By Ron Benvenisti. Truckers are advising what’s left of engine oil and diesel fuel will be gone within a month and then will be unavailable for 1 to 2 years.
“We are running out of engine oil and diesel exhaust fluid additives, the supply chain can come to a halt within a month.”
Meanwhile, President Biden is delivering desperately needed American oil to foreign nations, including… China.
Supply chain problems with U.S. railways, the distribution of diesel, gasoline, and especially a diesel additive, mandated by regulations, that limits emissions from highway trucks, could decline and cause prices for fuel to rise more than they have, and lead to shortages and higher prices for many consumer products delivered by 18-wheelers nationwide. According to market research, there are only five manufacturers of the DEF additive worldwide: BASF SE, CF Industries Holdings, Cummins Filtration, Nissan Chemical Industries, and The McPherson Companies.
With all the current consumer product shortages already impacted by the supply chain problems, this has the potential to bring consumer goods, such as food and other necessities to close to or even non-existent.
Despite all this, Biden has already ended oil and gas leases, closed pipelines and barred the expansion of refining. The SPR is releasing about a million gallons into the American economy every day while shipping five million barrels overseas.
The U.S. government, specifically the U.S. Department of Energy owns the Strategic Petroleum Reserve (SPR), whose sole purpose is to store approximately 700 million barrels of oil in case of an emergency or disruption.
Despite this urgent need, the US Strategic Petroleum Reserve (SPR) is releasing about a million barrels per day after reaching its lowest level since 1986 in May. The SPR is now being depleted with the price of gasoline and diesel in one-fifth of the nation now over $5 per gallon. In a bear market, the price of U.S. crude futures has been climbing above $100 per barrel. Oil prices might have increased anyway if the SPR wasn’t being used, according to government officials.
The fourth-largest American oil refiner, Phillips 66, shipped about 470,000 barrels of sour crude from Texas’ Big Hill SPR storage facility to Trieste, Italy, according to U.S. Customs data. Trieste is home to a pipeline that carries oil to refineries in central Europe.
The information revealed that Atlantic Trading & Marketing (ATMI), a subsidiary of the French oil giant TotalEnergies, exported two cargos totaling 560,000 barrels each.
Cargoes of SPR crude were also being shipped to the Netherlands as well as an Indian Reliance company refinery. There are claims that a third shipment was going to China.
The most recent exports come after three ships helped replace Russian crude supplies by transporting SPR crude to Europe in April when Russia shut down supply lines due to the war in the Ukraine.
With the government’s regulation of natural resources, and refineries still operating at close to capacity, U.S. crude inventories are at their lowest level since 2004 when U.S. Gulf coast refineries were operating at a 97.9 percent capacity.
According to available data and sources, more than 5 million barrels of oil from U.S. emergency reserves which lowered domestic fuel prices are now being exported to Europe and Asia, despite record-high prices for gasoline and diesel in the country. Joe Biden’s efforts to lower the record high pump prices is being hampered by the export of crude and fuel. On Saturday, Biden reiterated his call for fuel suppliers to lower their prices, ostensibly because of profits being made by the oil producers.
Because of supply chain problems with U.S. railways, the distribution of diesel, gasoline, and especially a diesel additive that limits emissions from highway trucks, could decline and cause prices for fuel to rise more than they have, and lead to shortages and higher prices for many consumer products delivered by 18-wheelers nationwide, said Pilot Flying J, a large operator of truck stops in th US, CEO Shameek Konar in testimony before the Surface Transportation Board. “The current situation is untenable,” said Konar in his Apr. 27 testimony, which was largely ignored by the liberal media. Under the worst-case scenario, he added, it “would be an absolute catastrophe,” and “equal to removing 10% of the trucks from the road today.”
Diesel engines manufactured after January 1, 2010, are required to meet lowered NOx standards for the US market. Vehicles affected are Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), including Trucks of all sizes, Construction Equipment, Buses, Law Enforcement and First Responder Vehicles such as Ambulances.
- Passenger Cars
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs), including Trucks of all sizes
- Construction Equipment
- Law Enforcement and First Responder Vehicles such as Ambulances.
The increasing fleet of heavy-duty vehicles are driving the demand and the supply is diminishing at lightning speed.
North America holds the largest market share. The standardization of diesel exhaust fluid tanks in buses manufactured in countries such as the US, increasing demand for commercial vehicles, both, LCVs and HCVs, and ongoing projects will expand the market in the North American region, if, according to the truckers, there is one left. Which seems unlikely at this time.
While refusing to even look at US fuel production which brought prices down to record levels during the prior administration, Mr. Biden and his “allies” have even banned Russian oil to ostensibly irk Vladimir Putin soon after he launched the invasion of Ukraine. Despite the US sanctions, Russia’s revenues from oil sales have been on the rise causing soaring fuel prices around the world.