During a meeting with the Clark County Fuel Commission, Houston-based Kinder Morgan laid two options on the table to expand capacity for the Calnev pipeline that supplies Las Vegas with gasoline and jet fuel.

One option is to build a new 20-inch pipeline that would take the place of existing lines. The second option is to construct a 16-inch pipeline that would operate along with the existing 14-inch line.

While these options are being weighed, Kinder Morgan will boost Calnev's capacity by 15% through expansion projects already under way at the Barstow terminal and the pumping station at Cajon. Upgrading the existing line in Barstow will result in adding 3,200 barrels of fuel each day.

Also nearing completion are two 80 million-barrel storage tanks in Las Vegas.

Dallas-based Holly Energy Partners recently appeared before the newly appointed Fuel Panels, a subcommittee appointed by the Clark County Commission. Holly's proposed pipeline guarantees an extra 50,000 barrels of gas each day for Las Vegas. The gasoline would be run through a 12-inch line from Salt Lake City.

The Clark County School District has financial issues. The number of students is expanding, there is a teacher shortage, and it is estimated fuel costs for the district will increase close to 50 percent for the 2006-07 fiscal year.

Their buses run on 20 percent biodiesel-recycled cooking oil garnered from commercial kitchens and 80 percent petroleum. At this writing the district is paying $2.55 per gallon. They are exempt from fuel taxes.

If you plan on driving off to Minnesota to visit great Aunt Minnie this summer, you'll find fuel prices have leveled off. However, you should consider having a crystal ball at your fingertips and be sure and check it out before you leave. If you see a Category 3 storm heading for the Gulf Coast region, cancel that trip!

More travel news: So far, in the Las Vegas area, gasoline prices have not significantly slowed down tourists. Normally busy Memorial Day visitors came in droves.

Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas said, "In the final analysis, it is likely spending will be relatively flat compared with year ago levels. There might even be a very modest percentage decline. But we should expect the adversity impacts of higher fuel prices on travel spending will be far less than the percentage change in gas prices."

Las Vegan Steve Rypks, a first time owner of a hybrid car, has chosen a funny but totally apt vanity license plate, "MANYMPG."

Michael Geeser, spokesman for AAA Nevada states, "In November, AAA Nevada conducted a member survey to explore attitudes about hybrids. About 80% of respondents said it was important for American drivers to reduce their reliance on gasoline. AboutÊ81Êpercent thought manufacturers could do more to develop and sell hybrids."

Tony Grisson, sales manager of Shack Findlay Honda says, "Recent spikes in gasoline prices have resulted in a great increase in consumer awareness as to hybrids. Right now, we have something like 15 backup orders and pre-sold orders."

The Nevada Taxicab Authority is reviewing gasoline rates on a monthly $3.25 per gallon.

Save the date for the Western Petroleum Marketing Convention and Convenience Store Expo at the Mirage Convention Center, Las Vegas, Feb. 20-22, 2007.

Originally published in the August 2006 issue of the O&A Marketing News.
Copyright 2006 by KAL Publications Inc.