Thread by @mercoglianos

1/While @johnkonrad is focusing on the @USNavy, let me direct the issue to the @DeptofDefense & @USDOT. Right now we are seeing falling supplies of diesel in New England & Mid-Atlantic.

Prices for gas and diesel have spiked since the #RussiaUkraineWar...

https://twitter.com/johnkonrad/status/1524720234585808896

2/Sanctions against Russian petroleum, means than crude oil and diesel imported in the US is down.

The issue that should pop into everyone's mind is why are we importing any POL from Russia in the first place?

gcaptain.com/united-states-…

3/The answer lies in the fact that we have not built a new oil refinery in the US since the 1970s...

nytimes.com/2005/05/09/bus…

4/ This is why the US finds itself in the position of exporting and importing oil at the same time.

Much of the fracking oil cannot be refined in our current refineries, and we lack the requisite oil to refine.

We are literally shipping oil in and out.

5/This brings us to the case for @DeptofDefense and @USDOT. Numerous studies have shown that in time of war, the US lacks the requite number of tankers to support the @MSCSealift fleet of oilers for the @USNavy and land-based DOD assets.

@CSBA_
csbaonline.org/research/publi…

6/Oil companies and brokers have been shifting cargoes toward Europe to fill the shortfall but also net the higher rates. This includes depleting stocks in the New England
and mid-Atlantic region.
gcaptain.com/new-york-diese…

7/The latest figures from the @EIAgov show stocks dipping below the 5-year average, with the most pronounced drop in PADD1.

This drop, caused by lack of refineries, shift to fracking, the #UkraineRussiaWar & increase demand will now become the focus of the anti #JonesAct lobby.

8/The Merchant Marine Act of 1920, or the #JonesAct was the nation's first maritime strategy that stated the US shall have a merchant marine for both commerical commerce and serve as a military auxiliary.

9/Much like they did when @Colpipe experienced their shutdown due to a ransomware attack, the large oil companies and their lobbyists will scream for a waiver of Sec 27 of the #JonesAct.

10/As before, the need for a waiver is both wrong but endangers national security.

First, the issue was not caused by the requirement to ship cargo between US ports on US-flagged, owned, built & crewed ships; which is the relevant section of the MMA 1920.
seahistory.org/wp-content/upl…

11/Second, unlike what the oil companies and their lobbyists will say, there are available US tankers to move diesel from the Gulf of Mexico to the East Coast.

Just ask $OSG and @CrowleyMaritime.

Third, rates for US tankers are less, perhaps $65k/day versus $85 for foreign.

12/Fourth the charter costs to haul diesel from the Gulf of Mexico to East Coast is a short duration charter (a few days) vice weeks for trans-ocean. Tankers are only paid when they have cargo onboard, so they have to make money while hauling.

freightwaves.com/news/the-world…

13/Signing a waiver to allow foreign-flag tankers to haul fuel between US ports jeopardize the the US-flag fleet.

With the closing of the #RedHill fuel facility in Hawai'i , @INDOPACOM ability to support operations across the Pacific is jeopardiazed.

14/This closure and issues with the size and composition of the @USNavy battle force, along with the limited number of underway replenishment ships available from @MSCSealift, means the reliance on commercial US tankers is increasing.

dvidshub.net/news/398973/ms…

15/The @DeptofDefense, @SecDef, @SECNAV,@USNavyCNO, @US_TRANSCOM, @SecretaryPete & @DOTMARAD should not only be stalwart against any waivers of the #JonesAct, but be advocates for the building and construction of new ships for the US merchant marine.

16/Attacks on the US merchant marine, which is what the oil companies and their lobbyists are preparing to do, has a direct impact on the nation's national security, both overseas and domestic. There needs to be reform of US maritime legislation.

17/Too long, @POTUS, the US Congress, the @DeptofDefense and @USDOT have ignored and allowed the US merchant marine and maritime sector to decline to the detriment of US shipbuilding base and @USNavy.

What is needed is ACTA NON VERBA, or else...

.@threadreaderapp

Unroll

Not sure why the link did not work, but here it is.

csbaonline.org/research/publi…

Diesel, US Tankers and the Jones: How US Jones Act Tankers relate to Diesel shortage in Northeast