After reporting several months ago that we were facing a diesel shortage – and then watching pretty much nothing happening……I was starting to second guess my sources. Then Tucker took up the cry and others. At this point a shortage – in some geographic areas is already happening. While it seems that supplies might not run out completely – it looks like there is a problem that could cause some serious, if (hopefully) temporary shortages. As best as we can put together somewhat contradictory narratives here is the situation at present.
The Energy Information Administration announced that based on data from October 21st, the US had just 25 days of diesel in reserve. It turns out stockpiles were being drained – but supplies were dwindling.- About the same time, Mansfield Energy, a major supplier of diesel put out a warning, alerting customers about the low supplies.[i] Their statement read in part: “Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast. These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.”[ii]
- On November 2, it was reported that the Governors of Nebraska and South Dakota had issued emergency declarations to address the shortages. South Dakota Governor Kristi Noem suspended “Hours of Service” rules for operators due to “extremely low inventories and outages of certain liquid products including gasoline, diesel, jet fuel, propane, ethyl alcohol, natural gasoline, diesel exhaust fluid, and and anhydrous ammonia.”[iii]
- By November 6, Truckers were reporting that no diesel fuel was available in parts of North Carolina, Oklahoma and Tennessee. “Truckers in North Carolina are reporting large, 50 mile areas of that state, without diesel fuel…. Fuel Distributors in Tennessee announced they had begun LIMITING purchases of diesel fuel in that state.[iv]
Reports from various sources say that we will not run out. There does exist reduced production capacity that is driving prices higher. These in turn will drive up the cost of food and consumer goods as everything moves by diesel. One analyst warns “incredible impacts to inflation in the form of freight costs and surcharges.”
[i] Fuel Company Issues Diesel Shortage Warning, Epoch Times, October 25, 2022
[ii] Susan Duclos, Fighting Over Food Rations, ANP, November 7, 2022
[iii] Fuel supply emergency declarations issued in Nebraska and South Dakota, CDL Life, November 2, 2022
[iv] Truckers Reporting NO DIESEL FUEL, Hal Turner Radio, November 6, 2022
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