October 14th, 2022, was a day of dire predictions in the United States. That was the day the Energy Information Administration (EIA) reported that the U.S. had less than thirty days left of diesel fuel supply to support our entire economic infrastructure.
Well, that stinks, but how does it affect you and me?
The Impact of Diesel Fuel On Our Economy
While citizens immediately feel increases in gas prices at the gas pumps, we tend not to see the impact of diesel fuel on our lives until we start looking at supply chain issues. Diesel fuel is used in construction, farming, heating, manufacturing, and transportation, and shortages have SIGNIFICANT implications for American life and our creature comforts. This country runs on diesel fuel, and skyrocketing prices coupled with shortages could mean that life is going to get a tad uncomfortable in the coming months.
Great Timing, Brandon.
With the 25-day grace period rapidly closing, we find ourselves with either nefarious orchestration or ironic timing (you choose). This period of dire shortage and high demand is set to begin right around the same time as our midterm elections. Get ready, America. Not only do we head into an uncertain and highly emotional election sequence, but we may be faced with tightening our belts even further as we find ourselves short on nearly every resource, service, and product that we’ve grown accustomed to having in our daily lives.
What will we do?
How Did This Happen?
Some might say that this shortage results from fewer refineries continuing to produce distillates after the shutdown of 2020 and the pipeline disaster of 2021. Still, others may attribute it to high demand and even higher inflation that makes the option of purchasing excess supplies out of the question for many companies. Most of us are pointing fingers right now at the Russia/Ukraine crisis, blaming Russia for cutting off our daily supply of nearly 700,000 barrels of petroleum and other petroleum products. Now that we’re not playing nice in the sandbox anymore, we’re being punished. However, there is a much more sinister undercurrent to this supply chain madness. Something that your current administration is hoping you don’t find out before Tuesday’s elections.
Corporate Greed Costs Us Dearly
Even as the United States grapples with one of the worst diesel shortages on record since the mid-80s, U.S. companies are making a profit by continuing to produce and EXPORT more than a million barrels PER DAY of distillate to other countries.
WTH?
Crude oil companies are doing this because they can, simply because they can make more money by doing this than by selling to U.S. companies. Products go to the highest bidder with the least amount of quality control restrictions, and that’s how they get the job done.
Using The Jones Act As An Excuse For Economic Ruin
The Jones Act requires that U.S. cargo companies that wish to ship goods between U.S. ports must be carried by United States ships with American crews, significantly driving up shipping costs for these companies. These costs have to be covered somehow. Many refineries use this “excuse” to ship to Europe or South America, where shipping costs are cheaper. Other companies produce substandard distillates that don’t meet stringent U.S. standards. They continue to produce cheaper versions of distillates to justify offshore business with other countries while driving up their costs to continue to make top-dollar profits.
A Little Political Help Here, Please
Why aren’t we banning these companies from shipping overseas if we are experiencing the greatest shortage we’ve seen in nearly half a century? This is ultimately a political question that would require state, local, and national intervention. I’d say that at this point, Brandon has his hands full with the Russia/Ukraine situation, an impending disaster of an election season, and, of course, getting the lid off his pudding cup for a nightly snack. King Brandon can’t be bothered with these trivial discomforts suffered by the very citizens he swore to protect and defend.
What Ya Gonna Do?
Well, America, what are you going to do with this information? Burying your head in the sand is no longer an option. Nearly every household in the country will feel the effects of political neglect and poor corporate decision-making. Perhaps even more hangs in the balance this Tuesday than you previously thought. If you don’t like how this country is being run, then make better choices at the polls. “We the People” need to take power back and teach our representatives how to represent us, not the other way around.
God be with you! God bless America!
~KK
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