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A major fuel supply and logistics company is raising a red flag for upcoming diesel fuel shortages.
Mansfield Energy issued the warning on Friday that there is a developing diesel fuel shortage in the southeastern region of the United States. The company speculated that the shortage could be caused by “weak pipeline ship economies” and a historically low supply of diesel reserves.
“Poor pipeline shipping economics and historically low diesel inventories combine to create shortages in various markets throughout the Southeast,” the company said. “These have occurred sporadically, with areas like Tennessee seeing particularly acute challenges.”
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Diesel and heating oil supplies have fallen in northeast Maine to Maryland. (iStock / iStock)
States expected to experience serious impacts from the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina.
The Biden administration says it is keeping a close eye on diesel stockpiles and is working to increase stocks after it was revealed that reserves have been exhausted and could run out in less than a month if they are not replenished fears of shortages and rising prices.
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The Energy Information Administration (EIA) reported this week that the US had just 25 days of diesel in reserve as of October 14, a low not seen since 2008. Brian Deese, director of the National Economic Council, confirmed to Bloomberg that levels are “unacceptably low” and “all options are on the table” to address the situation.
“As conditions change rapidly and the market economy changes significantly each day, Mansfield is transitioning 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 and is requesting 72 hour notification for deliveries where possible to ensure fuel and cargo 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 the California Air Resources Board (CARB), gasoline, diesel fuel and other petroleum products in Carson, Calif. (Portal/Bing Guan/Portal Photos)
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The Northeast Home Heating Oil Reserve (NEHHOR) holds about 1 million barrels of domestic heating oil, and New England House Democrats are asking President Biden to release some of those reserves to help drive home heating prices in the region into the winter months reduce.
However, experts say the developing heating oil shortage will not go away anytime soon.
FOX Business’ Breck Dumas contributed to this report.