Shortage of diesel fuel

[mto502]

Originally Posted by kdauto

Diesel is 2.55$ and up/l in Quebec. That works out to 7.45$ per U.S. gallon once exchange rate is factored in. add 2% for credit card fees (exchange fee) on top of that.

$5. a gallon in the US seems like a steal!

[Fogbelly]

Originally Posted by kdauto

People read and understand whatever they want on this. From what I know, oil companies HAD drilling rights but refused to drill or start new projects. It was better for the bottom line (their investors) to keep the status quo and artificially reduce supply. This is no different than OPEC has been doing for decades.

Punishment to oil companies is they're no longer granted drilling rights. I am no expert but this is how I understood it.

87 Octane was 1.99$/l CDN to 2.16$/l, and diesel was 2.56$/l CDN at the stations I saw today. MUCH worse than you see. I can only imagine the prices in Europe, where they've been paying those prices for decades.

I'm not convinced on any bonafide shortages, but I can see the oil czars making it look like there are.

It's over 530$ to fill my dually these days, so I do it on 50-60$ shots as needed since I drive very little and use the new ebike more and more.

It's not "artifical".

It is simple too risky too take on the long term investment in the U.S. that these projects require.

Atlas shrugged.

[kdauto]

Originally Posted by Fogbelly

It's not "artifical".

It is simple too risky too take on the long term investment in the U.S. that these projects require.

Atlas shrugged.

Could be, maybe not. With fuel prices ridiculously high, wouldn't it make sense to make more of it since the demand is there? Hmmmm

Oil hovers at 100$ a barrel or so, and gas is 2$/l here. When oil was 150-160$ a barrel, we were complaining of fuel being high at 1.40$-145$/l. Something is fishy, it's not just the war, covid and other factors. The same fishy business is going on in all spheres of commerce the past few months especially.

Never let a disaster go to waste they say.

[radar]

Originally Posted by kdauto

Could be, maybe not. With fuel prices ridiculously high, wouldn't it make sense to make more of it since the demand is there? Hmmmm

Oil hovers at 100$ a barrel or so, and gas is 2$/l here. When oil was 150-160$ a barrel, we were complaining of fuel being high at 1.40$-145$/l. Something is fishy, it's not just the war, covid and other factors. The same fishy business is going on in all spheres of commerce the past few months especially.

Never let a disaster go to waste they say.

Investors and the people that lend them money are afraid of investing in stranded assets. Right now on a world wide level there are 17000 ish new vehicles hitting the streets every day without gas tanks, without crankcases containing oil, without transmissions containing transmission fluid and without exhaust systems or catalytic converters. That means the oil companies are losing 17000 customers each day every day. And that’s today. That number is expected to double within 18 months, and then it’s actually expected to start really growing.

I doubt you’ll see a new refinery or increased refinery capacity anytime soon. Nobody wants to finance it.

But that is just my humble opinion.

[96 Wideglide]

Don't forget, a lot of ocean going ships are now converting to diesel from bunker C.

[spock12]

DW worries about everything. With my auxiliary tank I can go a while without diesel. Maybe the high prices will keep some at home. I have a good friend from Florida that’s going to stay in one campground for a month then go back home. At my age I can’t let high fuel prices keep me at home, next year I could be dead so I’m going while I can. I think the problem is no new refineries and a lot out of business in the last 25 years so there is enough blame to go around. As long as I can get the diesel I’m going this year and next year.

[jacknife]

Go online look up fuel cards . Find one u like and they can save you as much as 50 cents per gal .

[High Road Travelers]

Originally Posted by radar

Investors and the people that lend them money are afraid of investing in stranded assets. Right now on a world wide level there are 17000 ish new vehicles hitting the streets every day without gas tanks, without crankcases containing oil, without transmissions containing transmission fluid and without exhaust systems or catalytic converters. That means the oil companies are losing 17000 customers each day every day. And that’s today. That number is expected to double within 18 months, and then it’s actually expected to start really growing.

I doubt you’ll see a new refinery or increased refinery capacity anytime soon. Nobody wants to finance it.

But that is just my humble opinion.

Radar is on target here. With politicians, climate watchers, scientists and just people that jump on the band wagon all screaming for an end to the use of fossil fuels and using no carbon, who in their right mind is going to invest money in drilling and refining. This attitude has been going on for a while now also, so it's building up steam.
A good bit of my personal investments are in gas and oil companies. They paid good dividends and I thought were a good bet to keep on prospering (and they may continue), but I am a little leery and am selling oil and gas stocks and looking for alternative investments. (Warning - do not take my investment advice).
The oil companies can see the industry environment a lot better than I and it doesn't look like they are willing to expand and build new refineries and drill a lot of wells either.
No one knows what will happen in the future, if there is a future even, but it would not surprise me in the least bit if there is not a fuel shortage coming up.
As far as prices are concerned, supply and demand sets the price of most everything in the end. There can be short term manipulating at times, but in the end supply and demand rules.
Just my opinion, Thanks

[Backcountry1]

Originally Posted by kdauto

Could be, maybe not. With fuel prices ridiculously high, wouldn't it make sense to make more of it since the demand is there? Hmmmm

Oil hovers at 100$ a barrel or so, and gas is 2$/l here. When oil was 150-160$ a barrel, we were complaining of fuel being high at 1.40$-145$/l. Something is fishy, it's not just the war, covid and other factors. The same fishy business is going on in all spheres of commerce the past few months especially.

Never let a disaster go to waste they say.

Permit to drill to well pumping oil out can take YEARS. (Most of that time is regulatory and engineering though). From spud to well pumping… takes MONTHS. It isn’t just some “go open ‘er up more!!” action. There is a lot of work that goes into getting a well to produce. And a lot of money.

And the well doesn’t just pump out oil straight into a truck, there is a lot of infrastructure that has to go into it… Infrastructure that oil companies really DO NOT want to put in money, time, and resources in to right now. Today, oil is pumping out at $110/bbl. By the time that well is active, oil could be $50/bbl again. Oil producers have come to learn financial restraint (more or less because banks, stockholders, and investors have held their feet to the fire to do so), and they aren’t willing to jump full bore back into it.

Plus… the service companies (the people who actually do all the work) are having one heck of a time trying to get people to work in the oilfields again. Not enough employees equals not a lot of work getting done.

[PJStough]

Originally Posted by wog099

Radar is on target here. With politicians, climate watchers, scientists and just people that jump on the band wagon all screaming for an end to the use of fossil fuels and using no carbon, who in their right mind is going to invest money in drilling and refining. This attitude has been going on for a while now also, so it's building up steam.
A good bit of my personal investments are in gas and oil companies. They paid good dividends and I thought were a good bet to keep on prospering (and they may continue), but I am a little leery and am selling oil and gas stocks and looking for alternative investments. (Warning - do not take my investment advice).
The oil companies can see the industry environment a lot better than I and it doesn't look like they are willing to expand and build new refineries and drill a lot of wells either.
No one knows what will happen in the future, if there is a future even, but it would not surprise me in the least bit if there is not a fuel shortage coming up.
As far as prices are concerned, supply and demand sets the price of most everything in the end. There can be short term manipulating at times, but in the end supply and demand rules.
Just my opinion, Thanks

You do realize that the cutback in drilling was between November of 2018 and August of 2020 when the number of operating oil well drilling rigs dropped for over 880 down to only about 180?

[Fogbelly]

Originally Posted by radar

Investors and the people that lend them money are afraid of investing in stranded assets. Right now on a world wide level there are 17000 ish new vehicles hitting the streets every day without gas tanks, without crankcases containing oil, without transmissions containing transmission fluid and without exhaust systems or catalytic converters. That means the oil companies are losing 17000 customers each day every day. And that’s today. That number is expected to double within 18 months, and then it’s actually expected to start really growing.

I doubt you’ll see a new refinery or increased refinery capacity anytime soon. Nobody wants to finance it.

But that is just my humble opinion.

Correct.

[spock12]

Originally Posted by jacknife

Go online look up fuel cards . Find one u like and they can save you as much as 50 cents per gal .

What fuel cards? I have not seen any cards that save .50 cents a gallon off. I have a PenFed card that gives me 5% off which now is over .25 cents a gallon. Verizon has a card that gives 4% off fuel if you swipe the card but the Verizon card takes money off your cell phone bill. Russia produced a lot of diesel and with that gone it has caused the price of diesel to get really high. Supply and demand. Should the government put price controls on fuel then there will be shortages everywhere. I hope the government stays out of the diesel problem if not it will only get worse.

[mto502]

Looks like they're having a gas shortage now in some states:

Washington gas stations run out of gas, add extra digit in anticipation of $10 dollar prices

[Mod Edit]

[Mod Edit]

[radar]

Originally Posted by mto502

Looks like they're having a gas shortage now in some states:

Washington gas stations run out of gas, add extra digit in anticipation of $10 dollar prices

[Mod Edit]

Surprising to see how many people think that the Keystone line was a working pipeline. Construction was shut down, not oil. It wasn’t due to open for years.