Fuelin’ Around: Chevron Buys Hess

While coverage of high finance isn’t generally a top priority of this site – we know most of you lot would rather read about Murilee’s latest Junkyard Find and, to be honest, so would I – any deal involving a pair of major fuel station brands is worth more than a passing mention.

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Oregon Ends Ban on Self-Serve Gasoline

Oregon and New Jersey are the only two states that require motorists to have an attendant pump gas for them. Well, they were the only two -- now New Jersey is the only one.

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Energy Company Warns Diesel Situation 'Rapidly Devolving'

Following news that the U.S. diesel supply has sunk below 25 days, Mansfield Energy issued an alert pertaining to shortages in the southeastern region of the country. While no direct reasons were given, the company noted that diesel reserves have been holding at historic lows throughout most of this year. 

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Bad News About the U.S. Diesel Supply

Over the summer, the United States witnessed record fuel prices. But the elephant in the room wasn’t how much people were having to pay for regular unleaded gasoline, it was the possibility that the nation might run into diesel shortages going into the fall.

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Fuel Prices Are Allegedly Cooling Off

With the last several months delivering record-breaking fuel prices, as society endures what has undoubtedly been the largest spike in energy cost and inflation since the 1970s, everyone has been hoping to catch a break this summer. Some have even gotten theirs. While things are still looking exceptionally bleak in the long term, the United States appears to be enjoying a modest reprieve.

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Gas War: Republican States Sue EPA Over Californian Standards

Last week, a group of Republican attorneys general decided to sue the Environmental Protection Agency (EPA) over its decision to reinstate the waiver allowing California to set its own limitations on exhaust gasses and zero-emission vehicle mandates that would exceed federal standards.

The agency approved the waiver after it had been eliminated as part of the Trump administration’s fuel rollback on the grounds that it would create a schism within the industry by forcing automakers to produce vehicles that catered to the Californian market at the expense of products that might be appreciated in other parts of the country. However, Joe Biden’s EPA sees things differently and has aligned itself with the California Air Resources Board (CARB) in giving the state more leeway to govern itself in regard to emissions policing.

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Porsche Investing in Synthetic 'eFuels'

Despite Porsche transitioning to all-electric vehicles with the rest of Volkswagen Group, the brand believes that its customers will still want to drive around vintage gasoline models even after the European Union has banned them into oblivion. This is especially important for the iconic 911, which the company has repeatedly hinted would be one of the last models in its lineup to ditch internal combustion.

With countless racing series already devoted to classic examples of the car, Porsche wants to ensure there’s a solution for motorists who want to do more than pet theirs in a silent garage should the government introduce even stricter standards for automobiles than what’s already coming down the pike. So it’s revisiting alternative fuels — specifically a carbon-neutral alternative to gasoline that would work in traditional engines — from Chilean e-fuel producer Highly Innovative Fuels, with whom it’s already investing.

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Gas War: EPA Reinstates California's Ability to Set Emission Limits, EV Mandates

The U.S. Environmental Protection Agency has opted to reinstate California’s ability to set tailpipe rules and zero-emission vehicle mandates that are more rigid than federal standards. After quarreling for years over the Trump administration’s decision to roll back Obama-era fueling standards deemed untenable, the Golden State now has the ability to once again make harder for its citizens by forcing them to purchase the kind of vehicles it feels they should be driving — rather than leaving it up to the individual that’s actually buying the car.

Though it might not matter at this point. While California effectively served as a defensive shield against proposed fueling rollbacks while Trump was in office, the Biden administration strategy is broadly in line with its agenda of making gasoline unappetizing to consumers to ensure a speedy transition to electric vehicles. California doesn’t even want people to have access to gas-powered lawn care equipment. The state has effectively served as a test case for Build Back Better since before the phrase passed through the lips of a single politician.

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Alright, Let's Talk About Fuel Prices and How We Got Here

Fuel prices have, like most other things, become totally ridiculous. In the United States, the average rate for a gallon of gasoline has eclipsed $4.00 for the first time in a decade. Though what’s probably the most alarming is how quickly it happened. Plenty of Americans could still find fuel for under $2.00 a gallon in April of 2020, meaning we’ve seen prices effectively double within two years in the United States. Meanwhile, European nations more accustomed to lofty fuel bills have been sounding the warning bells (especially in regard to diesel) for months.

Despite the issue existing long before Russia invaded Ukraine, the war has become the de facto explanation among politicians for why you had to swap to less-fancy dog food and off-brand soda to keep the truck gassed up. This is also influencing the government’s response to how to handle the present fuel crisis, which looks as if it’ll be getting worse before it gets better. But let’s take a look at how we got here before we dive into what’s being done (or not done) about it.

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Summer Gas Shortage Likely for Dumbest Reason

As if you needed more doom and gloom to kick off this week, the National Tank Truck Carriers (NTTC) lobby has confessed that its fleet will go into the next few months operating well below capacity. That means there’s a very good chance that some parts of the country could see gas shortages over the summer. While we’re praying that this doesn’t come with with the deluge of less-than-desirable automobiles that followed the infamous 1973 oil crisis, a similar spike in fuel price is likely as gasoline becomes sporadically difficult to find.

With the United States technically still energy independent, the culprit is not a foreign oil embargo but our own inability to plan ahead. North America was already operating with a deficit of qualified tanker drivers ahead of the pandemic. Lockdowns suppressed demand as everyone was forced to remain immobile, suppressing demand that ultimately encouraged widespread layoffs and early retirement. Now there aren’t enough drivers as demand stabilizes.

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California Wins the Gas War, Fickle Automotive Coalition Realigns Position

The Coalition for Sustainable Automotive Regulation (CSAR) is officially withdrawing from a lawsuit between California and federal authorities over the coastal state’s ability to establish its own emissions standards. California leadership had vowed to ignore the Trump administration’s proposed rollback and began making binding side deals with automakers (specifically BMW, Ford, Volkswagen, Volvo, and Honda) committed to adhering to the aggressive limits established under President Obama. Unfortunately, this ran the risk of undermining the revised national standards penned shortly after the United States became energy independent. It also set up the CSAR to embrace any entity that had views conflicting with California Air Resources Board.

Federal concerns were that the Golden State setting its own targets would butt heads with the relaxed national benchmarks and ultimately divide the U.S. market and may even influence the types of vehicles that were manufactured for all of North America. But the issue became moot once President Biden broke the record for executive orders by signing 22 in his first week. Predictably, the brunt of these were designed to instantly undo any actions taken throughout the duration of the Trump administration and included one directing the Department of Transportation and EPA to reconsider the 2019 decision to remove California’s authority to limit tailpipe emissions by April and revise the fuel-efficiency standards for automobiles by summer.

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Gas War: Justice Department Drops Antitrust Probe Against Automakers Siding With California

The United States Department of Justice has ended its investigation into Ford, Honda, Volkswagen, and BMW over a presumed antitrust violation stemming from a deal they made with California to adhere to regional emission rules. Their agreement technically circumvents the current administration’s plan to freeze national emissions and fuel economy standards — established while President Obama was still in office — at 2021 levels through 2026. Under the California deal, the automakers promised to comply with pollution and gas mileage requirements that are more stringent than the federal standards suggested in the rollback proposal.

But the probe also looked like retaliation from the Trump administration against automakers publicly siding with the state causing the most trouble in the gas war. Under the deal, the automakers promised to comply with pollution and economy requirements that are tougher than proposed federal standards. Despite the corporate promise being as empty as an Oscar speech, it was still an affront to the current administration’s efforts to tamp down lofty efficiency targets put in place just days before it came into power.

While the Justice Department hasn’t explicitly said why it closed the investigation, it’s presumed that it simply didn’t find anything that it felt violated antitrust laws. California Governor Gavin Newsom said on Friday that he wasn’t surprised by the decision, stating that the “trumped-up charges were always a sham, a blatant attempt by the Trump administration to prevent more automakers from joining California and agreeing to stronger emissions standards.”

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Gas War: Antitrust Probe Opened Into Automakers Endorsing California Emissions Pact

The Justice Department has opened an antitrust probe into four automakers that formed a pact with California to compromise on tailpipe emissions, effectively circumventing federal regulators, last July.

Over the summer, Ford Motor Co., Honda Motor Co., BMW AG and Volkswagen Group announced a joint agreement with the California Air Resources Board to adhere to fueling standards slightly lower than Obama-era rules but still significantly higher than the Trump administration’s proposal from 2018. The Justice Department is seeking to determine whether or not that qualifies as a violation of federal competition laws.

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Ram Sets Price for 2020 EcoDiesel Pickups

Fresh off giving Chevy a good drubbing in the American sales race, Ram has announced pricing for its new batch of EcoDiesel half-ton pickup trucks.

We’ll save you a click and tell you above the fold that the cheapest way to get into a new Ram EcoDiesel is by way of two-wheel drive Tradesman wearing Quad Cab clothes. That truck stickers for $36,890 plus destination. There’s more to it than that, of course, so you’ll want to hit the jump to learn why Ram feels the need to offer not one but two different EcoDiesels in their showrooms at the same time.

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Four Automakers Make a Deal With California Regarding Vehicle Emissions

While we’ve dinged the media for erroneously reporting that automakers were unilaterally “backing” California in the fuel-economy fracas that’s currently taking place within American politics, it appears four of them actually are starting to choose a side. However, this again requires a bunch of clarification. Despite not adhering fully to the state’s ideal emissions scenario, Ford Motor Co., BMW Group, Volkswagen Group, and Honda Motor Co. released a joint announcement stating they have reached a voluntary agreement with the state of California to adopt compromised vehicle emissions rules.

Since there’s nothing binding in the joint agreement and automakers make (and break) promises all the time, the deal is largely meaningless. Doubly so, since the fuel-economy rollbacks have yet to be finalized. But this does illustrate how a handful of manufacturers are willing to accommodate others in order to get a nationwide solution. It also shows a softening of California’s previously ironclad environmental stance, which is much more interesting.

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  • Tassos Generally I prefer that exploited labor remain domestic like in the service and trade industries. Given the complex and global integration of supply chains and materials sourcing I accept that most manufacturing must be managed by foreign 'kapos'.
  • Lorenzo 1 million barrels is 42 million gallons. The country uses 368 million gallons a DAY. The reserve was set aside after Hurricane Sandy caused a gasoline shortage for emergency vehicles. The hurricane season starts on June 1 and is predicted to be active. Nice going.
  • Chuck Norton Toolguy- I have. It's hard on the knees...
  • EBFlex Welp the corpse is at it again. They think they can buy votes by selling off from the SPR. The best thing they could do to get votes is close the border and start deporting people. That would guarantee them a win in November. As of right now though, they are not doing that and Trump is rising in the polls every day.
  • Jalop1991 What is this "dealer" thing Ford speaks of?