Diesel shortage causing headaches for truckers
CTVNews.ca StaffPublished Monday, November 7, 2011 7:30PM EST
Across Western Canada, truck drivers are engaged in a desperate and sometimes futile search for fuel after diesel production has slowed down to a trickle.
Maintenance at an Edmonton plant that supplies hydrogen to oil giant Suncor has slowed fuel production causing a diesel shortage from Northern Ontario to B.C.
For more than a week, truckers have had trouble finding diesel -- and when they do find it they are paying more for it.
Dave MacNevin, an operations manager at Whitecorp Transport Inc., said that many truck drivers have taken to their radios in the search for fuel.
"Everybody's on the two-ways talking about diesel cardlocks shutting down because they're out of fuel," MacNevin told The Canadian Press.
About 90 per cent of Canada's consumer goods and food are moved by truckers and a fuel shortage could mean fewer toys and turkeys on store shelves.
"If you don't have fuel you can't run your vehicles," Bob Dolyniuk from the Manitoba Trucking Association told CTV News. "And if you can't run your vehicles you can't produce services to your customers."
Gas stations that are receiving diesel shipments have been limiting what customers can buy. On Wednesday, an Edmonton station blocked off pumps as customers lined up to fill their tanks.
Suncor says it's searching for more supply offshore and across North America.
The shortage is being blamed on an explosion at a Regina refinery in October that reduced diesel output and slowed production at Suncor's Edmonton plant because of a hydrogen shortage.
The Alberta refinery is expected to resume normal production mid-month, but service stations have been warned that the shortage could last into December.
SOURCE:
CTV
That's interesting. I am able to fill up anytime I want. I have never seen a gas station that offers diesel that did not have any in Alberta.
Moreover, when I do a google search and ask: "Was there a refinery explosion in Regina Saskatchewan in October, 2022", I cannot find any corresponding news article verifying a Regina refinery explosion in 2022.
Google
EU hoarding Russian diesel before ban – Reuters
The oil-products embargo begins in less than three months and the bloc lacks alternative sources, the news outlet reports
European traders are boosting purchases of Russian diesel ahead of the EU embargo on the country’s oil products, which comes into force in February, Reuters reported on Monday, citing cargo tracker Vortexa.
According to the report, Russian diesel shipments headed to the Amsterdam-Rotterdam-Antwerp (ARA) storage region surged to 215,000 barrels per day from November 1 to November 12. It is a 126% increase from October, according to Pamela Munger, Vortexa senior market analyst.
Moreover, according to Refinitiv data, so far in November Russian diesel made up 44% of the bloc’s imports of the fuel, against 39% last month. This means that Russia remains the region’s largest diesel supplier, despite the fact that overall imports of Russian fuels to the EU dropped significantly over the past months due to Ukraine-related sanctions.
The EU embargo on Russian oil comes into force next month, while the ban on petroleum products will take effect on February 5. Analysts warn it will be difficult for the region to find alternative sources for diesel once this happens, as they are scarce and more costly, while Europe’s domestic diesel production falls short of the region's consumption.
“
The EU will have to secure around 500,000 to 600,000 barrels per day of diesel to replace the Russian volumes; replacements will come from the US as well as east of Suez, primarily the Middle East and India,” Eugene Lindell, market analyst at energy consultancy FGE, told Reuters.
SOURCE:
RT
Diesel Shortage Update as U.S. Supply Will 'Barely' Make it Through Winter
BY
GIULIA CARBONARO ON 11/14/22 AT 6:12 AM EST
fter reporting the lowest inventory since 2008 right when the high-demand season was approaching, U.S. diesel supplies have slightly increased in early November, though prices for the distillate fuel remain high.
When the Energy Information Administration (EIA) reported in mid-October that, as of October 14, the country had 25.4 days
left of distillate supplies—which include diesel, jet fuel and heating oil—analysts and experts started fearing a supply crunch that could potentially lead to a significant slowdown of the U.S. and the global economy.
How much diesel is left in the U.S.?
Patrick De Haan, GasBuddy's head of petroleum analysis, told
Newsweek: "We've seen distillate supplies rise slightly to 26.0 days, and inventories last week rose about 400,000 barrels, while the areas with the lowest inventories saw a well-needed rise in supplies as well."
Though the
diesel shortage is affecting the entire country, inventory are particularly low on
the East Coast, with the North East experiencing the highest diesel prices, according to Georgia-based major fuel supply and logistics company Mansfield Energy. The South East is reporting the worst supply outages.
A combination of high demand and low inventory caused by the decreased capacity of
U.S. refineries—many of which have closed since 2020 or have been repurposed—and bans on the imports of Russian petroleum products have caused the diesel shortage. It has left farmers and homeowners struggling on the verge of a challenging winter.
While rising inventories are certainly good news for the U.S. economy, diesel prices remain high. The national average is of $5.359 per gallon, lower than November 13's average at $5.362 per gallon but higher than last week's average of $5.338 per gallon and October's average of $5.215 per gallon, according to the American Automobile Association (AAA).
On June 19, 2022, diesel reached its highest-recorded average price at $5.816 per gallon.
"Transportation costs continue to rise due to the tight supply, with average diesel prices holding around $5.36 a gallon nationally, but some areas are seeing diesel over $6 a gallon," said De Haan.
"I'm hoping it might improve, but if it's a cold winter, heating oil, which is very similar to diesel, could see higher consumption. We may make it through winter—but barely."
SOURCE:
Newsweek
Rocky Mtn Hilux
