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June 30, 2017   |   Diesel Technology Forum

Policy Insider

Energy Independence Sparks Economic Stimulus

Growing diesel fuel exports can help expand employment in diesel producing sectors and provide economic stimulus to communities across the U.S.


Thanks to newfound energy reserves, U.S. refiners are meeting domestic energy demand and sending more and more finished energy products abroad. U.S. exports of ultra-low sulfur diesel (ULSD) fuel continues to top the list of finished oil and gas product exports. As more clean diesel fuel reaches overseas markets, demand for U.S. manufactured clean diesel engines and the vehicles and equipment they power can expand. Expanding production of clean diesel fuel and the manufacture of clean diesel technology will be a boost to communities across the country.

According to the U.S. Energy Information Agency, exports of U.S. ULSD have quadrupled since 2009. In fact, U.S. exports of ULSD is the #1 oil and gas product exported from the U.S. Much of these exports are destined for Mexico but also markets in Europe and expanding economies in Central and South America.

While this is great news for U.S. refiners, expanding exports of ULSD can also provide a much needed economic boost to communities across the country. The U.S. Energy Information Agency predicts that, thanks to new found oil and gas reserves, the U.S. will be a net energy exporter in the coming years. Expanding production and exports of oil and gas products, including ULSD, is expected to grow employment in the sector to 1.3 million jobs, according to the American Petroleum Institute.

The manufacturing of U.S. clean diesel technology is responsible for about 1.25 million well-paying jobs across the country. This includes the production of the latest clean diesel engines. According to recent estimates, 750,000 engines were produced in the U.S. from manufacturing facilities in 14 states. These engines power an enormous variety of off-road equipment, including construction and agricultural equipment, as well as commercial vehicles and pickup trucks. Much of this production occurs in the U.S. According to the Association of Equipment Manufacturers, the manufacturing of this equipment generates 1.3 million jobs.

State

Diesel Engines Produced

AL

6,500

GA

4270

IA

22,895

IL

3,800

IN

17825

MD

36,600

MI

152,500

MS

26,500

NC

296100

NY

77,225

OH

77,225

SC

850

TX

23800

UT

1,700


U.S. made clean diesel engines and the vehicles and equipment they power are also export powerhouses. In 2009, these exports totaled about $25 billion.

Exports (2009)

Value

Diesel Trucks

$9.1 billion

Equipment

$7.8 billion

Diesel Engines

$6.9 billion


More recently, the Association of Equipment Manufacturers estimates that 30 percent of all U.S. made construction and agricultural equipment in 2016 was ultimately destined for a market overseas.

Expanding overseas demand for U.S. refined clean diesel fuel can spark a growing appetite for U.S. made clean diesel technology. The latest clean diesel technologies require access to ULSD and growing demand for clean diesel fuel could help boost the overseas appetite for U.S. made clean diesel engines and the vehicles and equipment they power. Expanding employment in diesel producing sectors can provide economic stimulus to communities across the U.S. as more clean diesel reaches customers abroad. 



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Key Contact

Ezra Finkin
Director, Policy
efinkin@dieselforum.org
301-668-7230

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