July 5, 2022

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"Diesel", economy in danger |  All over the world

“Diesel”, economy in danger | All over the world

Author: Noah Ali

Pollution to the environment is a trait that has always been associated with it, but in turn it is essential to the world economy because it pushes the soul into the arteries of the economy. This is because everything that comes in and out of the factories uses diesel.

Therefore, diesel fuel, even with its polluting specifications, has earned its unique place among other energy sources.

In the first week of Russian military action, European diesel prices were at a thirty-year high, with no severe restrictions on diesel fuel from Russia.

In addition to the decline in the investment of international financial institutions in Wall Street and oil and gas companies, the reasons for the closure due to the epidemic can be traced back to March 2020.

Despite the global shutdown of industry and transport in March 2020, demand and supply of diesel fuel remained in balance. But with the sudden closure, demand for diesel in trucks, cars, construction and agriculture fell.

Non-profit refineries were also closed along with reduced capacity levels.

Today, diesel stocks around the world are dangerously low, especially in the European Union, which is the world’s largest diesel consumer.

Prior to the war in Ukraine, Russia supplied 60% to 70% of the total diesel for the European Union because demand for diesel in the EU was higher than in the United States.

While 76% of car engines in France use diesel, this also applies to 50% of European car engines.

Before the war and early February, diesel stocks in the United States, for example, were 21% lower than the seasonal average before the Corona outbreak, while in the EU they were 8% lower, while that was the case for Asia, and at the beginning of the Ukrainian crisis, stocks global diesel fuel 2008 Very low after.

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On the first day of the Russian military operation, some European giants, such as British Petroleum and Shell, cut off diesel supplies to Germany for fear of shortages.

Turning to refining methods, each type of crude oil is different from another, so refineries are designed based on this, in order to achieve maximum benefits by treating a specific type of oil.

In order to replace Russian oil from these refineries, it would be necessary to look for alternatives with similar characteristics, so it would be a big problem to move away from Russian oil and offer alternatives from oil derivatives.

In a country like Germany, it is difficult to transport these items to refineries in East Germany, where it can be difficult to handle the quantities to be transported.

The largest train car with crude oil typically carries the equivalent of 630 barrels of oil, and even if these cars were lined up one after the other, their number would have to extend its length to cover the full range to deliver the required cargo. Between the cities of Berlin and Hamburg, it is 150 miles or 240 kilometers.