for a while of bhunjal chicken and basmati.  I know things rough with some, hope all get's better soon.

 

I talk to mi girl in Queens, man she enjoying bhunjal duck since Tuesday and laughing at me with mi sardines and channa.  She having fun she cannot go to work.

FM

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