The Diesel Shortage Hits America
Peter Zeihan
6 min
Diesel shortages will reverberate through the entire American economy for months. The US faces guaranteed transport problems affecting everything moved throughout the country for at least the next 18 months.
Chapters
-
0:00
Global Supply Disruption
Diesel shortages are driven by Russian refining destruction and Persian Gulf conflicts blocking exports.
-
1:46
The Jones Act Impact
US maritime transport laws force expensive trucking for coastal shipments, increasing diesel demand.
-
3:54
Regional Transport Bottlenecks
US regional shortages occur because infrastructure links between producing and consuming areas are weak.
Key points
- 0:00
Russia is now a net importer of diesel due to destroyed refining infrastructure.
- 0:00
Russian refineries will remain offline through the remainder of next year.
- 0:53
Saudi Arabia's pre-positioned crude exports are nearly exhausted due to pipeline damage.
- 1:27
The Strait of Hormuz remains mostly closed with only three ships passing through recently.
- 1:27
Approximately 20 million barrels of crude cannot get out due to these blockages.
- 1:46
US gas stations face price pressure even though the country is a diesel exporter.
- 1:46
California faces astronomically high diesel prices due to reliance on Jones Act shipping.
- 3:54
Trucks use diesel to ship fuel to regions that cannot make it themselves.
- 3:54
The US moved away from water transport a century ago despite having the best system possible.
- 3:54
Shipping by water costs less than one-tenth of shipping by truck.
- 3:54
US transport problems will affect every single thing moved throughout the country for at least 18 months.
On the map
Who and where
Places · 18
- United States 15
- California 4
- Texas 4
- Gulf Coast of the United States 3
- Louisiana 2
- South Carolina 1
- Florida 1
- Strait of Hormuz 3
- Mountain States 2
- Ukraine 3
- Russia 3
- Midwest Region 1
- Rocky Mountains 1
- Panama 1
- Red Sea 1
- Saudi Arabia 1
- Persian Gulf 1
- Iran 1
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