What’s That: Colonial Pipeline

When nearly half of the East Coast's fuel supply can hinge on a single system, you know it's important. That system is the Colonial Pipeline, a 5,500 mile artery that keeps trucks driving, planes flying, and businesses running. This pipeline fuels millions of industries and businesses across the U.S. and plays an important role in maintaining the flow of commodities across the U.S. supply chain.

Spanning from Houston to New Jersey, the Colonial Pipeline links more than two dozen Gulf Coast refineries to East Coast hubs like Atlanta, Washington D.C., and New York. Every day, it pushes over 100 million gallons of refined fuel. The Colonial Pipeline's operations have a direct and measurable impact on fuel pricing, supply availability, and logistics planning throughout the Southeast and Mid-Atlantic regions.

Strengthening the Fuel Supply Chain

Long before it became a household name during the 2021 cyberattack, the Colonial Pipeline was already reshaping America's energy landscape. In the early 1960s, Colonial Pipeline Company began an ambitious infrastructure project that would reshape fuel distribution in the United States. Within just one year, the company completed and filled the first 1,000 miles of what would become the largest refined products pipeline by volume in the country. By 1964, the full system was operational, connecting Houston, Texas to Linden, New Jersey, ultimately establishing a sizeable energy corridor that serves millions across the Eastern U.S.

More than a conduit for fuel transportation, the Colonial Pipeline has become a lifeline for the U.S. supply chain. Supplying nearly 45% of the fuel consumed on the East Coast, it serves over 50 million Americans across 14 states. Its strategic role connects Gulf Coast refineries to major markets in the Southeast and Mid-Atlantic, making it indispensable for various operations such as commercial trucking, aviation, heating, and manufacturing. As demand for fuel continues to rise, Colonial remains a central part in ensuring energy security and economic stability.

What's the Economic Impact of the Colonial Pipeline?

What happens when that lifeline is cut? In May 2021, a cyberattack forced the pipeline offline, and within days, gas stations ran dry, prices soared, and panic buying spread across the East Coast. The economic ripple effects were immediate and severe. Fuel prices increased by up to 5 cents per gallon in the Lower Atlantic, New England, and Central Atlantic regions. This uptick in fuel prices was attributed to outages at numerous gas stations and heightened consumer demand due to the pipeline disruption.

Additionally, bottlenecks and capacity constraints have forced increased reliance on foreign imports, compressing refining margins and raising consumer costs. With the East Coast accounting for 30% of total U.S. oil demand, any disruption to Colonial's flow threatens regional stability and national energy security.

How the Colonial Pipeline Impacts Fuel Buyers

Businesses across the Southeast and Mid-Atlantic rely heavily on the Colonial Pipeline to keep fuel supply consistent, control costs, and plan logistics effectively. As the nation's largest refined products pipeline, Colonial is the foundation of fuel distribution across the East Coast.

Colonial's performance directly impacts how businesses that rely on fuel plan, budget, and operate. So, how can you stay ahead of potential supply constraints? While disruptions can't always be avoided, staying informed and working closely with trusted supply partners can help you minimize risk and keep operations running smoothly. That's where Mansfieldcomes in. We continuously monitor market conditions, pipeline activity, and supply trends so you can stay ahead of potential challenges and keep your business moving forward. Ready to partner with a fuel supplier you can count on? Now You Can. Reach out to a team member today!