America runs on diesel but now there are fewer refineries then in 1980. Inflation could get worse

Rev 6:6 NAS “And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Inflation is Going to Get Worse. Blame a Lack of Diesel
  • It cost Carl Smith $999 to refill the 275-gallons fuel tank of his semi-trailer on Sunday for a run from Ohio to Wisconsin—and that’s just because his fuel credit card cuts off at $1,000. In the nearly 40 years he’s been driving, the price of diesel fuel has never been that high.
  • The U.S. economy runs on diesel. It’s what powers the container ships that bring goods from Asia
  • The farmers who grow the food you eat put diesel in their tractors to plow the fields, and the workers that bring construction equipment to build your home put diesel in their trucks.
  • The price of diesel went above $5.50 a gallon in the beginning of May, and has stayed there ever since, a 70% increase from just a year ago. Diesel supplies have tightened just about every week since January and could continue to do so as more people fly, drive, and shop during the summer months, consuming more petroleum products.
  • Tom Kloza, global head of energy analysis for OPIS. “We’ve already seen the highest prices in our lifetimes, and it could go even higher.”
  • There are also fewer refineries, which process crude oil into diesel and other products, in the U.S. than were just a few years ago. There are just 124 now operating, down from twice as many in 1980, and down from 139 in 2016, according to the U.S. Energy Information Association. The northeast region is particularly spare, with just seven refineries today, down from 27 in 1982.

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