Back in March, I discussed heavy crude oil, its relationship to diesel, and the importance of diesel in modern industrial society. There is a great write up on OilPrice.Com about a widespread shortage of diesel at the current time.
From the article:
- Global diesel and distillate fuel stocks have fallen to dangerous levels.
- The U.S. has been exporting a lot of diesel to troubled Europe, but now things are changing.
- U.S. buyers are snapping up diesel cargos originally planned for Europe as the crisis deepens.
Additionally, the US Strategic Petroleum Reserve is being drawn down at a rapid pace, in a futile attempt to moderate fuel prices - or perhaps to influence the mid-term elections, if you are a cynic
https://www.statista.com/chart/28498/strategic-petroleum-reserve/
Below is a trend with a bit longer history, showing the unusual nature of the current SPR draw-down.
Meanwhile, Saudi Arabia announced that the white house had mis-characterized an OPEC+ oil curtailment of two million barrels per day as "taking sides" in the US midterm elections. These people get crazy when they don't get their way - they had asked for the Saudis to wait until after the mid-term elections, LOL.
UPDATE: Here is a very good article explaining why we might be about to find ourselves in deep trouble. I do not endorse the political views of the author, but the statistics are valid, as is the point that there has been time to address the shortage of diesel, but that nothing has been done about it.
UPDATE 2 (Bloomberg News): Rationing of home heating oil is now happening in the Northeastern US. This is before heavy winter demand has even set in, mind you!
UPDATE 3 (Time): US Eases sanctions on Venezuela. We never saw this one coming, did we?
2 comments:
First, I'm a cynic. Figure those controlling the government at this time, along with WEF, didn't get enough deaths from the covid pandemic. So, now they'll get things to a point where people may very well be fighting for food, eventually. Control the food and you control the population, or something like that. Sure hope your truck isn't diesel, especially with winter arriving.
I am also a cynic, however I don't think these guys are all that smart. It may just as well be that they are so inept and the systems are so dysfunctional due to money-makers calling the shots that it all falls apart.
Yes my truck is a diesel, but it's only used to plow my driveway and the church, and to haul trash to the transfer station a couple of miles away. I only fill it once or twice a year - and that's because I never allow the tank to drop below half. Part of being prepared for the worst is keeping half a tank of fuel on hand at all times :)
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