Fuel Supply Update From Eric Osterhaus, VP Of Energy

Oct 31, 2022

Fuel Supply Update From Eric Osterhaus, VP Of Energy
Over the past couple of weeks, we have received numerous calls from customers that have been hearing and reading about an upcoming diesel shortage. I wanted to take this opportunity to provide a little more detail on that information.

The US has continually been well below the 5-year average on diesel supply for the past year. The one point that the media is not really saying at this time is that this diesel shortage is primarily focused in the northeastern states of the US. That pipeline system is currently at 40%-60% below their normal average, and allocations and other measures have been starting to be put in place for that territory.

Here in the Midwest, we are currently below our 5-year average, but we are definitely not in any type of critical issue for diesel supply. Overall, we have made it through harvest without any supply disruptions or allocations. Obviously, there is a fair amount of harvesting left for the northern Midwest, but that should be coming to a close shortly. Demand will start to slow, and supply should start to rebuild itself.

I have received no notifications or any type of information from our suppliers saying that they are concerned, worried, or panicked at this time. They are all keeping an eye on this situation and have assured us that they will be quick to respond with solutions.

I wanted to get this information out to all of you to help ease your fears at this time. As always, if you do have questions or concerns, please do not hesitate in reaching out to me.

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