On Tuesday, Mansfield Energy, a fuel delivery firm, warned that diesel shortages were imminent in the Northeast and Southeast.
Bloomberg found that while the country’s distillate fuel stocks are at their lowest point since 2008, the four-week average of distillates supplied, a proxy for demand, surged to its highest seasonal level since 2007. According to a press statement from Mansfield, prices have increased much more rapidly than previously reported.
As a result of a combination of low diesel stockpiles and unfavorable pipeline transportation economics, some Southeast markets are experiencing shortages. These have been “happening here and there, with locations like Tennessee witnessing more significant issues,” the firm said. Posters on the “low rack” usually sell a lot of gasoline before they run out, but currently, they just have a couple of loads left.
The bulk of U.S. transportation is done by semi-truck or rail. This reliance on diesel fuel—which has a greater energy density than other liquid fuels—suggests that supply chain disruptions and rising costs will only increase. AAA reports that the current national average price of diesel gasoline is $5.31 per gallon.
According to Mansfield Energy’s latest report, “low-high gaps are substantially wider than typical,” forcing fuel providers to “draw from higher cost choices.” Carriers “may have to visit many ports to get supply,” slows delivery, and burdens the area’s available trucks.
Afflicted areas have faced similar shortages in the recent past. Last year, roughly half of the gasoline and diesel supply in the eastern United States was lost after a ransomware assault shut down the Colonial Pipeline. Dozens of states were under a proclaimed state of emergency by the Department of Transportation.
The price level grew 8.2% between September 2021 and September 2022 due to supply chain constraints and rising energy expenses. Vice President Joe Biden admitted record inflation but said: “some progress” was made because of the legislation he had pushed through.
The Energy Information Administration reports that the Strategic Petroleum Reserve has dropped from 638 million barrels under Vice President Biden’s watch to 402 million barrels, the lowest amount in decades. There have been at least five million barrels sent to countries including India, the Netherlands, Italy, and a Chinese petroleum business with ties to Hunter Biden, even though the release was intended to lower domestic energy prices.
Consistent with polling, the dismal economic situation will be a significant factor in swaying the votes of the American people in the next midterm elections. The midterm elections are less than two weeks away, and a recent Rasmussen poll indicated that 60% of voters hold President Joe Biden and his policies responsible for “rising inflation.” In contrast, just 13% believe that the White House has effectively brought prices down. Many unaffiliated people throughout the country are not happy with their country’s current leadership.
Pennsylvania is an energy-rich swing state, and fracking is a persistent problem. Democratic contender John Fetterman, recovering from a stroke that sidelined him from the campaign trail for months, had difficulty answering why he suddenly shifted toward backing the mining practice during the commonwealth’s lone Senate debate. “Yes, I’m in favor of fracking jobs. That’s not something I feel at all. “Fracking is fine by me,” he declared. Yes, I will continue to support fracking from where I stand.