Could Renewable Diesel Crush Oil Demand?

[Meredith Poor + 897]

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In the report, Verleger noted that weekly EIA data on distillate consumption in the U.S., which is about 90% diesel, has been running anywhere from 400,000 to 600,000 barrels per day less than pre-pandemic levels. While some analysts are looking at that and concluding it is the function of a slow trucking market, Verleger’s report cited the fact that the data isn’t capturing the consumption of renewable diesel.

This is another example of "Before you find the answer find the question".

The article quoted above goes on to discuss diesel being made from plant oils and restaurant grease. As far as restaurant grease goes, this is laughable.

An increasing number of trucks are running on compressed natural gas, and locomotives are being fitted out with 'dual fuel' diesel and LNG. Buses, trucks, and cars have been using propane for decades. Then there are the purely electric buses, and increasingly either hybrid or pure electric heavy trucks. If NG is so cheap people are paying you to take it away, every reasonable effort is going to be made to convert or buy trucks that use it.

Then there is the 'gas to liquids' conversion of natural gas to anything from propane to diesel, and the 'air to fuels' that converts CO2 and water to diesel.

Seems like someone needs to drill into 'the rest of the story'.