Americans brace yourselves for impacts! This will surely hit hard, all thanks to Biden’s regime. Again. As usual. Nothing’s new.
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.”
A diesel fuel crisis will surely cripple the US.
How will the Biden administration fix this mess? Well, we don’t know yet but surely they don’t know either.
More details of this diesel fuel crisis from PJ Media via Bloomberg exclusive report:
Oil prices and President Joe Biden’s continued draining of the Strategic Petroleum Reserve (SPR) have dominated the headlines over the past few weeks, but analysts say a more impactful and serious crisis on the energy front looms: a diesel fuel shortage.
Diesel doesn’t get as much of the limelight as oil and gas, but it should because diesel fuel is the industrial lifeblood of the United States, and the price of diesel alone probably has a more significant impact on inflation and the prices you’re paying at the grocery store over any other factor. Without ample amounts of diesel, semi-trucks don’t move, farms are shut down, and critical manufacturing sectors are crippled.
As Bloomberg noted this week, “The US has just 25 days of diesel supply, the lowest since 2008, according to the Energy Information Administration. At the same time, the four-week rolling average of distillates supplied, a proxy for demand, rose to its highest seasonal level since 2007.”
The Biden administration has remained strangely silent, probably hoping that the dismal news doesn’t hit the mainstream because it’s a total political timebomb waiting to go off, especially as the midterm elections are so close.
The diesel crunch comes just weeks ahead of the midterm elections and has the potential to drive up prices for consumers who already view inflation and the economy as a top voting issue. Retail prices have been steadily climbing for more than two weeks. At $5.324 a gallon, they’re 50% higher than this time last year, according to AAA data.
Notably, National Economic Council Director Brian Deese recently commented on the emerging crisis. Deese said diesel inventories are “unacceptably low” and added that “all options are on the table,” whatever that means.
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.
Taking from @JavierBlas: “US has just 106 million barrels of diesel stockpiles. Last time inventories were that low in mid-October was in 1951. Inventories should be 30% higher this time of the year.” Fed have another wave of energy-led inflation coming? https://t.co/HURQmUg2oH pic.twitter.com/vKMmCheowA
— Valerie Tytel (@ValerieTytel) October 19, 2022
The US Energy Information Administration (EIA) said in their report that diesel fuel is used to transport goods and run military vehicles and tractors of farms:
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. 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.
In 2021, distillate fuel consumption by the U.S. transportation sector, which is essentially diesel fuel, was about 46.82 billion gallons (1.11 billion barrels), an average of about 128 million gallons per day. This amount accounted for about 77% of total U.S. distillate consumption, about 15% of total U.S. petroleum consumption, and on an energy content basis, about 25% of total energy consumption by the U.S. transportation sector.
Diesel fuel is used for many tasks
Diesel engines in trucks, trains, boats, and barges help transport nearly all products people consume. Diesel fuel is commonly used in public buses and school buses.
Diesel fuel powers most of the farm and construction equipment in the United States. The construction industry also depends on the power diesel fuel provides. Diesel engines can do demanding construction work, such as lifting steel beams, digging foundations and trenches, drilling wells, paving roads, and moving soil safely and efficiently.
The U.S. military uses diesel fuel in tanks and trucks because diesel fuel is less flammable and less explosive than other fuels. Diesel engines are also less likely to stall than gasoline-fueled engines.
Diesel fuel is also used in diesel engine generators to generate electricity. Many industrial facilities, large buildings, institutional facilities, hospitals, and electric utilities have diesel generators for backup and emergency power supply. Most remote villages in Alaska use diesel generators as the primary source of electricity.
Our friends from TGP commented further:
The Biden regime, with its holdovers from the Clinton and Obama regimes, has put the American economy in a dangerous position. The anti-energy policies they push, that help regimes in the Middle East, Russia and Venezuela, are killing the US.
President Trump had America energy independent in less than four years. Biden is now begging for oil from these America-hating radical regimes.
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.