Diesel Prices Are Going Up Really Fast

[JRS]

Another perspective on the shortage.

https://www.washingtonpost.com/business/energy/us-east-coast-diesel-supply-is-running-on-fumes/2022/05/04/1ef4623e-cb83-11ec-b7ee-74f09d827ca6_story.html

Eldest son works for Bloomberg. Via their terminal, he showed me the number of oil refineries in the world and there's not that many and all were reported to be running last night.
If I counted correctly, there's only 18 in the entire US! Only 3 in Texas.... That info surprised me and this number won't improve given the huge cost of bringing a new one into production.

 

[Texas Clodhopper]

Eldest son works for Bloomberg. Via their terminal, he showed me the number of oil refineries in the world and there's not that many and all were reported to be running last night.
If I counted correctly, there's only 18 in the entire US! Only 3 in Texas.... That info surprised me and this number won't improve given the huge cost of bringing a new one into production.

Actually, there are 27 oil refineries in Texas. Because the environmental requirements and permitting have become so stringent, most likely there won't be any more built in the foreseeable further. Its estimated to take a minimum of 5 years to get the permitting and what company want to invest millions or billions in building a refinery and have the construction shut down when a different administration takes over. Hmmm...any pipeline come to mind?

 

[Jim]

That info surprised me and this number won't improve given the huge cost of bringing a new one into production.

It would take subsidies and assurances from the US government that the refinery would prosper (with or without the subsidies) for X number of years, making it a viable investment for the owners. The result would be a smooth transition from fossil fuels to renewable alternatives.

But our government doesn't plan things that far ahead.

 

[Texas Clodhopper]

While we're on this subject, the last oil refinery built in the US was Marathon Oil, Garyville, LA in the late '70s.
Edit: This was the last major refinery built. There may have been some relatively newer refineries built but with minimal thru-put.

 

["EZ"]

I noticed on this trip that the gas pumps no longer shut off at $100.00 or $125.00. They now let you go to $150.00 before they shut off and make you start all over again. I put my credit card in 3 times at $150.00 each time and still didn't get a full tank of diesel. I was just tired of pumping so I left.

 

["EZ"]

Putting some numbers, pen to paper, what will the difference in cost be for a trip assuming CG rates remain steady? Assuming 7 mpg for Diesel then a 1,000 mile trip will cost you around $450 more. Looking at it this way seems to sting a little less. By the way, I'll be the one driving 45 mph now so honk to say hi as you pass and be sure to show me that #1 sign that you love me.

Neal,
I slowed down to 65 MPH on this trip to try to save fuel and also because of my friends steer tire blow out that almost killed his wife. (That's still fresh on my mind. ) But the funny thing was I noticed that I was passing some tractor trailers at 65 MPH!! Seems they are also slowing down quite a bit to save some fuel as well.

 

[Voyageurs]

Neal,
I slowed down to 65 MPH on this trip to try to save fuel and also because of my friends steer tire blow out that almost killed his wife. (That's still fresh on my mind. ) But the funny thing was I noticed that I was passing some tractor trailers at 65 MPH!! Seems they are also slowing down quite a bit to save some fuel as well.

We came back from our last trip last week on a highway with stretches of 100 kmh speed limit. We never tow faster than 90 kmh so we are always sitting in the right lane with the cruise on 90 kmh. We were blown away to see that pretty much everybody was hanging out in the right lane. Trucks, cars, RV’s. I’m thinking people are trying to save a few bucks.

We start our 11000 kilometre, 6 province, 8 week tour on Tuesday. It will be interesting to see how many people are in the campgrounds.

Cheers.

 

[JRS]

Actually, there are 27 oil refineries in Texas. Because the environmental requirements and permitting have become so stringent, most likely there won't be any more built in the foreseeable further. Its estimated to take a minimum of 5 years to get the permitting and what company want to invest millions or billions in building a refinery and have the construction shut down when a different administration takes over. Hmmm...any pipeline come to mind?

Woah! Bloomberg data is a bit off. Thought number didn't seem right
Did some quick searches last night and found it costs over $10B to put a new one in so that's not going to occur

 

[Voyageurs]

Woah! Bloomberg data is a bit off. Thought number didn't seem right
Did some quick searches last night and found it costs over $10B to put a new one in so that's not going to occur

And not when they are losing gas and diesel customers to electric vehicles every day at an ever increasing rate.

Jmho. Not an expert.

 

[Texas Clodhopper]

Interesting that the demand for diesel and gasoline increases every month. It takes a lot of petroleum products to build those electric cars also.