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Just heard about a diesel shortage?

Discussion in 'General Industry Questions' started by chidog, May 11, 2022.

  1. Keith Merrell

    Keith Merrell Well-Known Member

    Joined:
    Mar 29, 2020
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    69
    Location:
    Cottonwood, AZ
    Always thought if I couldn't make the coming recession in the business, I'd park everything and go into the sheriff's dept I'm sure crime goes up as prosperity goes down.
     
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  2. Vetech63

    Vetech63 Senior Member

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    I need one of you to plan on supporting me.
     
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  3. joe--h

    joe--h Senior Member

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    The Biden administration canceled all three remaining offshore oil and gas lease sales late Wednesday as gasoline prices hit an all-time high.
    The Department of the Interior (DOI), which oversees all lease sales on federal lands and waters, said a sale spanning 1.09 million acres in the Cook Inlet in Alaska was canceled due to a “lack of industry interest” while two in the Gulf of Mexico were canceled “due to factors including conflicting court rulings,” in a statement Thursday to The Daily Caller News Foundation. With the cancellations, there are no more federal offshore oil and gas lease sales scheduled.
    The three sales were scheduled under the current five-year offshore lease plan that expires in late June. Under the Outer Continental Shelf Lands Act of 1953, the DOI is mandated to issue five-year plans with a list of proposed offshore lease sales.
    However, the Biden administration has delayed issuing a new plan and in April DOI Secretary Deb Haaland said there is still a “significant amount of work” to do before the agency publishes the plan. The administration even suggested that the next offshore oil and gas lease sale wouldn’t take place until after October 2023 in the DOI’s FY23 budget proposal.
    The API and the National Ocean Industries Association (NOIA) published a report in March warning that a failure to issue a new offshore lease plan would result in tens of thousands of lost jobs and a decline of 500,000 thousand barrels of oil per day in domestic production.
    In November, the DOI held a 1.7-million-acre offshore oil and gas lease sale in the Gulf of Mexico. The administration, though, announced it wouldn’t appeal a federal court ruling nixing the sale in February.

    CBS News first reported the lease sale cancelations Wednesday evening.
    https://dailycaller.com/2022/05/12/joe-biden-administration-oil-gas-lease-sales/
     
  4. JD955SC

    JD955SC Senior Member

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    The South
    The powers that be are mulling over price fixing as well. Politics aside, price fixing does two things- creates severe shortages at the “official” price and creates thriving black markets where you get to pay three times what would be the market price for crap because it’s all you can get. Imagine trading s crisp $100 bill for a five gallon can of gasoline that’s half full of water and you have a good idea of what will happen under that scheme.
     
  5. mowingman

    mowingman Senior Member

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    I had a couple of 1 gallon "Gasoline" cans on a trailer where I hauled my skidsteer. These two cans actually had diesel in them, but you would have to know that. I was in back of a place working, and when I came back to the trailer, both cans, empty, were laying on the ground next to the trailer. I have always wondered how the thief's car ran after that. The cans were the red "Gasoline" cans, and I had written "Gas" on them with a marker. I "assume" the person did not check before quickly dumping them in this tank!
     
  6. Spud_Monkey

    Spud_Monkey Senior Member

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    The vehicle in question they put the diesel in was worth less than the diesel they stole.
     
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  7. John C.

    John C. Senior Member

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    Shell and Chevron are reporting record earnings. I wonder how that could happen?
     
  8. Tones

    Tones Senior Member

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    The answer is POLITICS. Unfortunately I can't make any further comment even though petroleum is the one product that brings us together here.
     
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  9. hvy 1ton

    hvy 1ton Senior Member

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    The east coast has less than half the amount of distillate products stored than average and almost 30% less than previous low. Bloomberg said the diesel in storage on the east coast is at an all-time low since they started tracking it in the 90s.
    [​IMG]
     
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  10. ippielb

    ippielb Senior Member

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    Saskatchewan
    I just filled up my 3/4 ton truck with diesel today, wasn't even on the light yet. And it cost me $180 to fuel it up.
     
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  11. chidog

    chidog Well-Known Member

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    kent, wa
    I suppose the official reason for all this is the Diesel fairy.
     
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  12. DMiller

    DMiller Senior Member

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    Location:
    Hermann, Missouri
    I remember the Carter Fuel Embargo period, Reagan came in and all seemed to run away.

    More about international Corporations and making lucrative calls when some idiot gets into a game play in a political sense, the internationals use that idiocy to ply their products at ever expanding profits margins. Some jerk speaks Environmentally Minded as to decisions and the rest of us take the beating.
     
  13. Pony

    Pony Well-Known Member

    Joined:
    Apr 18, 2014
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    200
    Location:
    SE Queensland
    Just filled up my LandCruiser ute, 150 litres at $2 a litre, you do the math.
    Fun times.
     
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  14. Welder Dave

    Welder Dave Senior Member

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    Canada
    Suncor in Canada reported record revenues for the 1st quarter at 2.95 billion! Last year was "only" 880 million or something like that. Suncor also owns Petro Canada. Alberta dropped the carbon tax since they are also getting record royalties from all the producers in the oilsands such as Suncor.
     
    Last edited: May 14, 2022
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  15. joe--h

    joe--h Senior Member

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    Utah
    America’s Diesel Stockpiles Are Rapidly Dwindling, Fuel Rationing On The Horizon
    The U.S. stockpile of diesel fuel, which is vital for the transportation sector and economy at large, hit a nearly two-decade low as fuel prices hit a record high Wednesday.

    The nationwide stockpile of distillate fuel oil — a category that includes diesel and fuel oil — declined to about 104 million barrels, the lowest level since May 2005, the Energy Information Administration (EIA) reported Wednesday. East Coast inventories declined to 21.3 million barrels of diesel fuel or about two weeks worth of supply, the lowest level since data was first recorded in 1990.

    “I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” John Catsimatidis, the CEO of United Refining Co., told Bloomberg on Wednesday. “Right now inventories are low and we may see a shortage in coming months.”

    The average cost of diesel fuel in the U.S., meanwhile, surpassed $5.56 a gallon Thursday, the highest level ever recorded, AAA data showed.
    Diesel, which has been characterized as the “lifeblood of the global economy,” is vital for the construction, mining and agriculture sectors. The transportation industry alone consumed 122 million gallons of diesel per day in 2020.

    “What we’ve seen this year has been the capabilities to turn oil into diesel and gasoline and jet fuel have diminished,” Jacques Rousseau, a managing director at Clearview Energy Partners, told The Daily Caller News Foundation in an interview.

    Rousseau added that diesel fuel inventory levels and production have plummeted due to a decrease in refinery capacity nationwide. Several refineries, which process crude oil and turn it into diesel, have closed in recent years largely due to the COVID-19 pandemic-induced recession in 2020, he said.

    Seven refineries, which processed a total of about 806,000 barrels of oil per day, have shut down over the last three years, leaving the U.S. with 124 operating refineries, down more than 10% since 2016, according to the EIA. Total U.S. operating refinery capacity fell 4.5% between 2020-2021 to 17.7 million barrels per day, its lowest level since 2013.

    Meanwhile, bans on Russian fuels in the U.S. and Europe amid the Ukraine crisis has put even more pressure on the American energy industry which has sought to fill the gaps in the global supply chain. Although the U.S. is a net exporter of distillate fuel oil, it imported 77,000 barrels of the product from Russia in February.

    “A lot of countries won’t accept Russian fuels anymore. So, that has caused a need for more diesel around the world and the U.S. is a major exporter of refined products. So U.S. diesel exports are up,” Rousseau told TheDCNF. “So, you have less capabilities, you got more exports and so what that’s doing is it’s drawing down the inventory levels in the U.S.”

    Increased fuel prices and the decline of diesel inventory levels have already led to higher consumer costs, he added.

    The two largest American transportation and freight companies — UPS and Union Pacific — have upped their individual fuel surcharges to account for the market instability. Union Pacific, which transports freight via rail, hiked its surcharge to a whopping 39% this month.

    In addition, the U.S. food sector has also been impacted by the higher fuel prices. Higher diesel prices are “certainly going to translate into more expensive goods,” Patrick De Haan, an analyst at the research firm GasBuddy, told CNBC.

    Tyson Foods, one of the largest U.S. food producers, noted that ” inflationary pressures across the supply chain” have led to higher costs in its earnings report Monday. Food prices increased 9.4% between May 2021 and April, the largest jump since 1981, according to the Department of Labor.

    https://dailycaller.com/2022/05/12/united-states-diesel-fuel-inventories-prices/
     
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  16. ecnorton2001

    ecnorton2001 Active Member

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    Feb 7, 2022
    Messages:
    37
    Location:
    Upstate, NY
    California is getting close to Europe diesel prices. Watching the giro d'italia and at one station diesel was 1.80 euro per liter, about $7.09 per gallon. It used to be that Europe was much more expensive than the US for fuel.
     
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  17. ecnorton2001

    ecnorton2001 Active Member

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    Feb 7, 2022
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    37
    Location:
    Upstate, NY
    I am sure it started OK from fuel in the line, and ran OK unless the check engine light came on (lol). But starting the engine cold might be a problem base on what fraction of the gas in the tank is actually diesel :)
     
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  18. ippielb

    ippielb Senior Member

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    Mar 30, 2014
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    512
    Location:
    Saskatchewan
    Thats exactly what it is here in Saskatchewan Canada as well. $1.99, and i felt that was "cheap" mid winter i was having to pay $2.25 while i was in the mountains.
     
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  19. aighead

    aighead Senior Member

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    Apr 25, 2019
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    1,567
    Location:
    Dayton, OH
    It sounds like I'm below the average price but I went and filled up my 4 five gallon cans for 100 bucks yesterday. That's too much!
     
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  20. funwithfuel

    funwithfuel Senior Member

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    Mar 7, 2017
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    Occupation:
    Mechanic
    Location:
    Will county Illinois
    Y not. Conflict of interest? Just asking.
     
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