AM-05-37 Understanding Operational Risk in Petroleum Downstream: Best Practices to Reduce Operational Risk

Description:

While market disruptions in the US petroleum downstream are common occurrences, some recent ones indicate how serious they can be to both consumers and petroleum companies: When a pipeline that carries gasoline from Tucson to Phoenix ruptured in 2003, the resulting two-week shutdown caused retail shortages and rising prices not only in Phoenix, but also in California because California’s normal supplies had to be diverted to meet the demand in Phoenix. Prices, which rose from $1.80 per gallon to $2.20 per gallon over seven days, remained high for a number of weeks.