It’s not gasoline that should worry us; it’s diesel

American Thinker ^ | 21 Oct, 2022 | Andrea Widburg

[MtnClimber]

America’s shelves are stocked and packages mailed because of truckers—and there’s an earthquake coming to the world of American diesel.

During COVID, trucking in America slowed, leaving many shelves empty. However, no matter the madness, there were enough truckers hitting the road for Americans to have food in their stomachs, gas in their cars, and clothes on their backs. However, in less than a month, it’s entirely possible that trucking will become too expensive for many truckers. Why? Because the real emergency isn’t rising fuel prices; it’s rising diesel prices.

This is a story that’s been on the periphery of my mind for several months now but, somehow, there was always something of more pressing importance (or, sometimes, purely amusing interest). However, when you learn that America theoretically has only 25 days of diesel left, you suddenly perk up and start taking an interest.

[snip]

According to the EIA, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied - a proxy for demand - rose to its highest seasonal level since 2007.

[Deaf Smith]

*eia.gov

Energy Information Administration

[texas booster]

Note the delta between gas prices and diesel prices from about a year ago:

I do not suspect that these meme makers did any kind of photoshopping, but it looks like diesel was usually cheaper than premium.

Not no mo.

[Blood of Tyrants]

Diesel has run about 30 cents more a gallon than regular unleaded, not $2 more. Until the feds forced the low sulfur diesel, it was the same cost as unleaded.

[bitt]

p

[Hootowl99]

Farming isn't blissfully throwing seeds on the ground.

Big $$$ are required for a commercial scale farm. It's high tech as well. There are farmers going out of business over the effects of price escalation. For diesel and natural gas, crop prices to the farmer have not kept up with expenses.

As far as diesel, you will see 1,000gal tanks or larger at a central location on the farm. This is typically for normal, low rate operations over year. During high volume use such as preparation for planting, planting and harvest, diesel tanker trucks from the local distributors are often running direct to the fields to fill up equipment while they are pulling 20 hour days in the fields.

Let's talk about chemicals and fertilizers. Herbicides, insecticides and fertilizers are an inseparable part of industrial farming. If the USA used organic farming only, we would need to cull our population by a couple of hundred million or so. All the chemicals above represent lots and lots of crude oil and natural gas.

My opinions…

[Nervous Tick]

>> As of March of 2022, we have been exporting 11.04 million b/d of diesel.

Yep, it’s going to the highest bidder.

In other words, if you think YOUR diesel is expensive...

[Deaf Smith]

The fallacy of the posted thread.

We do not technically have a shortage of diesel, just buyers who will pay more (with US subsidies) for what we produce.

Yes, the the US Gov subsidizes fuel exports.

[cableguymn]

519 to fill my rollback

We do it 2 or 3 times a week. Every Karen complains about the fuel surcharge and how I should get a ev truck..

The only EV truck that fits the bill has a 125 mile range

I towed her and her useless jaguar to the jag dealer 110 miles away.

I highly doubt that ev truck would have made it.

[cableguymn]

Price of what he’s growing doesn’t justify it

[Lazamataz]

We are so screwed.

[linMcHlp]

Your observations and opinion are correct. Thank you.

[usconservative]

Diesel is running $5/gal locally and had gone up about a dollar a gallon in the past 10 days.

Diesel has remained $5.29 - $5.49 per gallon here in Northern IL and hasn't dropped a penny. Not one single cent.

[ro_dreaming]

Rail (diesel?) gets about 10-20% of the stuff moved across the country.

Trucking (18 wheelers, tractor trailers, etc.) - give us at least 60% of our goods and services.

[Revel]

Nor can they deliver diesel without diesel. Heating oil is a real problem too. A lot of people may freeze this winter. Even if heating fuel is available many will not be able to afford it.

[Therapsid]

The military uses diesel leaving in their motorcycles this is just more psych the gasoline can be turned off a lot easier than diesel the diisel is a point of contention regarding social control

[dennisw]

Is diesel fuel cheaper to make than gasoline?

Is Diesel Fuel Cheaper To Make Than Gasoline? It’s easier to refine diesel fuel from crude oil because it’s less volatile than gasoline. Diesel is cheaper than gasoline in a lot of countries. Why is diesel fuel more expensive than gasoline? Diesel fuel production and distribution costs were affected by the transition to cleaner diesel fuels.
Is Diesel Fuel Cheaper To Make Than Gasoline? - LegalProX

legalprox.com/is-diesel-fuel-cheaper-to-make-than-gasolin…

[philman_36]

It will require the dear leader out of office before we see any improvement.

Vetoes for you, vetoes for you...vetoes for everyone.

[Hootowl99]

Thank you…. My background growing up was ranching and not farming. None the less, I have tried to absorb information about the other side of the fence. Lol…

I don't foresee any paths for my future generations to get into ranching or farming. It's largely an inheritance thing now to get a hook into the profession or lifestyle. A college degree in agriculture is pretty much mandatory and a second in finance doesn't hurt.

I wanted to continue with the family ranch when my grandfather past away when I was 17yo. I ran the ranch for 6 months (with the timely help of a neighbor over the winter) then was deemed too young by the direct inheritors. The ranch was put up for lease and a few years later sold. 1000acres. I'm a retired engineer now.

Ranching in the family started in the 1700s in northern New Mexico, 1800s in north Texas and 1900s in south Oklahoma.

[P.O.E.]

Heating oil is a real problem too

Just checked my local distributor - $5.679/gal

I switched to natgas several years ago, but the worst price I remember was around $3.50/gal

btw - looks like it jumped close to $1/gal in the last week or so. Probably hasn't hit most people's pocketbooks yet, since deliveries are at least monthly I imagine (depends on weather, tank size, etc.)

[MtnClimber]

The diesel cost adds to the expenses side of the balance sheet. With low profit margins the added expense can flip the accounting estimates from expected profit to break even or loss. If your best-case expectation is to break even, then why plant.