The chances of a winter fuel crisis are heating up, and the Biden administration‘s hasty decision to ban Russian oil is partially to blame, one energy expert said.
“When we went into the war in Ukraine, we decided ‘no more Russian oil’ because we only buy 3% of oil from there … so no one paid attention,” Mark Wolfe told the Washington Examiner.
“Going into the winter, we’re seeing both high diesel prices, as well as potential shortages … so we have a lot to worry about here, and the prices are off the charts,” Wolfe, the executive director of the National Energy Assistance Directors Association, said on the Plugged In podcast.
AS GAS PRICES EASE, US NOW HAS TO DEAL WITH DIESEL CRISIS
Wolfe noted that the fuel supply that was cut off, mostly diesel and specialty oil, is vital to the Northeastern United States. States such as Maine, Vermont, and New Hampshire rely on this oil to heat their homes, and now “we’ve cut all that off.”
“We should not have gotten into this situation,” Wolfe said, blasting the administration for not seeing the crisis coming and calling the cuts “shortsighted.”
“You and I could see weeks ago that supplies were getting very tight. But I think because it was heating oil, it was still early,” he added.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
As prices go up and the markets tighten more, eventually, the refineries will be moved to produce more diesel and heating oil, Wolfe explained.
When asked where the administration can go from here in the short term to mitigate the crisis, he seemed unsure.
“I don’t see a lot of options that are easy to solve here because where will it come from?” he said.
Wolfe did offer some potential reprieves, including warmer weather and the slowing down of the economy.
If the winter turns out not to be as cold in the mid-Atlantic states, that will offer time for the industry to rebuild reserves, but “that’s not a way to plan,” he said.
“It’s totally nuts. … The diesel problem, I think, was completely foreseeable,” Wolfe added.
Still, there are concerns in the Northeast that were won’t be enough heating oil to last through the colder months. This is made worse by inflationary pressure, with intermediaries being reluctant to buy oil at such a high cost if prices could fall any day.
“That’s creating part of the supply [problem] too. And the cost of heating a home … is gonna be very, very expensive,” he said.
It’s not just homes either, he added. Small businesses, governments, and the trucking industry are all dependent on this fuel source.
While he understands that the sanctions were part of the effort to help Ukraine, and there is pain that comes with that, Wolfe said President Joe Biden needs to address the crisis for what it is.
“If we act as if it’s no big deal … I think the public is going to be angry,” he said.
Plugged In, hosted by former Federal Energy Regulatory Commission Chairman Neil Chatterjee and energy reporter Breanne Deppisch, brings on key players, from lawmakers to federal employees to industry experts, to keep our audience up to speed on the latest energy issues facing the country and the planet.
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