Real Dangers of the Diesel Shortage

[TuFun 437]

The refineries situation and diverting oil shipments... jet fuel?

 

 

Edited November 4, 2022 by TuFun

[birdguy 3,943]

Another big user of diesel are the railroads.  He didn't mention those.  Hauling containers from ports to where the merchandise is needed is another big factor.  Not just trucks.

He mentioned the use of diesel to heat homes.  We use natural gas here, but I imagine the Northeast would be a big user in a cold winter.  Will diesel supplies be rationed or apportioned?

Looks pretty dismal doesn't it?  Since it's only in the consumer's interest to fix the problem why bother? 

Why does everything seem to be falling apart now?  What's changed in the past 5 - 10 - 20 years to start us on this road to where?

Noel

Edited November 4, 2022 by birdguy
To remove the window for political discussion

[cmpbellsjc 2,963]

This is a topic that can quickly turn into political discussion. If it does, it’s locked. 

[dave2013 1,130]

2 hours ago, birdguy said:

Why does everything seem to be falling apart now?  What's changed in the past 5 - 10 - 20 years to start us on this road to where?

Well, you probably know this, but it bears repeating:

Supply and Demand.  That's it.  Period.

Not enough supply, and too much demand.  I know the reason why this is happening, but can't say it here.

Let's hope that at least this problem, among many, gets fixed.

Dave

[FBW737 512]

We all know why these things are happening and we can't say it anywhere!

[DBH114 7]

It's not 25 days of diesel fuel left, it's 25 days of reserve left. If they stopped producing and importing diesel we'd only have a 25 day supply. But production and importation isn't stopping. Production has slowed because American refiners are enjoying the best-ever diesel margins, with the profit of turning a barrel of crude into one of diesel - i.e., the diesel crack spread - hitting a record high of $86.5 per barrel, up roughly 450% from the 2000-2020 average of $15.7 per barrel. Why boost production and lower the price when they are enjoying record profits. This is fearmongering in front of the election. The reserve got down to 26 days in 2019 and not a word was said since there wasn't an upcoming election.

[Mace 1,929]

1 hour ago, DBH114 said:

This is fearmongering in front of the election. 

Oops.  Bad DBH Bad!  Isn't this what @cmpbellsjc was warning about?

I know this, when I make lots o' money, I do MORE of what makes me money.  It's as the others say, I know, but I'm not allowed to say why these things are happening.

[fppilot 4,379]

I am flying mostly the Hjet and as a precaution I have this past week purchased $1.5 mil of guaranteed inflation and supply protected jet fuel credits for my next five years of flying.  That should cover about 1,750 flight hours, or 350 hours per year.  In the past 90 days I have logged 90 hours of Hjet time, so projecting that out I believe I mostly good!  Not so sure about my availability to avgas.... So my shorter flights in avgas models are perhaps in question...

Edited November 5, 2022 by fppilot

[cmpbellsjc 2,963]

1 hour ago, Mace said:

Oops.  Bad DBH Bad!  Isn't this what @cmpbellsjc was warning about?

I know this, when I make lots o' money, I do MORE of what makes me money.  It's as the others say, I know, but I'm not allowed to say why these things are happening.

Yeah I think we all have a good idea of what’s going and since this isn’t really the place to talk about it, since topics revolving around politics are not allowed, I’m going to go ahead and lock this now.