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Diesel Rationing #178123
05/12/2022 12:13 PM
05/12/2022 12:13 PM
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
ConSigCor Offline OP
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ConSigCor  Offline OP
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Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
NYC Billionaire Catsimatidis Warns of Looming East Coast Diesel Rationing

(Bloomberg) — The diesel crisis in the US may get worse this summer with the potential of shortages and rationing on the East Coast, said billionaire refinery and fuel station owner John Catsimatidis.

“I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” Catsimatidis, CEO of United Refining Co., said in a phone interview. “Right now inventories are low and we may see a shortage in coming months.”

East Coast stockpiles of the fuel have fallen to the lowest in data going back to 1990. National inventories stand at the lowest in 17 years as the US has become the world’s diesel supplier of choice. Fuel markets have been in disarray since growing bans against Russian products restricted one of Europe’s main suppliers of energy. With exports draining US tanks, the East Coast is feeling the pinch most acutely due to a lack of sufficient fuelmaking capacity there.

Consumers are already feeling the squeeze. Diesel prices have risen for the past 16 straight days and hit a new record of $5.553 a gallon Tuesday, according to the American Automobile Association. Gasoline prices rose to a new record of $4.404 a gallon.

Fuel supplies are tight across the country after refineries mothballed plants during the pandemic when fuel demand was decimated by stay-at-home orders. The East Coast suffered a particular blow after Philadelphia Energy Solutions permanently closed its refinery, which supplied the entire East Coast, in 2019 following an explosion.

Companies are already working around the tight diesel market in order to keep trucks on the road. Pilot Flying J Inc., which operates a chain of truck stops, adopted a contingency plan to keep certain East Coast markets fully supplied, according to Brad Jenkins, senior vice president of supply and distribution. The company is “taking additional actions to secure extra supply and mobilize our fleet to deliver diesel to areas facing tight availability, such as Virginia and Georgia,” he said.


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Diesel Rationing [Re: ConSigCor] #178124
05/12/2022 12:15 PM
05/12/2022 12:15 PM
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
ConSigCor Offline OP
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ConSigCor  Offline OP
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Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
The East Coast is now going into a diesel shortage. That means even MORE cost for trucking. Guess who ultimately pays it?



"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Diesel Rationing [Re: ConSigCor] #178125
05/12/2022 01:43 PM
05/12/2022 01:43 PM
Joined: Jan 2002
Posts: 22,447
Tulsa
airforce Online content
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airforce  Online Content
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Posts: 22,447
Tulsa
Fuel rationing, baby formula shortages, Ministry of Truth... Everything is going just swimmingly for the Biden Administration. it's no accident that so many Democrat congressman have decided this is a god year to announce their retirement.

Onward and upward,
airforce

Re: Diesel Rationing [Re: ConSigCor] #178126
05/12/2022 03:48 PM
05/12/2022 03:48 PM
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
ConSigCor Offline OP
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ConSigCor  Offline OP
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Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
All of them should retire, dems and publicons.


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Diesel Rationing [Re: ConSigCor] #178127
05/12/2022 04:16 PM
05/12/2022 04:16 PM
Joined: Jan 2002
Posts: 22,447
Tulsa
airforce Online content
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airforce  Online Content
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Tulsa
No argument there. And if they don't retire voluntarily, we should help them along.

Onward and upward,
airforce

Re: Diesel Rationing [Re: ConSigCor] #178130
05/12/2022 11:22 PM
05/12/2022 11:22 PM
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
ConSigCor Offline OP
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ConSigCor  Offline OP
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Posts: 19,066
A 059 Btn 16 FF MSC
Biden pulls 3 offshore oil lease sales, curbing new drilling this year

With the nationwide offshore drilling program expiring at the end of June, oil companies and climate activists face uncertainty over the future of leasing


By Anna Phillips


The Interior Department confirmed Wednesday that it will not hold three oil and gas lease sales in the Gulf of Mexico and off the coast of Alaska that had been scheduled to take place, taking millions of acres off the auction block.
10 steps you can take to lower your carbon footprint

The decision, which comes as U.S. gas prices have reached record highs, effectively ends the possibility of the federal government holding a lease sale in coastal waters this year. The Biden administration is poised to let the nationwide offshore drilling program expire next month without a new plan in place.

While President Biden has spoken in recent weeks about the need to supply oil and gas to Europe so those nations can stop importing energy from Russia in light of the ongoing war in Ukraine, the move would mark a victory for climate activists intent on curbing U.S. fossil fuel leasing.

Barring unexpected action, the current five-year offshore drilling program will lapse at the end of June. Interior cannot hold any new oil and gas lease sales until it has completed a replacement plan. But though the federal government is legally obligated to prepare one, the administration has not released its proposal, nor have officials said when it might be coming.

The program’s looming expiration means the government doesn’t have enough time left to hold the three remaining oil and gas lease sales scheduled under the current plan. Interior spokeswoman Melissa Schwartz cited a lack of interest from oil companies, as well as legal obstacles and a time crunch, as reasons for nixing the planned auctions.

In an email Wednesday evening, Schwartz said the department “will not move forward” with a roughly 1 million-acre sale in Alaska’s Cook Inlet “due to lack of industry interest in leasing in the area.”

She added that the department will not hold “lease sales 259 and 261 in the Gulf of Mexico region as a result of delays due to factors including conflicting court rulings that impacted work on these proposed lease sales.”

Environmentalists praised the move, but the oil and gas industry and Republicans voiced dismay. Offshore drillers have sought to raise the alarm for months about the leasing program’s June 30 expiration date, saying that a lapse in the program would cost thousands of jobs and billions in lost tax revenue.

Erik Milito, president of the National Ocean Industries Association, which represents offshore energy companies, said in an interview Thursday that the expiration of the offshore leasing program will chill investment in the Gulf of Mexico.

“Over the past few years, there have been several announcements of new projects coming online, so it’s very positive," he said. “However, we’re not going to be able to continue with that trend if we can’t get new leases.”

Biden officials have said they are working on a proposal for a new offshore program and describe the industry’s concerns as overblown. According to Interior’s figures, more than three-quarters of the offshore federal waters already under lease remain unused — that’s about 8 million acres where companies could drill new wells but have not.

Because most oil-and-gas production takes place on private and state-owned land, experts have said there’s little evidence the administration’s leasing approach will affect prices in the months ahead. Even if Interior held the three planned offshore lease sales, it typically takes years for companies to drill new wells and ramp up production.

Still, Republican lawmakers have seized on the issue as a way to direct Americans’ frustration over rising prices at the White House.

Rep. Bruce Westerman (Ark.), the top Republican on the House Natural Resources Committee, called the administration’s decision a sign of its “blatant disregard” for Americans struggling with inflation.

“I can’t imagine a more tone-deaf, shortsighted decision that jeopardizes our economic and energy security without doing a single thing to help the environment or the American people," he said in a statement.

Replacing the current plan won’t happen overnight. The timeline spelled out in regulations governing the program requires a three-step process involving environmental analysis, public comment periods and a review by the president and Congress.

It typically takes the government at least six months to a year to finalize a new offshore drilling plan. This means that even if the Interior Department unveils a new proposal in the coming weeks, the soonest energy companies will learn whether they will have access to new leases, and where, is probably early 2023.

Amid rising oil prices, inflationary pressure and the upcoming midterm elections, there is much uncertainty over how far the administration is willing to go on offshore drilling.

As a candidate, Biden promised to making tackling climate change a priority. He temporarily halted new oil and gas leasing on federal land and waters a week after taking office. But after a Louisiana judge struck down the moratorium last summer, administration officials said they were legally obligated to continue leasing.

Since then, the political pressure to expand drilling on federal land and waters has increased. Oil and gas industry lobbyists and Republican lawmakers have tried to blame high gas prices on the president’s climate policies. For his part, Biden has shifted from talk of banning new drilling to proposing a new policy that would push oil companies to drill on unused leases.

In the midst of internal wrangling and a broader political divide over the future of oil and gas leasing, the administration has delayed making a decision about whether to continue selling new offshore leases and, if so, how much of the nation’s coastal waters should be up for auction.

Conservationists have argued that the environmental risks posed by offshore drilling outweigh the benefits of future leases. Offshore oil and gas production accounts for a relatively small percentage of the nation’s overall supply, they argue, and the 2010 BP oil spill in the Gulf crippled the seafood industry, hurt tourism and depleted tax revenue in southeastern states.

“Big Oil is using anything they can find to try to extend the life of a dying fossil fuel industry. They are lying when they say they need more leases,” said Diane Hoskins, a campaign director with the environmental group Oceana. “We cannot drill our way out of high gas prices, and it would take years or decades for any new leases to begin producing.”

Of the 11 lease sales planned under the current program, seven have been held successfully. Interior held one more in November, auctioning off 80 million acres in the Gulf of Mexico in the largest offshore oil and gas lease sale in the nation’s history. Only a fraction of those leases sold, and a federal judge later threw them out, citing a flawed environmental analysis completed during the Trump administration.


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Diesel Rationing [Re: ConSigCor] #178140
05/14/2022 06:46 PM
05/14/2022 06:46 PM
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
ConSigCor Offline OP
Senior Member
ConSigCor  Offline OP
Senior Member
Joined: Oct 2001
Posts: 19,066
A 059 Btn 16 FF MSC
Got Gas?



"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861

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