U.S. Media Awakens to Nation’s Looming Diesel Fuel Crisis

327

•

U.S. Media Awakens to Nation’s Looming Diesel Fuel Crisis (legalinsurrection.com)

Wait until press discovers the root cause of the shortage is rabid fossil-fuel hate based on Franken-science it peddles.

Last May, I noted that diesel fuel, which powers many essential supply vehicles (e.g., trucks, boats, and trains) and farm equipment, was in disturbingly short supply.

Now, the “professional” American media is finally awakening to the fact there is a severe diesel fuel crisis looming, which will have a devastating impact on the nation’s economy.

Diesel stockpiles in the U.S. are reportedly at their lowest point since 2008, with only enough fuel for a 25-day supply, according to a recent report from Bloomberg. Demand is also said to be at its highest point since 2007, creating a dangerous supply/demand combination that’s causing spikes in pricing. The Biden administration called the nationwide diesel supply “unacceptably low” and is looking at all options to build up the national supply to help reduce prices.

According to U.S. Energy Information Administration (EIA), the average price of diesel is at $5.34 per gallon. That’s an increase of $1.67 per gallon, compared to this time last year. The area getting hit the hardest is New England, where people burn diesel fuel for heat more than anywhere else in the country. There, stockpiles of diesel fuel are a third of what they normally are at this time of the year. However, the highest cost of diesel fuel is in California, where the average cost is almost $6.50 per gallon, an increase of almost $2.00 per gallon over this time last year.

It’s also a massive price increase over the average cost of gasoline in the U.S. According to the EIA, the average price of gasoline in the U.S. is $3.87 per gallon, with the most expensive region also being California, at $5.84 per gallon.

I must point out that the “25-day” supply is only if no new diesel is pumped, and that won’t be the case. However, shortages and steep price increases will strain the economy, and Americans will have to choose between essential quality-of-life products in ways they have not seen since the 1970s stagflation.

Four reasons have been identified for the current low levels of supply. The first two involve distillates at low levels, and now the refineries that produce them are doing maintenance.

The following two are longer-term problems:

U.S. refinery capacity has fallen in the past few years as several unprofitable refineries were closed. So, that’s a new factor that has appeared in the past couple of years.

But the primary reason is the cutoff of Russian imports. Prior to Russia’s invasion of Ukraine, the U.S. was importing nearly 700,000 barrels per day (BPD) of petroleum and petroleum products. Most of those imports were finished products and refinery inputs that boosted distillate supplies in the U.S.

> Wait until press discovers the root cause of the shortage is rabid fossil-fuel hate based on Franken-science it peddles. > Last May, I noted that diesel fuel, which powers many essential supply vehicles (e.g., trucks, boats, and trains) and farm equipment, was in disturbingly short supply. > Now, the “professional” American media is finally awakening to the fact there is a severe diesel fuel crisis looming, which will have a devastating impact on the nation’s economy. > Diesel stockpiles in the U.S. are reportedly at their lowest point since 2008, with only enough fuel for a 25-day supply, according to a recent report from Bloomberg. Demand is also said to be at its highest point since 2007, creating a dangerous supply/demand combination that’s causing spikes in pricing. The Biden administration called the nationwide diesel supply “unacceptably low” and is looking at all options to build up the national supply to help reduce prices. > According to U.S. Energy Information Administration (EIA), the average price of diesel is at $5.34 per gallon. That’s an increase of $1.67 per gallon, compared to this time last year. The area getting hit the hardest is New England, where people burn diesel fuel for heat more than anywhere else in the country. There, stockpiles of diesel fuel are a third of what they normally are at this time of the year. However, the highest cost of diesel fuel is in California, where the average cost is almost $6.50 per gallon, an increase of almost $2.00 per gallon over this time last year. > It’s also a massive price increase over the average cost of gasoline in the U.S. According to the EIA, the average price of gasoline in the U.S. is $3.87 per gallon, with the most expensive region also being California, at $5.84 per gallon. > I must point out that the “25-day” supply is only if no new diesel is pumped, and that won’t be the case. However, shortages and steep price increases will strain the economy, and Americans will have to choose between essential quality-of-life products in ways they have not seen since the 1970s stagflation. > Four reasons have been identified for the current low levels of supply. The first two involve distillates at low levels, and now the refineries that produce them are doing maintenance. > The following two are longer-term problems: >> U.S. refinery capacity has fallen in the past few years as several unprofitable refineries were closed. So, that’s a new factor that has appeared in the past couple of years. >> But the primary reason is the cutoff of Russian imports. Prior to Russia’s invasion of Ukraine, the U.S. was importing nearly 700,000 barrels per day (BPD) of petroleum and petroleum products. Most of those imports were finished products and refinery inputs that boosted distillate supplies in the U.S.

(post is archived)