July 11, 2022
A diesel crisis could slam the economy
By John M. Contino
U.S. oil refineries are running at 94% capacity. They are refining one million barrels of oil per day less than in 2020, due in part to a conversion to biofuels, and an industry move towards a “net zero carbon strategy,” which means less investment in refineries that use hydrocarbons. An explosion in the Philadelphia Energy Solutions refinery in 2019 closed that refinery permanently. The capacity of existing refineries has been expanded over the years, but a major refinery hasn’t been built in the U.S. since 1976.
A crisis more serious than $5 gasoline may be brewing, and it revolves around diesel fuel. Diesel engines power not just the big rigs on the road, but all the trains that supply coal to electric power plants and fertilizer to farms. Most tractors and combines run on diesel, as do fire trucks, ambulances, and military vehicles. Many of the mammoth vessels that transport shipping containers across the oceans are powered by huge diesel engines, and the furnaces of some older residential and commercial buildings burn diesel.
Diesel engines require diesel gasoline, diesel oil and diesel exhaust fluids (DEF), and shortages of the last two items may be reaching a critical stage. Since 2010, the government has required DEF to be injected into the exhaust stream from diesel engines to meet current emission standards. From Newsweek:
The U.S. could soon experience a severe shortage of diesel exhaust fluid (DEF), impacting U.S. drivers already hit with soaring fuel prices. DEF is a solution made up of urea and de-ionized water that is needed for almost everything that runs on diesel. It… works by converting nitrogen oxide produced by diesel engines into nitrogen and steam… Russia is a major fertilizer exporter and a top exporter of urea, which is manufactured as a derivative of natural gas. Supplies, therefore, have been impacted by the war.
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https://www.americanthinker.com/blog/2022/07/a_diesel_crisis_could_slam_the_economy.html