A Diesel Fuel Shortage Storm on Top of Record High Prices - Part 2

Another development has surfaced in the diesel fuel shortage story that could evolve into a near-term disaster in a supply chain that’s already in a state of crisis. The issue is an additive package shortage for diesel engine oil lubricants that are manufactured in the refining industry. Wholesale distributors of diesel engine oil have already begun to ration supply through delivery requests.

If you’re unfamiliar with the recent history that led to rampant inflation in oil, gas, energy, and the shortages that followed, a good place to start is “The Inflationary Black Gold Rush at the Gas Pump” Part 1, 2, and 3 from Feb. 2021 through Mar. 2022. On May 17, I published “A Diesel Fuel Shortage Storm on Top of Record High Prices,” and on Jun. 17, I penned “Biden’s Meatsack is Building Back Broke for Klaus’s Soulless Borg” which ties all of the above into the Great Reset and New Green Deal agenda that indoctrinated Biden and his cohorts on Capitol Hill.

Let’s start with an interview from early June on Fox News that addressed why truckers are quitting in record numbers when the trucking industry is already experiencing a massive shortage of drivers. The second video drives home the supply shortage and price surge in diesel fuel that’s frustrating independent truckers.


Truck drivers parking their rigs as gas prices continue to climb… “The rising costs of trucking trickle down to goods and groceries as companies struggle to manage inflation… ‘These customers,’ said Mayberry of the people who hire him to haul goods across the country. ‘They want to pay you the same amount they paid you six, seven months ago. They can’t do it. And me, I’ll let my truck sit.’” – KHOU 11, Jun. 8


Truckers warn skyrocketing diesel prices are making US supply-chain and trucking industry unsustainable… “‘If something drastic doesn’t change in the next few weeks/months, I promise you, you’ll see empty shelves everywhere you look,’ Smith wrote in a post that was shared nearly 290,000 times. ‘You’ll see chaos as people fight for the basic necessities of everyday life.’” – Business Insider, Jun. 10

Diesel Shortages Hitting East Coast (language warning) – Patriot Rants, Jun. 20


Before diving into diesel engine oil, there’s another variable in the supply chain that’s multiplying shortages across the board. After two years of failed negotiations between the unions and the railroad industry, workers are threatening to go on strike this summer when the rail industry is already experiencing a labor shortage and capacity issues. Diesel fuel and diesel exhaust fluid (DEF) deliveries by rail were recently reduced by 50% on the Union Pacific rail system.

Crisis On The Rails: Pilot Flying J CEO on Rail Mandates & Fuel Costs… “The ongoing ‘crisis on the rails’ has paralyzed farmers, leaving them literally ‘hours away from depopulating herds.’ The rail crisis, which is ‘harming the nation’s economy,’ impacts the supply chain of U.S. agriculture, energy, and shipping across the board. To address the severe situation, the Surface Transportation Board (STB) held a hearing in late April, giving those affected the opportunity to speak. Pilot Flying J CEO Shameek Konar spent his time during the extensive testimony revealing the unprecedented difficulties his company faces following unheard-of restrictions imposed by Union Pacific Railways.” – UndercoverDC, May 31


Diesel Exhaust Fluid (DEF) shortage means some diesel users will be paying more… “The main component of DEF is a chemical compound called urea, a byproduct of industrial ammonia production. Russia exports the most urea. It is engaged in war with Ukraine… ‘We haven’t experienced (shortages) much here in the Midwest, but things do trickle,’ Poole said. ‘The coastal cities have probably experienced it more than we have, but it starts there, then hones in here.’” – KYTV, Jun. 11


Mediation fails at railroad talks, Biden likely to appoint Emergency Board… “After two years of fruitless negotiations railroad contract talks remain at an impasse and will soon require President Biden to intervene by appointing a Presidential Emergency Board. The negotiations are currently being mediated by the National Mediation Board (NMB), which stated Tuesday that mediation had reached a dead end. The contract talks involve approximately 140,000 railroad workers who are members of 13 rail unions. These unions have stated that they will not accept binding arbitration, which is normally the next step in the contract process, where both parties submit to the determination of a supposedly neutral federal third party.” – WSWS, Jun. 17


CN confirms IBEW members are on strike… “Canadian railway CN says operations are continuing after members of the International Brotherhood of Electrical Workers (IBEW) went on strike Saturday.” – Freight Waves, Jun. 20

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Diesel Fuel Shortage is Here (timestamp 3:38) – Popular Preparedness, Jun. 15


Weekly U.S. Ending Stocks of Distillate Fuel Oil (109,709 Barrels) – EIA, Jun. 10

Weekly U.S. Ending Stocks of Distillate Fuel Oil - June 10, 2022

EIA: US Refining Capacity Sinks To Near Decade Low… “U.S. refining capacity is now the lowest it’s been since 2014… this year’s refining capacity has decreased by more than a million barrels per day… Gasoline prices in the United States began ticking up in 2021, and with high refining utilization rates and low crude product inventories, the refining segment has been fingered as one of the biggest price culprits. Chevron’s CEO Mike Worth said earlier this month that he doesn’t see any relief to the refining capacity issue in sight, even going so far as to suggest that the United States may not see any new refineries built, ever, given their long lead times and lengthy ROI combined with the uncertainty of the future of fossil fuels in general given climate concerns.” – OilPrice.com, Jun. 21


Massive U.S. oil refinery on track to shut down amid fuel shortages, record prices… “The Houston, Texas, facility – which is operated by LyondellBasell Industries, spans 700 acres and was built in 1918 – is scheduled to permanently close by the end of 2023, but could shut down earlier if a ‘major equipment failure’ spreads to major units, two people familiar with the issues told Reuters. The refinery processes 268,000 barrels per day (bpd) of oil, produces 92,600 bpd of diesel fuel, 89,000 bpd of gasoline, and 44,500 bpd of jet fuel.” – WND, Jun. 7

U.S. diesel price per gallon weekly chart as of Jun. 22, 2022…

U.S. Diesel Sales Price Monthly Chart as of June 22, 2022 - Technical Analysis by TraderStef


The elephant in the room that mainstream media is not discussing yet is a shortage in specific diesel engine oil grades that’s brewing under the hood. The following two videos are from a diesel engine mechanic based in North Dakota. He also provides a third video with a brief whiteboard presentation to show how crude oil is processed into various distillates. The two leading manufacturers mentioned for diesel engine oil additive packages in base oil are Chevron and Lubrizol.

Diesel Engine Oil Additive Package Shortage Part 1 – @adtruckingrepair, Jun. 7


Diesel Engine Oil Additive Package Shortage Part 2 – @adtruckingrepair


I’ll close up shop tonight with a video presentation from Mike Adams at the Health Ranger Report. The video is long, and Mike can be dramatic at times, but his concern is grounded in fact and well worth your time for the little gems of information throughout his presentation. In the meantime, buy food!

Situation Update Diesel Engine Oil Outage Alert – Jun. 22


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A Diesel Fuel Shortage Storm on Top of Record High Prices - Part 2

A Diesel Fuel Shortage Storm on Top of Record High Prices – Part 2