Check out what’s clicking on FoxBusiness.com
A major fuel supply and logistics company is raising a red flag on upcoming diesel fuel shortages.
Mansfield Energy issued the alert Friday stating there was a developing diesel fuel shortage in the southeastern region of the United States. The company speculated that the shortage could be generated from “poor pipeline shipping economies” and a historically low supply of diesel reserves.
“Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” the company said. “These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.”
EUROPE’S ENERGY CRISIS RAISES FIREWOOD PRICES, THEFT FEARS
Diesel and heating oil inventories are down for the Northeast from Maine to Maryland. (iStock / iStock)
States expected to experience serious affects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina.
The Biden administration says it is keeping a close watch on diesel inventories and working to boost supplies following news that reserves have been depleted and could run out in less than a month if not replenished, sparking fears of shortages and rising prices.
SAUDI ENERGY MINISTER SLAMS RELEASE OF OIL RESERVES AS ‘MECHANISM TO MANIPULATE MARKETS’
President Biden announces his administration’s plans to eliminate junk fees for consumers, Oct. 26, 2022, in the South Court Auditorium on the White House campus in Washington. (AP Photo/Patrick Semansky, file / AP Newsroom)
The Energy Information Administration (EIA) reported this week that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, a low not seen since 2008. National Economic Council Director Brian Deese acknowledged to Bloomberg that the level is “unacceptably low,” and “all options are on the table” to address the situation.
“Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility,” Mansfield’s press statement said.
The company continued, “Mansfield is also moving the Southeast to Code Red, requesting 72 hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels.”
FILE PHOTO: Storage tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB), gasoline, diesel fuel, and other petroleum products, in Carson, Califor (REUTERS/Bing Guan / Reuters Photos)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Northeast Home Heating Oil Reserve (NEHHOR) holds roughly 1 million barrels of home heating oil, and House Democrats from New England are asking President Biden to release some of those reserves to help reduce home heating prices in the region leading into the winter months.
But experts say the developing home heating oil shortage is not going away anytime soon.
FOX Business’ Breck Dumas contributed to this report.
