Energy source scarcity isn’t a new problem. In this age of global warming where every resource seems like coming to an end, a new difficulty emerges continuously.
This time, the problem has stroked the USA, and how!
According to recent reports, it is possible that the diesel will soon be over. After 25 days, people won’t see it anywhere. One of the fuel companies has launched an emergency delivery protocol and has asked the clients for a 72-hour notice before any delivery is attempted.
This is because the conditions are slowly worsening. For months, the country is facing a fuel decline and has reached its lowest level since October 2008. There might be price hikes and supply shortages for the next six months. Recently, the stock of fuel oils and diesel were standing at 106 million barrels. This was reported by the U.S. Energy Information Administration.
USA-Wide Diesel Shortage Only 25 Days Of Supply Are Reported To Be Available
Here in the state, diesel is used for multiple purposes, including trucking and agriculture. Even the distillate inventories have dropped down as compared to the seasonal average. The difference is approximately 26 million barrels when compared to the last 10 years.
The oil industry saw a huge loss when investors started engaging in risky assets. This happened due to the diminishing prospects of the Global economy.
According to Goldman Sachs, the shortage of diesel isn’t only confined to the USA but has also reached Europe. This will cause the prices to rise even further by winter.
Bloomberg has reported that Colonial Pipeline, one of the biggest diesel suppliers has booked to carry several distillates, including diesel to the East Coast. This will relieve some of the pressure that’s been stirring but the situation will not stabilize easily. The first delivery can take up to November.
This arising problem of diesel in the country has instigated traders to diverge their cargos. Those had to move to Europe but seeing the scarcity in the USA, they would not be delivered to the East Coast. There are approximately 90,000 tons of diesel along with other jet fuels in those cargoes.
Meanwhile, since there is a fuel shortage, the stock prices of the corporates are also decreasing. The problem is not only for the consumers but the stock market as well.
Those who are aware of this whole situation know that the Biden administration has already started examining several methods to increase the supply of emergency diesel. This will keep the consumers and industries safe, especially when there’s a lack of diesel and gasoline.
If sources are to be believed, the White House discussions weren’t allowed to be discussed with the public. Officials are anxious about whether the 1 million reserve fuel barrels would be enough. They need sufficient supply so that there’s no fuel problem in winter. The officials are evaluating different methods to increase the fuel supply.
There are only 2 weeks left for the mid-term elections and the country is facing a serious problem. The fuel supply is short and the prices might rise. Household finances can also be taxed and this scarcity can lead to high fuel transportation and heating cost.
There is a high chance that now Europe also might face the same problem. Fuel shortage is a rising issue that is attacking every other country by the day. The need of the hour is to save natural resources as much as possible. If that’s not done, there would be a worldwide crisis. The USA, the first world country can lose millions due to this supply, and soon consumers will show their disappointment.