Diesel Shortage Equals Profits?
 

Recent news reports seem to indicate we may fast be approaching a diesel fuel shortage. This got me to thinking.

First, I would think that if goods cannot be delivered that RIGHT NOW would be a good time to stock up on anything that you normally buy. If goods cannot be delivered to Walmart, where are alternatives?

Local farmers might have some stuff.

Also think about the fact that restaurants won't be able to get food either.

Does this sound like what happened 2 years ago?

What was in shortage at that time? What did people want?

Can you provide it?

If trucks actually stop moving does the country stop too?

Remember that trains run on diesel too. Not to mention a rail strike possible added into the mix.

What can business thinkers do about this?

The oil issue and its follow-on effects!
 

Hi Millard,

Oil's on everyone's mind nowadays... Especially when you go to fill up your car and get a "heart attack" at seeing the price!

The way I see it, it means that the price of everything will go up ... that is, inflation...

What are the causes of inflation at the moment?

Here's my two cents worth...

1. The War in Ukraine, and the accompanying sanctions on Russia.

Russia is the world's second largest oil producer...

Number one is the USA (no kidding!).
Number two is Russia.
Number three is Saudi Arabia.

How is it that the USA is number one in oil production?

It's because of the "shale oil revolution"...

The USA has a heck of a lot of shale oil...

However, it's more expensive to extract than other types of oil.

2. The effect of Covid, and continuing effects of Covid, on manufacturing (especially in China), and on supply chains.

The lack of supply of anything usually means that prices goes up.

China is still having draconian "lockdowns" due to Covid, and shuttering their factories.

There are cases of people literally starving in China from being locked up in their apartments, because in a Covid lockdown, they're not allowed to go out to get food...

Many think that the "real" reason is so that the Communist Party can have strong control over the Chinese population. Covid is a handy excuse...

Another reason is because apparently the Chinese vaccines don't work so well. So if they "open up," Covid will kill possibly millions.

And they don't want to "shame" themselves by buying newer Western (mRNA) vaccines that work much better. That would look "bad."

3. Demographics.

Boomers are retiring, and they're a big chunk of the population.

That means it's harder to find enough people to fill the jobs - hence the low unemployment rate.

That means that companies have to raise wages to attract new workers.

The higher wages means that they have to raise their prices to cover the higher expenses...

Anyway, the way I see it, we won't run out of oil - well, at least not in the USA. (Might be different in other places.)

But everything just gets more expensive...

Which means that people need more money...

So if you know how to make more money, there should be a demand for that knowledge... :)

Best wishes,

Dien