An expanding economy means demand for freight transportation including over the road trucking driven mostly by Class 8 trucks.
February 06, 2018 | Diesel Technology Forum
The Energy Information Administration is out with its long-term energy forecast….and the U.S. will set the stage for energy markets in the decades to come. As part of America’s energy dominance, U.S. refiners are expected to produce more diesel fuel helping to underpin global economic growth.
The Energy Information Administration is out with its annual long-term forecast for production, consumption and prices for energy products... and the U.S. will set the stage for energy markets in the decades to come. As part of America’s energy dominance, U.S. refiners are expected to produce more diesel fuel helping to underpin global economic growth. The major takeaway from the report is the impact of America’s newfound sources of energy on world market. Within just a few years, the U.S. is set to become a net exporter of energy products, primarily natural gas and liquid fuels like gasoline and diesel fuel. U.S. refiners will have access to record quantities of crude oil and will still import some crude oil but will produce more gasoline and diesel fuel that is demanded by the U.S. economy. While exports of natural gas are expected to soar in the coming years, U.S. refined diesel fuel will be a leading energy export commodity by U.S. refiners.
Economies around the world depend on diesel fuel. As economic activity expands in developed and emerging economies, the need to power trucks, trains and ships to deliver freight, buses and cars to move people, agricultural equipment to cultivate crops and construction equipment to complete must-do infrastructure will all be fueled by diesel. Thanks to American refiners, these economies will have access to this fuel to get the job done.
These boom times for American energy dominance doesn’t necessarily mean lower prices at the pump. Today, U.S. gasoline and diesel prices are at record lows and prices are slowly trending upwards. In the next few years, diesel prices are expected to grow faster than gasoline as the global economy begins to take off. This is expected as the machinery of modern economies around the world require diesel technology to deliver prosperity.
U.S refiners are set to fuel an upswing in the global economy powered by diesel. Here in the U.S., we will see a modest increase in the price of diesel but this may be a small price to pay for expanding global commerce.