Are refineries no longer producing diesel fuel?
The 25 day supply report, which is now 5 days old, would mean that in 20 days the US will run out of diesel fuel,
IF THE REFINERIES ARE NO LONGER PRODUCING DIESEL FUEL.
The issue is if the gozzinto is greater than the gozzoutta. If the gozzinto the diesel supply is greater than the gozzoutta diesel supply, then the supply is growing. If the reverse is the case, then the supply is shrinking.
I went Harvard Business screwal to learn the Econ basics.
Perhaps the draw down is from people filling their diesel tanks for winter. Many people heat their homes with diesel fired heaters and they have a large diesel tank outside the house which is usually 200-300 gallons.
We were given a tutorial at work last night about how to shut the pumps off if the tanks if the levels dropped too low. It wasn't part of initial training.
The United States is down to 25 days of diesel supply as a top White House official declared the stockpile levels to be “unacceptably low.”
Data provided by the Energy Information Administration (EIA) show that diesel stockpiles are at their lowest level for October in records that date back to 1993, according to a Bloomberg News analysis. EIA data show that the United States, as of Oct. 14, has 25.4 days of supply—down from 34.2 days of supply four weeks prior.
National Economic Council Director Brian Deese, a top adviser to President Joe Biden, told Bloomberg News last week that current diesel levels are “unacceptably” low and that “all options are on the table” to increase supplies.
The diesel crunch comes just over two weeks before the November 2022 midterm elections and will likely drive up prices even more. Diesel is the fuel used by freight trains and commonly used by long-haul truckers to transport goods and food.
“Most of the products we use are transported by trucks and trains with diesel engines, and most construction, farming, and military vehicles and equipment also have diesel engines,” the EIA’s website states. “As a transportation fuel, diesel fuel offers a wide range of performance, efficiency, and safety features. Diesel fuel also has a greater energy density than other liquid fuels, so it provides more useful energy per unit of volume.”
Prices, meanwhile, remain relatively elevated, according to AAA data. The average price for a gallon of diesel stands at around $5.33 nationwide, or up nearly $2 since the same time in 2021, the data shows.
Wholesale diesel prices at the New York spot market spiked last week to more than $200 per barrel.
It comes as the Biden administration recently announced it would release another 15 million barrels of oil from the U.S. Strategic Petroleum Reserve, part of the 180 million Biden authorized in March, that Republicans say is a bid to keep Democrats politically afloat ahead of the midterms. But Biden and his allies say that it’s not a political tactic, and the administration says it will refill the reserve when prices drop to $67–$72 per barrel.
“The United States government is going to purchase oil to refill the Strategic Petroleum Reserve when prices fall to $70 a barrel,” Biden said on Oct. 19. “And that means oil companies can invest to ramp up production now, with confidence they’ll be able to sell their oil to us at that price in the future: $70.”
The move came after the International Organization of the Petroleum Exporting Countries Plus (OPEC+) announced that it would cut oil production.
“Now, after draining our emergency reserves to a 40-year low, Democrats want billions more of taxpayer dollars to refill the [Strategic Petroleum Reserve] at more than double the price,” Sen. John Barrasso (R-Wyo.) told the New York Post last week. “This is a direct attack on every single American struggling to fill their tanks and heat their homes.”
Normally the bulk of Russia's diesel exports went to Europe, but at the outbreak of the Russia-Ukraine war Europe started boycotting Russian energy products and the Russians simply sent most of their output to Asia while maintaining production. At about the same time the US started exporting diesel to Europe causing prices here to skyrocket and supplies to drop.
Folks in the northeast are filling their heating oil tanks for the winter and diesel and heating oil are basically the same thing. Diesel shortage = heating oil shortage.
Are refineries no longer producing diesel fuel? The 25 day supply report, which is now 5 days old, would mean that in 20 days the US will run out of diesel fuel, IF THE REFINERIES ARE NO LONGER PRODUCING DIESEL FUEL.
The issue is if the gozzinto is greater than the gozzoutta. If the gozzinto the diesel supply is greater than the gozzoutta diesel supply, then the supply is growing. If the reverse is the case, then the supply is shrinking.
I went Harvard Business screwal to learn the Econ basics.
Not certain but EIA data show that the United States, as of Oct. 14, has 25.4 days of supply—down from 34.2 days of supply four weeks prior.
Perhaps the draw down is from people filling their diesel tanks for winter. Many people heat their homes with diesel fired heaters and they have a large diesel tank outside the house which is usually 200-300 gallons.
It’s a rolling average of the storage levels. While it’s a low number, it not consequential unless there is a significant disruption to production.
We were given a tutorial at work last night about how to shut the pumps off if the tanks if the levels dropped too low. It wasn't part of initial training.
The United States is down to 25 days of diesel supply as a top White House official declared the stockpile levels to be “unacceptably low.”
Data provided by the Energy Information Administration (EIA) show that diesel stockpiles are at their lowest level for October in records that date back to 1993, according to a Bloomberg News analysis. EIA data show that the United States, as of Oct. 14, has 25.4 days of supply—down from 34.2 days of supply four weeks prior.
National Economic Council Director Brian Deese, a top adviser to President Joe Biden, told Bloomberg News last week that current diesel levels are “unacceptably” low and that “all options are on the table” to increase supplies.
The diesel crunch comes just over two weeks before the November 2022 midterm elections and will likely drive up prices even more. Diesel is the fuel used by freight trains and commonly used by long-haul truckers to transport goods and food.
“Most of the products we use are transported by trucks and trains with diesel engines, and most construction, farming, and military vehicles and equipment also have diesel engines,” the EIA’s website states. “As a transportation fuel, diesel fuel offers a wide range of performance, efficiency, and safety features. Diesel fuel also has a greater energy density than other liquid fuels, so it provides more useful energy per unit of volume.”
Prices, meanwhile, remain relatively elevated, according to AAA data. The average price for a gallon of diesel stands at around $5.33 nationwide, or up nearly $2 since the same time in 2021, the data shows.
Wholesale diesel prices at the New York spot market spiked last week to more than $200 per barrel.
It comes as the Biden administration recently announced it would release another 15 million barrels of oil from the U.S. Strategic Petroleum Reserve, part of the 180 million Biden authorized in March, that Republicans say is a bid to keep Democrats politically afloat ahead of the midterms. But Biden and his allies say that it’s not a political tactic, and the administration says it will refill the reserve when prices drop to $67–$72 per barrel.
“The United States government is going to purchase oil to refill the Strategic Petroleum Reserve when prices fall to $70 a barrel,” Biden said on Oct. 19. “And that means oil companies can invest to ramp up production now, with confidence they’ll be able to sell their oil to us at that price in the future: $70.”
The move came after the International Organization of the Petroleum Exporting Countries Plus (OPEC+) announced that it would cut oil production.
“Now, after draining our emergency reserves to a 40-year low, Democrats want billions more of taxpayer dollars to refill the [Strategic Petroleum Reserve] at more than double the price,” Sen. John Barrasso (R-Wyo.) told the New York Post last week. “This is a direct attack on every single American struggling to fill their tanks and heat their homes.”
Think back to port backlogs over last summer. It just dropped from the news. When driving 95N in August we saw MD and NJ ports slow / barely busy.
Normally the bulk of Russia's diesel exports went to Europe, but at the outbreak of the Russia-Ukraine war Europe started boycotting Russian energy products and the Russians simply sent most of their output to Asia while maintaining production. At about the same time the US started exporting diesel to Europe causing prices here to skyrocket and supplies to drop.
Folks in the northeast are filling their heating oil tanks for the winter and diesel and heating oil are basically the same thing. Diesel shortage = heating oil shortage.
This news was making the round four or five days ago. I wonder if there's an update. It should be down to 20 or 21 days if nothing has been done.