Trey Paul, FISM News
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There is growing concern that the country’s economy could be in bigger trouble than expected now that diesel supply is low and the price of gas is skyrocketing once again.
The supply issue is so concerning that a diesel fuel shortage alert was issued Friday by a major company that tracks the availability of fuel.
Officials with Mansfield Energy noted “rapidly devolving” conditions with “extremely high prices in the Northeast along with supply outages along the Southeast.” Maryland, Virginia, Alabama, Georgia, Tennessee, and both Carolinas are expected to feel serious effects of the shortage.
“At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” the alert said.
Mansfield Energy officials speculated that the shortage could be generated by “poor pipeline shipping economies” and a historically low supply of diesel reserves.
“Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” they said. “These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.”
Officials with the U.S. Energy Information Administration (EIA) reported that the retail diesel price for the third quarter average was $5.16 per gallon and analysts are estimating that those costs will increase up to 20 cents per gallon in the next few weeks.
Mike Steehoeke, the executive director of the Soy Transportation Coalition, also issued an alert of sorts regarding the nation’s diesel shortage.
“This is not only constricting the ability of farmers to export the soybeans and grain they grow but also to receive the fuel and fertilizer they need to operate,” he said in a recent CNBC report.
“Now adding insult to injury is the increased uncertainty that railroads will be able to provide an effective lifeline during this critical time. It’s a vivid reminder that it is not enough to produce a crop or have demand for that crop. Having a reliable supply chain that connects supply with demand is also essential for farmers to be successful,” Steenhoek said.
EIA officials also reported that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, a low not seen since 2008.
This is prompting House Republicans, including Arizona Congressman Andy Biggs to point the finger at President Joe Biden, who has depleted the nation’s oil reserves in recent months.
Congressman Biggs tweeted: “Biden’s assault on fossil fuels now leaves us with just 25 days of diesel supply. This crucial fuel is used for transporting goods, farming, and military vehicles. He is putting America Last and bringing us back to the stone age.
Biden's assault on fossil fuels now leaves us with just 25 days of diesel supply.
This crucial fuel is used for transporting goods, farming, and military vehicles.
He is putting America Last and bringing us back to the stone age. https://t.co/Z0GwkqHg4Z
— Rep Andy Biggs (@RepAndyBiggsAZ) October 25, 2022
Congressman Pat Fallon of Texas shared similar concerns tweeting: “This Administration’s war on American energy is causing the worst diesel shortage we’ve seen in years. Without Diesel: Trucks don’t run; Farm equipment can’t plow; Construction won’t happen. Our economy shuts down.”
This Administration's war on American energy is causing the worst diesel shortage we've seen in years. Without Diesel:
– Trucks don't run;
– Farm equipment can't plow; and
– Construction won't happen.Our economy shuts down.
— Rep. Pat Fallon (@RepPatFallon) October 31, 2022
Congressman Fallon introduced a bill that would require an act of Congress to remove oil from the nation’s strategic reserves supply. He recently told Newsmax that President Joe Biden’s decision to use the supplies shows a “fundamental misunderstanding of how the economy works.”
“He’s never signed the front of one paycheck in all of his 174 years of life,” he said. “The Strategic Petroleum Reserve was established in 1975 to protect the United States in case of an act of God, a national emergency, and in time of war. It is not to be used for political expediency by any party two weeks before an election that they’re about to lose.”
Meanwhile, House Democrats are asking President Biden to release oil from the Northeast Home Heating Oil Reserve (NEHHOR) to help reduce home heating prices in the New England area.