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s of Friday, October 14, the U.S. had 25.4 days of diesel supply left in storage. That was according to data from the Energy Information Administration (EIA). That means the shortage will hit immediately after the election. We have already seen some rationing in the northeast.
For the past two years, amid pandemic closures and climate pledges promising to invest more in renewable, green energies, refineries in the U.S. have significantly reduced their capacity—leading to less diesel produced in the country, Newsweek reported earlier this month.
Last week, the Energy Information Administration (EIA) reported that distillate inventories were at their lowest levels since 2008. (The primary distillates are diesel, jet fuel ,and heating oil). However, in 2008 distillate levels were low coming out of spring. Currently, they are low going into fall. That’s far worse than the situation in 2008, says one Forbes contributor.
According to Robert Rapier, a senior contributor to Forbes, “Distillate demand generally spikes in spring — when farmers are planting crops — and in fall, when they are harvesting those crops and people start buying fuel oil for winter. Thus, a low distillate inventory in late April 2008 isn’t quite as serious as a low inventory in October 2022. In fact, distillate inventories haven’t been this low in October since the EIA began reporting this data in 1982.