Monday, November 28, 2022

MENU

Are we running out of diesel fuel?

Recent headlines have drawn attention to a shortage of diesel fuel across the country. The number of days of current supply has dropped to 25 amid problems with petroleum transportation and shuttered U.S. refineries.

RVers might experience shortages of retail diesel fuel in the weeks ahead, particularly in the Eastern and Southeastern regions of the country. Prices will be high across the continent.

According to the U.S. Energy Information Administration (EIA), stocks of diesel fuel and other distillate fuel oils were down to 106 million barrels as of October 21, 2022, which the agency says is the lowest for the autumn season since it began collecting data in 1982.

Are we “running out” of diesel?

Yes and no.

Some pundits point to the dwindling supply as an indication that the fuel supply will be exhausted by the end of November. The practical reality is that there are increasing shortages of diesel fuel. In contrast, the diesel fuel supply will trickle out at some level if refineries continue to process crude oil for domestic consumption. But according to the EIA’s Weekly Petroleum Status Report dated October 26, 2022, distillate fuel inventories were 26 million barrels (-20% or -1.94 standard deviations) below the seasonal average for the previous ten years.

The shortages are wreaking havoc with wholesale and retail deliveries of diesel and home heating fuel. One supplier, Mansfield Energy Corp., a major fuel supplier in the Southeastern U.S., has notified clients that it will require 72 hours’ notice for fuel deliveries.

“At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” Mansfield Energy said in its message to clients.

John Kemp, senior marketing analyst for Reuters, wrote in Reuters Business News on October 27, 2022, “Stabilizing then rebuilding inventories to more comfortable levels will require a significant slowdown in freight movements and manufacturing activity. A deeper and more prolonged slowdown in the United States, Europe, and Asia will be needed to boost inventories significantly.”

What caused the nation’s diesel fuel crisis?

Refinery capacity decline spells trouble.
Nine U.S. oil refineries have been shuttered during 2020-2022, reducing diesel fuel supply.

A perfect storm

A perfect storm of factors has substantially impaired the diesel fuel supply. The COVID-19 pandemic temporarily reduced the demand for fuel. At the same time, the Biden Administration was shutting down petroleum pipelines; pressuring producers, resulting in refinery shutdowns; and imposing a ban on imports from Russia, a major supplier of petroleum to the distillate fuel market. The result is shortages and high prices. In addition, during the mid-point of the pandemic in 2021, five U.S. oil refineries closed. Producers shuttered a total of nine refineries from 2020 to date. U.S. refinery capacity has declined by more than 1 million barrels per day.

Supply and demand have driven prices higher at the pump, on average $5–$6.50 per gallon across the country. Shortages and high prices exacerbate an already acute U.S. supply chain problem.

Will the flow of diesel fuel stop this month or next? Probably not. But supplies will be short, delivery times will be longer and, of course, prices will be higher.

##RVT1077b

Comments

Subscribe
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

124 Comments
Newest
Oldest
Inline Feedbacks
View all comments
WayneG
20 days ago

On October 5, OPEC+ announced that it would be cutting 2 million barrels a day. Here’s why https://theintercept.com/2022/10/20/saudi-oil-production-cut/

David Jackman
20 days ago

For those who believe politics do not belong in an RV forum; you are affected by politics…..whether you participate or not.

Casey
21 days ago

This is some pretty {bleeped} poor writing. Biden shutting down a non existent pipeline didn’t raise oil prices. As for shutting down Russian imports would you propose we keep funding the Russian war machine? Seriously? In fact most of the problem isn’t oil price at all rather it’s lack of refining. Producing more oil domestically does little good because it will just get put on a ship and sold to the highest bidder overseas because after all, this is a global market. Funny how you failed to mention the record profits all big oil are showing right now. This is the result of an industry with few regulations that produce a product we all have to have. How many industries are there where a company can actually make more money by producing less product? The oil industry has little incentive to improve. For most companies if they want to make more money then they have to produce more. Not the oil industry. They ARE the problem.

Joe
21 days ago

Per an article in the Washington post dated June 21, 2022, refineries across the country are being closed and converted to other uses as owners will not make costly upgrades and repairs as America moves away from fossil fuels leaving their future uncertain.
Throughout the last few years the administration has put pressure on banks and also Wall Street to not make loans to the oil industry.
The cart is well ahead of the horse! Folks buy a good bicycle and good shoes while the prices are low. People are already trying to figure out if they should buy heating oil or food for the table.

Joe
21 days ago

I’m waiting to see what happens to the Enbridge Energy’s Line 5, a pipeline network that carries Canadian oil across I think the stratus of Mackinaw into the Midwest through Michigan. Gov. Gretchen Whitmer has been advocating for the pipeline to be shut down for years however it’s a political hot potato, I fear that it could be shut down If she wins re-election. On the other side of the story when Joe went begging for oil from Russia and Venezuela Canada’s Prime Minster Trudeau offered Canadian oil however was turned down by the administration. Warren Buffett would have been in his glory to ship oil on his railroad BNSF

KellyR
21 days ago

Hmmm, an RV newsletter and not one comment about not having fuel for their diesel pusher or tow vehicle. To go far into the field, not one comment on the costs to farmers and our food supply. One man, out of all nation’s leaders, is responsible for the cost of oil? In the 1970s gas stations were actually running out of fuel. We had to run from station to station to gas up and then only allowed 5 gallons. Oh, that’s right it was Nixon and Ford at the time.

chris
21 days ago
Reply to  KellyR

We’ve had wild fluctuations in the price of fuel for decades, but I don’t recall the sitting president being blamed for it.

KellyR
21 days ago
Reply to  chris

Yep, I agree. So why now?

chris
21 days ago
Reply to  KellyR

A question probably best left unanswered for the time being.

KellyR
21 days ago
Reply to  chris

Ahhh, Thank You.

Bob p
21 days ago
Reply to  KellyR

Read my comment.

Joe
21 days ago
Reply to  KellyR

Pat, I’m ready to solve the puzzle. First Obama put the hit on the oil industry. Now Joe has taken it to a new level! Just this past week he threatened to close all coal power plants and yesterday said he will stop all drilling. His administration has put pressure on lending institutions and also Wall Street to stop loaning $$ and doing business with the oil industry. Refiners are closing due to uncertainty in the future like wise with drillers and oil pumpers. He called for all of this and now you wonder why he is being blamed, come on man!

Bob p
21 days ago
Reply to  Joe

They can’t see the forest for the trees!

Bob p
21 days ago
Reply to  KellyR

That was OPEC not a president, this time it’s on the president’s war on fossil fuel. Look at his campaign speeches, he promised to shut down the oil industry. Wake up!

Vincee
20 days ago
Reply to  KellyR

Kelly, I think Lonewolf replied that the nation runs on diesel.

Diana M
20 days ago
Reply to  KellyR

Exactly. If there were an actual shortage there would be lines at each station or signs saying “NO Gas”. This guy should stick to RV and stay out of politics. I’ll never read another article. Unsubscribing now.

Admin
RV Staff(@rvstaff)
20 days ago
Reply to  Diana M

And yet you just went and posted another comment. Just sayin’. 😆 –Diane

KellyR
20 days ago
Reply to  Diana M

I don’t understand unsubscribing RVTravel because of an article written by Randal Brinks that basically quoted different sources about a POTENTIAL event. I just found it interesting that the comments turned to politics as opposed to how the RV industry may be effected and, for me, how it would effect food production in our nation – no fuel equals no farming. If the comments of others, or I, or the article itself were not to your liking, fine, but I don’t think it in any way reflects upon RVTravel. I do not want to be part of the reason for leaving a good publication.

Sharon
21 days ago

One has to wonder if this is not just another ploy to keep us in one place and frightened for the life style we enjoy. Each political party is playing the game. Perhaps after the election we will be able to sort things out as to what is true and what is not. I do believe, however, that the whole country would be better off it construction on the Keystone Pipeline were to resume and our domestic oil companies were allowed to explore and resume pumping crude.

Bob p
21 days ago
Reply to  Sharon

Amen, we were energy independent and sell oil to the world before the present administration.

Peter
21 days ago
Reply to  Bob p

1) we export nearly as much as we import; different types of oil, some we have an abundance, some a shortage. 2) we were never energy independent. 3) Oil from the strategic oil reserves are sold on the global market. 4) Russia’s invasion of Ukraine and Saudis reluctance to increase production affects global oil supplies and pricing. 5) Tar sands oil from the Keystone pipeline primarily goes to the gulf for refining and shipping to other countries, has little impact on the U.S. market. 6) Our previous president ask the Saudis to cut production to increase prices. That went into affect in September/October of 2020. Soon after, demand greatly increased as the Delta variant wound down and travel resumed.

chris
21 days ago
Reply to  Peter

Finally, some real reasons.

Diana M
20 days ago
Reply to  Sharon

The Keystone pipeline is complete and running. The Keystone XL extension was stopped, because it was for CANADA to pump oil from their country, across our land, to the ports down south. It had NOTHING to do with OYR supply. And when finished, would ha e employed fewer than 50 people, mostly Canadians.

R Wray Willson
21 days ago

I look at this site as being about RVing NOT politics. Your opinion is yours keep it that way.

Bob p
21 days ago
Reply to  R Wray Willson

Politics is affecting our RVing!

Gary
20 days ago
Reply to  R Wray Willson

Yet, here you are. You don’t have to read the article or the comments.

Purple Bob
21 days ago

After I vote, I’m gonna go block the road coming out of the cemetery, seems too many of those folks have been voting early and often in the last few elections! Who was it that said “elections have consequences? “

Wayne
21 days ago

Politifact should be called Politifarce as they have a long track record of left leaning bias. I could bore you with lots of links.
As to your second “link”…I wonder if you read it as it confirmed high prices are the result of policy.

McTroy
21 days ago
Reply to  B.L.

Thank you!

Bob p
21 days ago
Reply to  B.L.

Quit reading fake news.

chris
21 days ago
Reply to  Bob p

Isn’t it something? Since 2016, the news is fake, the government is corrupt, and elections are rigged. Wow.

Joe
20 days ago
Reply to  chris

I have said since the first Bush President that a Republican cannot get a fair shake with the media. As a life long Democrat it scares the heck out of me that some people put their blinders on about issues with their own party and also think it would be a good idea to do away with the Republicans. I always thought that a plane needs 2 wings to fly, take away 1 and it is doomed to a fiery crash.

B.L.
20 days ago
Reply to  chris

It’s easier for some people to believe that. Unfortunately the presidency is a popularity contest, and Trump just isn’t that popular. Probably because he insults and screws everyone but the sycophants.

B.L.
20 days ago
Reply to  Bob p

I’m pretty sure you’re the one doing that, since my info is verifiable.

Wayne
21 days ago

And another thing.
For those who want to blame the industry as greedy and excuse the current administration and suggest it’s not policy that is impacting prices…consider this.
Venezuela has lots of oil yet is poor. Japan on the other hand has none yet is prosperous.
Man made crises? You bet.

Dave
21 days ago
Reply to  Wayne

One of the smarter comments on this thread. People so in need of what fox tells them

Bob p
21 days ago
Reply to  Dave

They all mocked Trump while watching MSNBC, CNN Etc. Now even CNN says Trump was right.

Wayne
21 days ago

Western leaders are “globalists”. They have no allegiance to their own people. They should be tried for treason.
The plan is to lower the wests standard of living and mobility to a standstill.
“The forest kept shrinking but the trees kept voting for the axe. For the axe was clever and convinced them that since his handle was wood, he was one of them.”

MattD
21 days ago
Reply to  Wayne

Wayne, you get a standing ovation…you are so dead on and brutally to the point.

mike
21 days ago
Reply to  Wayne

Spot on Bro. We will see what can be done about it Tuesday. Vote RED!!

B N S
21 days ago
Reply to  Wayne

Outstanding Clarity, Wayne!

Gary
20 days ago
Reply to  Wayne

…but…but….no mean tweets. Smh.

Charles
21 days ago

This administration has not helped!!!!! Worst ever!!!

John Macatee
21 days ago

Two years ago: $2.00 per gallon. No war in Ukraine, border security close to completion, less 5 million illegal aliens , rate of inflation, crime, taxes, & gov spending through the roof. The buck stops with dear old brandon. Actions speak louder than words.

Charlie Sullivan
21 days ago
Reply to  John Macatee

Amen! Too bad the uninformed voters don’t, or haven’t, got it. They keep bumbling along voting for the same politicians (over and over) that are ruining this country. When will they finally open their eyes and see what’s happening?

chris
21 days ago

The last ‘non politician’ we elected tried to overthrow an election and stole classified documents. I can live with $4 gas.

Dave
21 days ago
Reply to  chris

Here here Chris!!

Larry Lee
21 days ago
Reply to  chris

Look into where Obama’s classified documents are being stored. You will be stunned at how insecure the location is.

Bob p
21 days ago
Reply to  chris

The non politician put this country back at the top, no wars, peace in the Middle East. Now we have the highest inflation in over 40 years, gas at record highs, diesel fuel running out, by the way in case you didn’t know everything except babies comes by diesel trucks, the NE quadrant of this country relies on heating oil(read lower quality diesel) for heating their homes, that also will affect millions on people. Once a refinery shuts down they can’t just walk in a flip a switch and it all starts back up. This is November, I would imagine it’s getting mighty chilly in the NE now, oh that’s right according to the present party they can warm up in the sun if it’s shining, and when the snow covers their solar panels it’s easy to go up on the roof and brush it off, be careful don’t slip and fall. WAKE UP PEOPLE YOURE PLAYING RIGHT INTO THE SOCIALIST PLAN!

Mark O.
20 days ago
Reply to  Bob p

Actually it was 75 degrees the last four days in CT so you would imagine wrong, let’s find someone political to blame that on.

Kevin C
21 days ago

Contemplate these actions at the ballot box!

Lonewolf
21 days ago
Reply to  Kevin C

Kevin, you hit the proverbial nail squarely on the head!

James
21 days ago

Build back better. ” not a joke “

Bob p
21 days ago
Reply to  James

Have you seen anything building yet, we’re halfway through that plan, I have seen a shovel dig into the proverbial ground breaking pile of dirt yet.

Mark O.
20 days ago
Reply to  Bob p

You’re living in the wrong place, they’ve been paving everything in sight around here this year. And it’s about time too……

Michael Gardner
21 days ago

American companies have been selling overseas where they can make more money!

Lonewolf
21 days ago

Mike, did you read the article at all? Nine refineries closed, pressure from Biden and Co……?

Bob p
21 days ago
Reply to  Lonewolf

They don’t hear about things like that watching fake news! They don’t have enough common sense to watch Fox.

chris
20 days ago
Reply to  Bob p

Is that some kind of a joke?

Mark O.
20 days ago
Reply to  chris

It’s should be but unfortunately it’s not. “Fair and Balanced”? I think not.

Spike
21 days ago

All the crude in the world will mean nothing if there is no investment in refineries to process it. And what company in their right mind would pour hundreds of millions or billions
of $$$ into more refineries when the US Government has told them the goal and their strategy is to eliminate fossil fuels as quickly as possible? The situation is not “oil company greed.” It’s oil companies reacting to current policies which impacts their long term investment decisions.

Energy Secretary Jennifer Granholm & Transportation Secretary Pete Buttigeg: What SPECIFICALLY are you doing? I want to see these two national leaders on TV laying out viable and realistic plans!

But I won’t hold my breath…

Lonewolf
21 days ago
Reply to  Spike

Just look at their pedigree! Especially “Mayor Pete”. Late-night comedians couldn’t make up this pair if they tried.

Bob p
21 days ago
Reply to  Spike

Brandon keeps saying he’s opened drilling rights, yeah 12 month lease. It takes 4-5 years to set up and start drilling and then hope you hit oil, 12 months ,HAH! Talk about far left he’s so far out in left field he can’t see home.

Gary
20 days ago
Reply to  Bob p

He is just a puppet.

Ron
21 days ago

Nothing but a scare tactic by the big oil companies which received the largest tax giveaway ever in 2016. They are holding supplies back until their candidates which they have bought are elected.

James
21 days ago
Reply to  Ron

Sure ron

B N S
21 days ago
Reply to  James

+ 1

Charlie Sullivan
21 days ago
Reply to  Ron

Are you serious?

chris
21 days ago
Reply to  Ron

As good a conspiracy theory as any.

Bob p
21 days ago
Reply to  Ron

Going back to the fifties, Dream on Dream on Teenage Queen

Mark O.
19 days ago
Reply to  Ron

And your source of information for this claim is?

Subscribe to our newsletter

Every Saturday and Sunday morning. Serving RVers for more than 20 years.