
Off-road diesel plays a vital role in powering industries such as agriculture, construction, and mining. In Duncan, Oklahoma, the availability of off-road diesel is essential for daily operations. However, rising demand, supply chain disruptions, and reduced refining capacity have made it increasingly difficult for these industries to access the fuel they need, affecting productivity and increasing costs.
What is Off-Road Diesel?
Off-road diesel, commonly known as "red diesel," is similar to on-road diesel but is dyed red and not subject to road taxes. It's used primarily for vehicles and machinery that don’t operate on public highways, such as tractors and construction equipment. For industries in Duncan, off-road diesel offers a more affordable fuel source, making it critical for efficient operations. Unfortunately, the recent shortage has created significant challenges for these sectors.
Why is There a Diesel Shortage?
The U.S. is currently facing a diesel shortage, hitting rural and industrial regions hard. Several key factors have contributed to this:
Reduced Refining Capacity: During the pandemic, many traditional refineries shut down or shifted to biofuel production, reducing overall diesel output. While refinery utilization has rebounded, about 5% of refining capacity remains offline, creating a gap in supply.
High Global Demand: As economies recover from the pandemic, the demand for diesel—especially in agriculture and logistics—has surged globally, straining inventories in key regions like the U.S. Midwest.
Transportation Bottlenecks: Moving diesel from distant refineries to rural regions like Duncan adds logistical challenges. Delays in transportation infrastructure can lead to local shortages, further driving up costs.
Impact on Duncan and Rural Oklahoma
In Duncan, where farming and industrial operations rely on off-road diesel, the shortage has led to higher fuel prices and operational delays. Farmers depend on this fuel for everything from planting and harvesting to irrigation and transportation. When diesel is hard to come by, costs increase, cutting into profit margins and disrupting workflows.
With prices soaring above $5 per gallon in 2023, many farmers were forced to either delay work or absorb the added expenses, putting a strain on their already thin margins. Construction companies and other industries are facing similar challenges, as rising fuel costs impact project timelines and budgets.
How Clean Refineries is Addressing the Diesel Shortage
Clean Refineries is actively working to combat the off-road diesel shortage by providing localized, sustainable hydrocarbon processing solutions. Here's how we are making a difference:
Increasing Local Capacity: One of the biggest challenges rural regions face is their reliance on diesel from distant traditional refineries. Clean Refineries is increasing localized processing capacity in Oklahoma and Texas, bringing production closer to where it's needed most. This helps stabilize supply chains and reduces the cost and time associated with transporting fuel.
Sustainable Technology: Our hydrocarbon processing facilities use cutting-edge, net-zero emissions technology, which allows us to produce diesel while significantly reducing environmental impact. This dual focus on sustainability and efficiency means that industries can continue to operate without contributing to the environmental challenges associated with traditional refining.
Flexibility in Production: Clean Refineries’ facilities are designed to be flexible, allowing us to ramp up diesel production when demand spikes. This flexibility ensures that industries like agriculture and construction, which depend heavily on off-road diesel, always have a reliable supply to keep operations running smoothly.
A More Stable Future for Diesel Supply
The off-road diesel shortage has highlighted the importance of resilient, locally focused fuel production. Clean Refineries is committed to ensuring that industries in Duncan and beyond have access to a steady supply of affordable, sustainably produced diesel. Our localized approach, combined with our net-zero emissions technology, offers a long-term solution to the vulnerabilities exposed by recent shortages.
By increasing processing capacity, addressing transportation bottlenecks, and focusing on sustainability, Clean Refineries is helping secure the energy future for Oklahoma’s critical industries. Whether powering a tractor on a farm or machinery on a construction site, Clean Refineries is committed to making off-road diesel shortages a thing of the past.
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