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re: WSJ: Banning Diesel Exports a bad idea

Posted on 9/23/26 at 9:14 am to
Posted by Trevaylin
south texas
Member since Feb 2019
11636 posts
Posted on 9/23/26 at 9:14 am to
sooo, WSJ believes the high price of diesel is do to not enough pipeline capacity to the northeast?????

If that's the case why is cost of d in Corpus Christi 6 bucks where there is no pipeline requirement?

If that is the case why was d 3 bucks last year in the north east. Did Hochul and Mamdami shutdown pipelines in the last 12 months.

WSJ demonstrates lack of comprehension of how commerce works.
Posted by CitizenK
BR
Member since Aug 2019
16691 posts
Posted on 9/23/26 at 9:15 am to
quote:

This right here is the real truth.


I'm fairly certain that ethanol is keeping price of gasoline down.

The biggest renewable diesel plant is at Norco, owned by a subsidiary of Valero. Trainloads go mostly to CA. It's not the old biodiesel but is molecularly change animal and vegetable fats/oils turned into similar to diesel. I would be willing to be bulk price is cheaper than bulk ULSD right now

Also, WSJ doesn't understand than kerosene/jet fuel is often blended into diesel to achieve ULSD, also as price of diesel is higher than jet is sold into diesel.

Some refineries don't even sell kerosene/jet, they blend it into diesel constantly.
Posted by Nosevens
Member since Apr 2019
20707 posts
Posted on 9/23/26 at 9:22 am to
Well if WSJ thinks it’s bad then I must rethink supporting the idea being as now good
Posted by CitizenK
BR
Member since Aug 2019
16691 posts
Posted on 9/23/26 at 9:25 am to
quote:

If that is the case why was d 3 bucks last year in the north east. Did Hochul and Mamdami shutdown pipelines in the last 12 months.


Pipelines go to near DC. New England has imported gasoline, diesel, jet fuel and LNG for years. It's cheaper that way. The shutdown of Hovensa at St. Croix cut off the gasoline, diesel and jet fuel shipped to the NE as well as Hess' supply of cat cracker feedstock for its major cat cracker across from NYC and all of the gasoline and diesel it provided. 75,000 BPD.
Posted by SlidellCajun
Slidell la
Member since May 2019
17194 posts
Posted on 9/23/26 at 9:28 am to
Pretty much what I posted on the other thread

Glad to see wsj support the notion that this is a bad idea.

Another in a long line of bad ones too
Posted by CitizenK
BR
Member since Aug 2019
16691 posts
Posted on 9/23/26 at 9:35 am to
quote:

"We can't send the diesel to the midwest, northeast, and California, but we can send it overseas!!"

Does anyone honestly believe this? If we can get it to other countries, there is a way to transport it throughout this one.


Transportation is cheaper in foreign flag ships than truck or rail by a lot.

Hawaii gets crude oil from the Middle East, not Alaska partly for this reason.
This post was edited on 9/23/26 at 9:38 am
Posted by Doak Walker
Dallas
Member since Sep 2022
733 posts
Posted on 9/23/26 at 9:37 am to
quote:

But there’s not enough pipeline capacity to move the diesel in the Gulf Coast that is normally exported to the Northeast and California, or for that matter to significantly boost flows to the Midwest. A ban on exports would increase global diesel prices, which would smack Americans living in coastal areas that rely on imports.

They need to cut down on the crack at WSJ. "Shipping" diesel to U. S. coastal ports is not "exporting".
Posted by imjustafatkid
Alabama
Member since Dec 2011
68798 posts
Posted on 9/23/26 at 9:37 am to
quote:

Hawaii gets crude oil from the Middle East, not Alaska for partly for this reason.


Hawaii makes sense. The northeast and midwest doesn't.
Posted by CitizenK
BR
Member since Aug 2019
16691 posts
Posted on 9/23/26 at 9:40 am to
quote:

Hawaii makes sense. The northeast and midwest doesn't.


I'm pretty sure that is NE and California. not the Midwest which has plenty of refining capacity
Posted by imjustafatkid
Alabama
Member since Dec 2011
68798 posts
Posted on 9/23/26 at 9:52 am to
quote:

I'm pretty sure that is NE and California. not the Midwest which has plenty of refining capacity


I'm just going off of what the WSJ article says:

quote:

But there’s not enough pipeline capacity to move the diesel in the Gulf Coast that is normally exported to the Northeast and California, or for that matter to significantly boost flows to the Midwest. A ban on exports would increase global diesel prices, which would smack Americans living in coastal areas that rely on imports.


The person who wrote that piece is a moron.
Posted by OldManRiver
Prairieville, LA
Member since Jan 2005
7753 posts
Posted on 9/23/26 at 9:57 am to
quote:

Well of course the Chyna Street Journal would say this

Yep, just like those noted TDS assholes Chris Wright and Doug Burgum, it's always OMB with those guys
quote:

Trump's backing of a diesel export ?ban puts ?him at odds with his own energy officials, who warn it could raise fuel prices on the coasts and tighten supplies for European allies.
Energy Secretary Chris Wright told a Daily Caller event last week a ban would lead to a glut of diesel in the US Gulf Coast and prompt US refiners to cut production rates, which would quickly reduce gasoline production. "If you start putting barriers on flows, pretty quickly you will reduce the production, and you'll have less supply. We need more supply, not less supply," Wright said.

Doug Burgum, the US interior secretary, said ?that a ban would be unlikely to lower ?petroleum prices and could lead to retaliatory measures ?by energy exporting countries, which states like California rely on for some of their energy.
Posted by j1897
Member since Nov 2011
5080 posts
Posted on 9/23/26 at 9:59 am to
quote:

This right here is the real truth.

But neither President Trump or Republicans are willing to “hurt the poor Iowa corn farmers”, especially with Iowa being a main party primary state. Much easier to stick it to “big bad oil”.


This would also lower beef prices substantially. But the GOP is owned by farmer Joe and his "anti socialism government subsidies"

A lot of GOP are hypocrites.
Posted by lowhound
Effie
Member since Aug 2014
11202 posts
Posted on 9/23/26 at 10:02 am to
So it's a Democrat made problem that there aren't enough pipelines to California, the Midwest, and Northeast? That's what I'm reading. I'm fine with stopping the blending requirements for sure, but we also need more pipelines ASAP.
Posted by Mo Jeaux
Member since Aug 2008
65084 posts
Posted on 9/23/26 at 10:12 am to
quote:

The person who wrote that piece is a moron.


Says Imjustafatkid to the WSJ editorial board.

Regardless, you seem to have confused refining capacity with pipeline capacity.
Posted by imjustafatkid
Alabama
Member since Dec 2011
68798 posts
Posted on 9/23/26 at 10:28 am to
quote:

Regardless, you seem to have confused refining capacity with pipeline capacity.


Nope. If it can be transported on a container ship, it can be transported in our country.

Your lack of ability to reason, or the WSJ editorial board's lack of ability to reason, does not make my ability to reason flawed.
This post was edited on 9/23/26 at 10:34 am
Posted by chadau79
Daphne, AL
Member since Sep 2009
3501 posts
Posted on 9/23/26 at 10:40 am to
I think in this example there is not enough pipeline capacity to send it across the country but it is easy enough to load a tanker on the gulf coast. The Jones Act adds limitations on domestic tankers as a poster described in another thread.
Posted by imjustafatkid
Alabama
Member since Dec 2011
68798 posts
Posted on 9/23/26 at 10:42 am to
quote:

I think in this example there is not enough pipeline capacity to send it across the country but it is easy enough to load a tanker on the gulf coast. The Jones Act adds limitations on domestic tankers as a poster described in another thread.


Waivers to this act are available. If Trump were to ban diesel exports, it would almost certainly be for a reason that would allow for such waivers.
Posted by War Eagle 777
Georgia
Member since Nov 2010
510 posts
Posted on 9/23/26 at 10:49 am to
quote:

But there’s not enough pipeline capacity to move the diesel in the Gulf Coast that is normally exported to the Northeast and California, or for that matter to significantly boost flows to the Midwest.


So how does the diesel get to the Northeast and California now?

Something can be carried by ship from one US port to another and that is not an "export"
Posted by War Eagle 777
Georgia
Member since Nov 2010
510 posts
Posted on 9/23/26 at 10:52 am to
quote:

Transportation is cheaper in foreign flag ships than truck or rail by a lot. Hawaii gets crude oil from the Middle East, not Alaska partly for this reason


Not to mention it is very difficult to drive a truck or train from Alaska to Hawaii
Posted by imjustafatkid
Alabama
Member since Dec 2011
68798 posts
Posted on 9/23/26 at 10:56 am to
quote:

Not to mention it is very difficult to drive a truck or train from Alaska to Hawaii


yeah we're really not talking about Hawaii in this conversation. Was silly for that to be mentioned.
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