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re: National Gasoline Price Average back above $4/gallon; LA, TX, MS, LA still under $3.65/gal

Posted on 8/18/26 at 7:48 am to
Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
79790 posts
Posted on 8/18/26 at 7:48 am to
Pipelines are a decade in the making and are easy targets.

Won't solve the diesel/gasoline crisis about to hit the world.
Posted by ragincajun03
Member since Nov 2007
29872 posts
Posted on 8/18/26 at 7:58 am to
Thank you for the downstream and diesel educations.
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
72793 posts
Posted on 8/18/26 at 7:58 am to
quote:

Pipelines are a decade in the making and are easy targets.


Right. I dont see it being a viable solution. Installation of a friendly regime in Iran isnt going very well.

The only real viable solution is western hemisphere supply chain. Cheap energy from such an unstable region is going to be a never ending war, as it has already been for the past ~50 years.

Posted by ragincajun03
Member since Nov 2007
29872 posts
Posted on 8/18/26 at 8:03 am to
quote:

We're headed for a diesel and aviation fuel crisis.


I’ve seen articles about this possibility for months now, but at least to my unprofessional eye, seems everything is business as usual. So I can’t tell if such articles and predictions are just fear mongering or real.
Posted by Night Vision
Member since Feb 2018
24079 posts
Posted on 8/18/26 at 8:08 am to
quote:

We're headed for a diesel and aviation fuel crisis.


Hitler eventually had to make his diesel from coal.
Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
79790 posts
Posted on 8/18/26 at 8:09 am to
There is a cliff but you really don't see it until you are off it. Once the panic price starts it will take a lot to end well since there are no reserves to calm the market.

The inventories for finished products are really low and the means to produce are 95% or better. That 95% is a rate that is impossible to maintain long term.

China has the ability to export finished products now but you have to ask yourself how much are they willing to chase profits if it comes at the expense of their security. Russia has absolutely no capacity to export and can't really supply themselves. South America has some export capacity and are helping fill in barrels to Europe.

Dangote in Africa is a new wild card. Will be fun to see if he exploits the market.
This post was edited on 8/18/26 at 8:12 am
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
72793 posts
Posted on 8/18/26 at 8:30 am to
quote:

Dangote in Africa is a new wild card. Will be fun to see if he exploits the market.


Do they have the capacity to make a real impact? Seems like we'd need 10 more of those.
Posted by HeartAttackTiger
Member since Sep 2009
615 posts
Posted on 8/18/26 at 9:00 am to
Times are not good. Just fyi, I paid $3.27 this morning at Sams. Probably could have gotten it cheaper - Sams is convienent for me as I pass it twice a day.
Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
79790 posts
Posted on 8/18/26 at 9:07 am to
700kbd, they can make an impact if decide to go after it.
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
72793 posts
Posted on 8/18/26 at 9:12 am to
What are they doing with it now? Im not familiar with it at all. I basically just know it exists and makes primarily distillate. I guess its primarily supplying Africa?
Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
79790 posts
Posted on 8/18/26 at 9:48 am to
Yeah, Dangote himself viewed it as a way to get off European control. A lot of European refiners stayed running by exporting high sulfur distillate into Africa. This closed the door and also brought cleaner fuel to Africa.

Dangote built this as a way to become refined products independent. The majors fought him by refusing to build pipelines to supply the refinery. I think that view is changing some now. They imported a ton from the US to start.

Because of their position they cand compete with the US east coast, Europe, and south American market.
Posted by Hobie101
Member since May 2012
1219 posts
Posted on 8/18/26 at 11:19 am to
quote:

What we REALLY need is a western hemisphere supply chain that can support our demand and totally eliminate middle eastern oil from our economy.


What we really need is alternative forms of energy that can reduce oil demand and stimulate free market competition
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
72793 posts
Posted on 8/18/26 at 11:25 am to
Its a nice thought but not realistic. Even with massive government subsidy nothing "alternative" has made a real difference. Even with heavy government obstruction, diesel is still the cheapest way to move goods and likely will be for several more decades.
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