It has often been said that if you chase the global climate change ideology to its natural conclusion, we end up in communal groups sitting around a tepid campfire eating some form of sustainable algae cakes and picking parasites off each other… Prior to Joe Biden that prediction might have seemed like hyperbole. Now, not so much.
Indeed, the Green New Deal energy policy of Joe Biden creates massive downstream consequences. Unfortunately, the White House doesn’t seem to care. The high prices and scarcity of critical goods are a feature, not a flaw, as they chase their climate friendly Build Back Better agenda.
Following the continuum of intended consequence, now we have diesel fuel shortages beginning to hit the U.S. economy; and with scarcity comes higher prices of an almost astronomical scale. “The national average price of diesel is now $5.54 per gallon, which is an increase of 22 cents from last week, which was when the most recent record was set. Data shows there’s no state that’s currently seeing diesel prices below $5.12 per gallon.” (LINK)
Making matters even worse is a drop in available inventory of diesel fuel which is about to become a crisis for the east coast of the U.S. Some Truck Stop operators like Love’s and Pilot are already warning their big rig customers they may not have fuel for truckers.
[…] “Love’s is monitoring the fluid situation on the East Coast, we have experienced minimal outages during low traffic hours,” Oklahoma-based Love’s Travel Stops said in an emailed statement. “The company has no plans to restrict purchases of diesel.”
[…] Earlier on Wednesday, the U.S. government’s Energy Information Administration said total inventories of distillates, which is mainly diesel fuel but also heating oil, fell last week to a 17-year low of 104 million barrels, which is 23% below normal.
On the East Coast, the situation is even worse. The EIA said distillate fuel oil inventories in the so-called PADD 1 district that covers the Northeastern states fell by 1.1 million barrels last week to just 21 million barrels, the lowest ever recorded in data going back to 1990.
Love’s truck stops, with some 550 locations across 41 states, also seemed to confirm reports on social media Wednesday that said Love’s and other truck stops such as Pilot were informing their fleet operators that shortages of diesel fuel on the East Coast may happen in the coming week at some stores. (read more)
Not only is the logistics of transportation contingent upon the use of diesel fuel for tractor trailer deliveries of essential goods, the other big users of diesel fuel are also farmers.
If it wasn’t challenging enough to triple the price farmers are paying for fertilizer this year, now the costs to operate the equipment they depend on has just doubled with the increases in diesel fuel.
“Some farmers are now even reporting farm diesel prices are higher than on-road diesel, which is typically not the case. … Certain areas of the country have seen shortages already and we expect that to continue. Supplies at New York Harbor–a hub for diesel distribution–are at a 30-year low,” says Meyer. “As such, the East Coast of the U.S. has been hit especially hard, resulting in diesel prices above $6.00 per gallon in that area. (more)
ENERGY POLICY:
♦ West Coast ports that cannot handle container off-loads due to emission regulations.
♦ Nationwide fertilizer shortages and high prices.
♦ Massive increases in gasoline and diesel fuel costs.
♦ Limited shoreline refinery capacity due to federal regulations.
♦ Stunning increases in food costs at the grocery store.
… And what does the administration do against this backdrop?
WASHINGTON (AP) — The Biden administration says it is canceling three oil and gas lease sales scheduled in the Gulf of Mexico and off the coast of Alaska, removing millions of acres from possible drilling as U.S. gas prices reach record highs.
The Interior Department announced the decision Wednesday night, citing a lack of industry interest in drilling off the Alaska coast and “conflicting court rulings” that have complicated drilling efforts in the Gulf of Mexico, where the bulk of U.S. offshore drilling takes place.
The decision likely means the Biden administration will not hold a lease sale for offshore drilling this year and comes as Interior appears set to let a mandatory five-year plan for offshore drilling expire next month.
[…] A federal appeals court in New Orleans, meanwhile, is considering a challenge to a moratorium on new federal leasing that Biden imposed soon after taking office in January 2021. Biden said the administration needed to consider the effect of new drilling on climate change and conduct proper environmental reviews.
Louisiana and 12 other states challenged Biden’s order, saying laws passed in response to the 1970s oil crisis require lease sales on federal lands and waters.
The Biden administration failed to “grapple with prior analyses” of the planned sales to give a valid reason for postponing or canceling them, Louisiana Deputy Solicitor General Joseph Scott St. John told a 5th U.S. Circuit Court of Appeals panel this week. The three-judge panel did not indicate when they will rule. (read more)
