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VIDEO: Saagar Enjeti: Diesel Crisis Will Increase Price Of EVERYTHING May 10, 2022 Breaking Points
Saagar takes an in depth look at the diesel fuel crisis happening right now that has been ignored and how it will increases prices of everything even more
https://www.youtube.com/watch?v=a6wPWblymng
Direct Headline: Why Diesel-Fuel Costs Are Really Rising
As of this morning, the national average cost of a gallon of diesel fuel is $5.57 — which is the record high.... A year ago, it was $3.17 per gallon. (The national average cost of a gallon of regular gasoline this morning is $4.52; one year ago, the cost was $3.04.).....We are now reaching the point where the cost of diesel fuel is making some goods too expensive to transport. One trucker ....“The cost of diesel is single-handedly taking us out of the game one by one no matter how big you are. . . . If you’re getting paid $2 per mile you’re not taking that load no matter if it is baby formula or orange juice because the cost of diesel is $5 plus. You just can’t take that load.....”
....Tractor-trailer trucks loaded up with goods are heavy.... average “only 6.5 miles per gallon. Their efficiency ranges wildly between 3 miles per gallon going up hills to more than 23 miles per gallon going downhill.” Because of the low fuel economy, trucks have massive gas tanks — from 120 to 150 gallons, and some trucks may have two tanks for longer hauls. In other words, on one full tank of diesel, a truck can travel 780 to 975 miles..... But as of this morning, filling up the tank for that trip will cost $668 to $836 — a cost of 85 cents per mile.....“A majority of trucking companies pay [drivers] between $0.28 and $0.40 cents per mile according to the U.S Bureau of Labor Statistics.....
...The cost of crude oil makes up 59 percent of the cost of gallon of regular gasoline, and just 49 percent of the cost of diesel. Refining is a slightly bigger share of the cost of a gallon of diesel fuel than for regular gasoline — 23 percent for diesel to 18 percent for regular....Distribution and marketing costs make up 18 percent of diesel costs....federal taxes on diesel are slightly higher than those on regular gasoline — 24 cents per gallon on diesel compared to 18 cents per gallon for regular....Another factor that can really drive up the cost of a gallon of diesel is the total state tax — which currently averages 55.8 cents per gallon across all 50 states.... Right now, in California, the total taxes on diesel amount to almost a dollar per gallon, which is one reason why the average price in California this morning is $6.56 per gallon when the national average is $5.57... State sales taxes aren’t the only reason states have significant differences in fuel costs, but they’re a big reason.
But if we really want to know why the cost of diesel is increasing faster than regular gasoline, we need to look at those refining costs. It doesn’t matter how much we “drill, baby, drill,” unless we also have the ability to “refine, baby, refine,” — or we become dependent upon foreign refiners.....Back in 2020, U.S. oil-refinery capacity peaked at 19 million barrels per day....because of the pandemic, and the delayed decision to permanently shut down Philadelphia Energy Solutions refinery after a major accident in 2019, U.S. refinery capacity declined significantly during that year. (It was the largest oil refinery on the East Coast and refined 335,000 barrels per day.)....
In addition to the PES refinery, five more shut down over the course of 2020: the Shell refinery in Convent, La., the Tesoro Marathon refinery in Martinez, Calif., the HollyFrontier refinery in Cheyenne, Wyo., the Western Refining refinery in Gallup, N.M., and the Dakota Prairie refinery in Dickinson, N.D. Those six collectively refined more than 1 million barrels of oil per day....Thus, the U.S. started 2021 with the lowest annual capacity in six years, and refinery capacity did not expand significantly during 2021. And as the pandemic’s effects on American life faded, month by month, demand for fuel increased — not just from drivers but from trucking and shipping companies, construction companies — remember, 98 percent of all energy use in the construction sector comes from diesel — and from airlines and other consumers of jet fuel.....With diesel so expensive, keep an eye on jet-fuel prices squeezing the airlines and prompting them to cancel insufficiently profitable routes.....
The former PES refinery complex in Philadelphia is being demolished. The Shell refinery is slated to become an “alternative fuels complex,” and it’s a similar transition for the Tesoro refinery. The HollyFrontier refinery is already converted to processing biofuels, as is the Dakota Prairie refinery. (Certain environmentalists will denounce the greedy oil companies and praise the companies producing environmentally friendly biofuels, never stopping to check and realize that many of them are the same companies.)...
Wait, I haven’t even gotten to the bad news: Chemical maker Lyondell Basell Industries announced in April that the company will permanently close its Houston crude-oil refinery by the end of 2023. That plant refines about 263,000 barrels of gasoline, diesel, and jet fuel per day.....We almost never build oil refineries in the U.S. anymore....the newest refinery in the United States is the Targa Resources Corporation’s site in Channelview, Texas, which began operating in 2019 and processes 35,000 barrels per day. Before that, the newest refinery with significant downstream unit capacity was Marathon’s facility in Garyville, La. That facility came online in 1977.....And right now, there are no major projects planned to build new oil refineries or expand capacity at the existing ones....In short.... the cultural zeitgeist made it clear to the oil industry that their product did not have a future — and so oil companies reduced their investments at all stages of seeking out, drilling, obtaining, and refining their product.....
.... “The U.S. can’t make enough fuel and there’s no fix in sight.....The longer-term transition away from fossil fuels dims the outlook for demand, making companies unwilling to put up the billions of dollars needed to build new plants. Even resurrecting idled plants can be prohibitively costly at a time when construction and labor costs in the U.S. are booming.....”....There simply isn’t any quick, cheap, or easy way to expand refinery capacity, and the Biden administration and environmentalists don’t like oil refineries in general....
By Jim Geraghty May 17, 2022 10:21 AM
https://www.nationalreview.com/the-morning-jolt/why-diesel-fuel-costs-are-really-rising/
Direct Headline: How Trump Is Impacting the Diesel Industry
Here are some of the key changes that Trump’s administration is making to loosen regulations on the gas, oil, and diesel industry.
1. Permitting drilling in environmentally sensitive areas
Trump’s administration plans to open paths to oil drilling in some areas where the Obama administration had prevented drilling because of environmental concerns...This impact would not be felt in the short term. However, over the next five to seven years, this could significantly raise fuel production levels.
2. Getting rid of vehicle emissions standards
Trump has already started getting rid of the standards for vehicle carbon emissions....After meeting with leaders of Detroit’s auto industry, he has put steps into motion to cut back on Obama’s standards for fuel emissions.
3. Eliminating the Diesel Emission Reduction Act (DERA) program
The DERA currently funds replacing or upgrading diesel engines. However, with major cuts being made to the EPA’s budget, this is one of the programs that Trump is seeking to get rid of....This means more vehicles will stay on the road with diesel engines that otherwise would have been replaced. According to the EPA, 73,000 vehicles, including buses, trucks, and heavy motorized equipment have been retrofitted under this act....This is sure to impact the diesel industry with more vehicles consuming diesel staying on the road for years to come.....
4. Advancing oil pipelines
Trump has signed executive orders to advance the Dakota Access Pipeline and the Keystone XL Pipeline. This, again, has the potential to increase oil production in the long term, but won’t have much short-term impact.
5. Slowing vehicle innovation
With more access to conventional fuel sources, lowered emissions standards, and diesel-burning vehicles staying on the road longer, there will be less incentive to find new fuel sources or to create vehicles with greater efficiency....Instead, automakers will be able to use the same technology that’s already in place to make new vehicles, which can more easily meet the relaxed standards under the Trump administration....
6. Increasing power of the Diesel industry
Under Trump, the fuel and gas industry has more sway in the White House. Fossil fuels are back in the spotlight....The Trump administration is likely to work closely with oil and gas companies for the foreseeable future, as the administration and the industry have similar goals. The fuel industry stands to benefit from Trump’s rolling back of the stricter Obama regulations on drilling and emissions....
Most of these changes will have long-term impacts that can’t be fully measured yet. But we do know that fuel production is likely to increase due to opening up previously closed oil sources....
IMPC 2016-2020
https://www.impcorporation.com/blog/how-trump-is-impacting-the-diesel-industry-2
*******
This is a pretty complex topic.
Right now there is a current diesel fuel crisis on top of our regular gasoline crisis. However there are some ugly long term questions in play, as diesel is needed to transport critical necessary supplies and goods all over the country. People can argue about the push/pull of the diesel industry and it's impact on the environment, but if you want to go to a grocery store and find regular stocks of food there so you and your kids don't starve, you need diesel in America.
And there's the large scale problem of not enough American refineries to manage diesel fuel production. Which has a dovetail impact on jet fuel and our entire airline industry as well. These stacking problems with no short term practical solutions in sight have created an immediate national security threat to our entire Republic.
Under the Trump Administration, there was a hard push for energy independence and support for our diesel, oil, gas and trucking industries. And under Trump, American families weren't looking at a 5200 dollar inflationary increase from the previous year like with Biden. America's trucking, gas, oil and diesel industry could be argued to have had much more opportunity, flexibility and government backing with The Big Cheeto rather than under the Biden regime. Was there an election/reelection motive here? Sure, no doubt. But Trump is also on record brokering deals to help solve disputes with foreign players in the oil industry. Trump is a deal maker, he simply did not want America to be energy dependent on any other foreign power. Love or hate Trump, many Americans saw that as a good thing.
Under the Biden Administration, the collapse of our energy sector is just one of many scandals and failures and disasters under his watch. Now we have problems with oil and gas leases, tapping into our critical Strategic Oil Reserve, a hard push to drive forward electric vehicles without the infrastructure in place to support it nor enough financial stability of most everyday working class Americans to afford one, and spending tax dollars on "environmental justice" instead of solving the diesel fuel crisis and simply blaming anyone and everyone for failing to have an practical overall plan to help American transition out of fossil fuels into something better for the environment and that is more long term sustainable. Point to note, former Team Green Hero, Elon Musk, has also been targeted and dragged through the mud because he wants to point out the utter level of catastrophe that the Biden Administration has inflicted on all Americans. Biden says he wants America to have successful and practical energy policy, but where are the logistics? Where are the short term and long term ranged plans? Where is the practical discussion of scaling and ramping in with a real transition instead of these haphazard mindless aimless type energy policies?
Did Trump do energy policy better than Biden? Why or why not?
If Trump was still in office today, if he had won 2024 POTUS, where do you think our current energy/gas/oil/diesel fuel situation would be right now?
What should America do about the current diesel fuel crisis? Again, there are massive national security issues implied here, this is a threat point to all Americans and there appears to be few to no solutions in sight with this current administration.
I'll leave this here for others to discuss.
Changed Title From:
Deadly Diesel Fuel Crisis: Did Trump Do Energy Policy Better Than Biden? (5/20/22 19:50PST)
To:
Diesel/Jet Fuel Crisis: Buttigieg Goes Full Tywin Lannister On Airline Industry (5/20/22 19:50PST)
EDIT: 6/20/22 17:12 PST
To:
Diesel Crisis: Farmers/America's Food Supply Under Threat With No Solution In Sight
EDIT: 7/20/22 16:14 PST
Saagar takes an in depth look at the diesel fuel crisis happening right now that has been ignored and how it will increases prices of everything even more
https://www.youtube.com/watch?v=a6wPWblymng
Direct Headline: Why Diesel-Fuel Costs Are Really Rising
As of this morning, the national average cost of a gallon of diesel fuel is $5.57 — which is the record high.... A year ago, it was $3.17 per gallon. (The national average cost of a gallon of regular gasoline this morning is $4.52; one year ago, the cost was $3.04.).....We are now reaching the point where the cost of diesel fuel is making some goods too expensive to transport. One trucker ....“The cost of diesel is single-handedly taking us out of the game one by one no matter how big you are. . . . If you’re getting paid $2 per mile you’re not taking that load no matter if it is baby formula or orange juice because the cost of diesel is $5 plus. You just can’t take that load.....”
....Tractor-trailer trucks loaded up with goods are heavy.... average “only 6.5 miles per gallon. Their efficiency ranges wildly between 3 miles per gallon going up hills to more than 23 miles per gallon going downhill.” Because of the low fuel economy, trucks have massive gas tanks — from 120 to 150 gallons, and some trucks may have two tanks for longer hauls. In other words, on one full tank of diesel, a truck can travel 780 to 975 miles..... But as of this morning, filling up the tank for that trip will cost $668 to $836 — a cost of 85 cents per mile.....“A majority of trucking companies pay [drivers] between $0.28 and $0.40 cents per mile according to the U.S Bureau of Labor Statistics.....
...The cost of crude oil makes up 59 percent of the cost of gallon of regular gasoline, and just 49 percent of the cost of diesel. Refining is a slightly bigger share of the cost of a gallon of diesel fuel than for regular gasoline — 23 percent for diesel to 18 percent for regular....Distribution and marketing costs make up 18 percent of diesel costs....federal taxes on diesel are slightly higher than those on regular gasoline — 24 cents per gallon on diesel compared to 18 cents per gallon for regular....Another factor that can really drive up the cost of a gallon of diesel is the total state tax — which currently averages 55.8 cents per gallon across all 50 states.... Right now, in California, the total taxes on diesel amount to almost a dollar per gallon, which is one reason why the average price in California this morning is $6.56 per gallon when the national average is $5.57... State sales taxes aren’t the only reason states have significant differences in fuel costs, but they’re a big reason.
But if we really want to know why the cost of diesel is increasing faster than regular gasoline, we need to look at those refining costs. It doesn’t matter how much we “drill, baby, drill,” unless we also have the ability to “refine, baby, refine,” — or we become dependent upon foreign refiners.....Back in 2020, U.S. oil-refinery capacity peaked at 19 million barrels per day....because of the pandemic, and the delayed decision to permanently shut down Philadelphia Energy Solutions refinery after a major accident in 2019, U.S. refinery capacity declined significantly during that year. (It was the largest oil refinery on the East Coast and refined 335,000 barrels per day.)....
In addition to the PES refinery, five more shut down over the course of 2020: the Shell refinery in Convent, La., the Tesoro Marathon refinery in Martinez, Calif., the HollyFrontier refinery in Cheyenne, Wyo., the Western Refining refinery in Gallup, N.M., and the Dakota Prairie refinery in Dickinson, N.D. Those six collectively refined more than 1 million barrels of oil per day....Thus, the U.S. started 2021 with the lowest annual capacity in six years, and refinery capacity did not expand significantly during 2021. And as the pandemic’s effects on American life faded, month by month, demand for fuel increased — not just from drivers but from trucking and shipping companies, construction companies — remember, 98 percent of all energy use in the construction sector comes from diesel — and from airlines and other consumers of jet fuel.....With diesel so expensive, keep an eye on jet-fuel prices squeezing the airlines and prompting them to cancel insufficiently profitable routes.....
The former PES refinery complex in Philadelphia is being demolished. The Shell refinery is slated to become an “alternative fuels complex,” and it’s a similar transition for the Tesoro refinery. The HollyFrontier refinery is already converted to processing biofuels, as is the Dakota Prairie refinery. (Certain environmentalists will denounce the greedy oil companies and praise the companies producing environmentally friendly biofuels, never stopping to check and realize that many of them are the same companies.)...
Wait, I haven’t even gotten to the bad news: Chemical maker Lyondell Basell Industries announced in April that the company will permanently close its Houston crude-oil refinery by the end of 2023. That plant refines about 263,000 barrels of gasoline, diesel, and jet fuel per day.....We almost never build oil refineries in the U.S. anymore....the newest refinery in the United States is the Targa Resources Corporation’s site in Channelview, Texas, which began operating in 2019 and processes 35,000 barrels per day. Before that, the newest refinery with significant downstream unit capacity was Marathon’s facility in Garyville, La. That facility came online in 1977.....And right now, there are no major projects planned to build new oil refineries or expand capacity at the existing ones....In short.... the cultural zeitgeist made it clear to the oil industry that their product did not have a future — and so oil companies reduced their investments at all stages of seeking out, drilling, obtaining, and refining their product.....
.... “The U.S. can’t make enough fuel and there’s no fix in sight.....The longer-term transition away from fossil fuels dims the outlook for demand, making companies unwilling to put up the billions of dollars needed to build new plants. Even resurrecting idled plants can be prohibitively costly at a time when construction and labor costs in the U.S. are booming.....”....There simply isn’t any quick, cheap, or easy way to expand refinery capacity, and the Biden administration and environmentalists don’t like oil refineries in general....
By Jim Geraghty May 17, 2022 10:21 AM
https://www.nationalreview.com/the-morning-jolt/why-diesel-fuel-costs-are-really-rising/
Direct Headline: How Trump Is Impacting the Diesel Industry
Here are some of the key changes that Trump’s administration is making to loosen regulations on the gas, oil, and diesel industry.
1. Permitting drilling in environmentally sensitive areas
Trump’s administration plans to open paths to oil drilling in some areas where the Obama administration had prevented drilling because of environmental concerns...This impact would not be felt in the short term. However, over the next five to seven years, this could significantly raise fuel production levels.
2. Getting rid of vehicle emissions standards
Trump has already started getting rid of the standards for vehicle carbon emissions....After meeting with leaders of Detroit’s auto industry, he has put steps into motion to cut back on Obama’s standards for fuel emissions.
3. Eliminating the Diesel Emission Reduction Act (DERA) program
The DERA currently funds replacing or upgrading diesel engines. However, with major cuts being made to the EPA’s budget, this is one of the programs that Trump is seeking to get rid of....This means more vehicles will stay on the road with diesel engines that otherwise would have been replaced. According to the EPA, 73,000 vehicles, including buses, trucks, and heavy motorized equipment have been retrofitted under this act....This is sure to impact the diesel industry with more vehicles consuming diesel staying on the road for years to come.....
4. Advancing oil pipelines
Trump has signed executive orders to advance the Dakota Access Pipeline and the Keystone XL Pipeline. This, again, has the potential to increase oil production in the long term, but won’t have much short-term impact.
5. Slowing vehicle innovation
With more access to conventional fuel sources, lowered emissions standards, and diesel-burning vehicles staying on the road longer, there will be less incentive to find new fuel sources or to create vehicles with greater efficiency....Instead, automakers will be able to use the same technology that’s already in place to make new vehicles, which can more easily meet the relaxed standards under the Trump administration....
6. Increasing power of the Diesel industry
Under Trump, the fuel and gas industry has more sway in the White House. Fossil fuels are back in the spotlight....The Trump administration is likely to work closely with oil and gas companies for the foreseeable future, as the administration and the industry have similar goals. The fuel industry stands to benefit from Trump’s rolling back of the stricter Obama regulations on drilling and emissions....
Most of these changes will have long-term impacts that can’t be fully measured yet. But we do know that fuel production is likely to increase due to opening up previously closed oil sources....
IMPC 2016-2020
https://www.impcorporation.com/blog/how-trump-is-impacting-the-diesel-industry-2
*******
This is a pretty complex topic.
Right now there is a current diesel fuel crisis on top of our regular gasoline crisis. However there are some ugly long term questions in play, as diesel is needed to transport critical necessary supplies and goods all over the country. People can argue about the push/pull of the diesel industry and it's impact on the environment, but if you want to go to a grocery store and find regular stocks of food there so you and your kids don't starve, you need diesel in America.
And there's the large scale problem of not enough American refineries to manage diesel fuel production. Which has a dovetail impact on jet fuel and our entire airline industry as well. These stacking problems with no short term practical solutions in sight have created an immediate national security threat to our entire Republic.
Under the Trump Administration, there was a hard push for energy independence and support for our diesel, oil, gas and trucking industries. And under Trump, American families weren't looking at a 5200 dollar inflationary increase from the previous year like with Biden. America's trucking, gas, oil and diesel industry could be argued to have had much more opportunity, flexibility and government backing with The Big Cheeto rather than under the Biden regime. Was there an election/reelection motive here? Sure, no doubt. But Trump is also on record brokering deals to help solve disputes with foreign players in the oil industry. Trump is a deal maker, he simply did not want America to be energy dependent on any other foreign power. Love or hate Trump, many Americans saw that as a good thing.
Under the Biden Administration, the collapse of our energy sector is just one of many scandals and failures and disasters under his watch. Now we have problems with oil and gas leases, tapping into our critical Strategic Oil Reserve, a hard push to drive forward electric vehicles without the infrastructure in place to support it nor enough financial stability of most everyday working class Americans to afford one, and spending tax dollars on "environmental justice" instead of solving the diesel fuel crisis and simply blaming anyone and everyone for failing to have an practical overall plan to help American transition out of fossil fuels into something better for the environment and that is more long term sustainable. Point to note, former Team Green Hero, Elon Musk, has also been targeted and dragged through the mud because he wants to point out the utter level of catastrophe that the Biden Administration has inflicted on all Americans. Biden says he wants America to have successful and practical energy policy, but where are the logistics? Where are the short term and long term ranged plans? Where is the practical discussion of scaling and ramping in with a real transition instead of these haphazard mindless aimless type energy policies?
Did Trump do energy policy better than Biden? Why or why not?
If Trump was still in office today, if he had won 2024 POTUS, where do you think our current energy/gas/oil/diesel fuel situation would be right now?
What should America do about the current diesel fuel crisis? Again, there are massive national security issues implied here, this is a threat point to all Americans and there appears to be few to no solutions in sight with this current administration.
I'll leave this here for others to discuss.
Changed Title From:
Deadly Diesel Fuel Crisis: Did Trump Do Energy Policy Better Than Biden? (5/20/22 19:50PST)
To:
Diesel/Jet Fuel Crisis: Buttigieg Goes Full Tywin Lannister On Airline Industry (5/20/22 19:50PST)
EDIT: 6/20/22 17:12 PST
To:
Diesel Crisis: Farmers/America's Food Supply Under Threat With No Solution In Sight
EDIT: 7/20/22 16:14 PST
Last edited by a moderator:
for future reading. Good thread, good topic.
