{"id":468669,"date":"2026-09-06T05:13:36","date_gmt":"2026-09-06T12:13:36","guid":{"rendered":"https:\/\/climatescience.press\/?p=468669"},"modified":"2026-09-06T05:13:38","modified_gmt":"2026-09-06T12:13:38","slug":"climate-regulations-crushed-western-oil-refineries-now-goldman-sachs-predicts-a-diesel-crisis","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=468669","title":{"rendered":"Climate Regulations Crushed Western Oil Refineries. Now Goldman Sachs Predicts a Diesel Crisis"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Essay by<\/strong> Eric Worrall<\/a><\/p>\n\n\n\n

\u201c\u2026 EU climate regulations forced energy companies to shut down refining capacity in anticipation of demand destruction that has yet to materialize. \u2026\u201d<\/p>\n\n\n\n

\n

Goldman Sachs Sees Diesel Refining Margins Soaring to $63 a Barrel<\/h3>\n\n\n\n

By Irina Slav<\/a> \u2013 Aug 31, 2026, 1:45 AM CDT<\/p>\n\n\n\n

Refiners are set to reap stronger profits on the global diesel shortage, Goldman Sachs has said, revising its earlier profit forecast to double the total profits that refining companies would make from the squeeze.<\/p>\n<\/blockquote>\n\n\n\n

\n

\u201cRising strikes on refineries in the Middle East and Russia have further constrained already-stretched global refining capacity, pushing refined-products margins to new highs,\u201d the bank\u2019s analysts wrote in a note, as quoted<\/a> by Bloomberg. \u201cDiesel remains at the epicenter of the rally,\u201d they added<\/p>\n\n\n\n

Global diesel stocks are running low due to refinery damage in the Middle East and Russia. According to Goldman\u2019s commodity team, refinery outages are currently 60% higher than the seasonal average, and the tightness in diesel will extend into next year.<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

In Europe, the situation is additionally complicated by a shortage of refineries, as EU climate regulations forced energy companies to shut down refining capacity in anticipation of demand destruction that has yet to materialize.<\/strong>

\u2026Read more: https:\/\/oilprice.com\/La<\/a>t<\/a>est-Energy-News\/World-News\/Goldman-Sachs-Sees-Diesel-Refining-Margins-Soaring-to-63-a-Barrel.html<\/a><\/p>\n<\/blockquote>\n\n\n\n

The Iran war and Ukraine conflict might have interrupted Western access to Middle Eastern and Russian refining capacity, but our lack of resilience to handle such an interruption, the lack of Western refinery capacity, is a self inflicted failure.<\/p>\n\n\n\n

Fuel shortages couldn\u2019t have come at a worse time. Diesel prices are strongly tied to food prices, or in the worst cases, food availability.<\/p>\n\n\n\n

A friend who runs a farm in NSW has told me that lots of people he knows cut back on planting because with elevated diesel and fertiliser prices, they couldn\u2019t see a path to making a profit. How many other farmers throughout the world are making similar choices?<\/p>\n\n\n\n

President Trump\u2019s efforts to revive the USA\u2019s fossil fuel industry may help to buffer the USA from the worst of the coming diesel supply shock, except in places like California which are still doing everything in their power to wreck their own economies with European style climate regulations. But Europe, whose economies are already stretched to the brink by the Ukraine war, skyrocketing government debt and crippling regulations on farming and industry, they could be in for some real hardship.<\/p>\n\n\n\n

Naturally all this will be blamed on the coming \u201csuper El-Nino\u201d \u2013 you can already see the green establishment laying the groundwork for a climate narrative interpretation of any Fall food shortages. But make no mistake, much of the increase in food prices which a spike in diesel prices could trigger will be because the irresponsible climate idiocy our politicians destroyed the economic viability of refining oil in Western countries.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201c\u2026 EU climate regulations forced energy companies to shut down refining capacity in anticipation of demand destruction that has yet to materialize. \u2026\u201d<\/p>\n

Fuel shortages couldn\u2019t have come at a worse time.<\/p>\n

Diesel prices are strongly tied to food prices, or in the worst cases, food availability.<\/p>\n","protected":false},"author":121246920,"featured_media":468674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"\u201c\u2026 EU climate regulations forced energy companies to shut down refining capacity in anticipation of demand destruction that has yet to materialize. ...\"\n\nFuel shortages couldn't have come at a worse time.\n\nDiesel prices are strongly tied to food prices, or in the worst cases, food availability.","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691843589,691819287,691819642,691819443,691841777,691818154,691819148],"class_list":["post-468669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-diesel-fuel","tag-el-nino-2","tag-food-shortages","tag-goldman-sachs","tag-iran-war","tag-net-zero","tag-oil-and-gas","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1XVb","jetpack-related-posts":[{"id":431254,"url":"https:\/\/climatescience.press\/?p=431254","url_meta":{"origin":468669,"position":0},"title":"The Iran Oil Crisis + Australia\u2019s Failed Green Energy Policies are Collapsing our Farming and Fishing Industries","author":"uwe.roland.gross","date":"03\/14\/2026","format":false,"excerpt":"Australia faces a worsening fuel shortage due to the conflict in the Middle East. Regional businesses have started rationing fuel, while some towns, farmers and transport companies report they have been cut off completely.","rel":"","context":"In \"Agricultur\"","block_context":{"text":"Agricultur","link":"https:\/\/climatescience.press\/?tag=agricultur"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/0-War-in-the-Middle-East-already-making-Australias-fuel-struggles-the-toughest-in-decades.jpg?fit=784%2C1168&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/0-War-in-the-Middle-East-already-making-Australias-fuel-struggles-the-toughest-in-decades.jpg?fit=784%2C1168&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/0-War-in-the-Middle-East-already-making-Australias-fuel-struggles-the-toughest-in-decades.jpg?fit=784%2C1168&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/0-War-in-the-Middle-East-already-making-Australias-fuel-struggles-the-toughest-in-decades.jpg?fit=784%2C1168&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":463397,"url":"https:\/\/climatescience.press\/?p=463397","url_meta":{"origin":468669,"position":1},"title":"The Coming Fuel Crisis: What Ukraine and California Have in Common","author":"uwe.roland.gross","date":"08\/16\/2026","format":false,"excerpt":"Russian transportation fuel shortages are caused by Ukraine drone attacks, while California shortages are directly related to political over regulations Ukraine and California are using proven ways to reduce the supply chain of those vital fuels.","rel":"","context":"In \"California\"","block_context":{"text":"California","link":"https:\/\/climatescience.press\/?tag=california"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/08\/0-ChatGPT-The-Coming-Fuel-Crisis-What-Ukraine-and-California-Have-in-Common.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/08\/0-ChatGPT-The-Coming-Fuel-Crisis-What-Ukraine-and-California-Have-in-Common.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/08\/0-ChatGPT-The-Coming-Fuel-Crisis-What-Ukraine-and-California-Have-in-Common.png?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/08\/0-ChatGPT-The-Coming-Fuel-Crisis-What-Ukraine-and-California-Have-in-Common.png?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/08\/0-ChatGPT-The-Coming-Fuel-Crisis-What-Ukraine-and-California-Have-in-Common.png?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":430876,"url":"https:\/\/climatescience.press\/?p=430876","url_meta":{"origin":468669,"position":2},"title":"California\u2019s Looming Fuel Crisis: Refiners Are Trying to Warn the State","author":"uwe.roland.gross","date":"03\/13\/2026","format":false,"excerpt":"California is steadily dismantling the fuel infrastructure that keeps its economy running. At the same time, demand for that fuel remains enormous. That mismatch is now reaching a point where the companies actually producing the fuel are beginning to issue increasingly blunt warnings.","rel":"","context":"In \"California\"","block_context":{"text":"California","link":"https:\/\/climatescience.press\/?tag=california"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/California1.jpg?fit=1200%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/California1.jpg?fit=1200%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/California1.jpg?fit=1200%2C600&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/California1.jpg?fit=1200%2C600&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/California1.jpg?fit=1200%2C600&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":286252,"url":"https:\/\/climatescience.press\/?p=286252","url_meta":{"origin":468669,"position":3},"title":"California\u2019s EV conundrums","author":"uwe.roland.gross","date":"11\/02\/2023","format":false,"excerpt":"Without crude oil that is the basis for most of the products now in society, citizens of developing nations may never be able to enjoy the abundant lifestyles available to wealthier countries. From \u00a0CFACT Without crude oil that is the basis for most of the products now in society, citizens\u2026","rel":"","context":"In \"California\"","block_context":{"text":"California","link":"https:\/\/climatescience.press\/?tag=california"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-10-24T133737.116.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-10-24T133737.116.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-10-24T133737.116.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-10-24T133737.116.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":256678,"url":"https:\/\/climatescience.press\/?p=256678","url_meta":{"origin":468669,"position":4},"title":"UK Government is playing into Putin\u2019s hands","author":"uwe.roland.gross","date":"05\/09\/2023","format":false,"excerpt":"Net Zero Watch has warned that the Government\u2019s ban on fracking and its strangling of North Sea oil and gas investment is playing into Russian hands.","rel":"","context":"In \"fossil fuel\"","block_context":{"text":"fossil fuel","link":"https:\/\/climatescience.press\/?tag=fossil-fuel"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00Screenshot-2023-05-09-at-13.14.53.png?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00Screenshot-2023-05-09-at-13.14.53.png?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00Screenshot-2023-05-09-at-13.14.53.png?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00Screenshot-2023-05-09-at-13.14.53.png?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00Screenshot-2023-05-09-at-13.14.53.png?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":444222,"url":"https:\/\/climatescience.press\/?p=444222","url_meta":{"origin":468669,"position":5},"title":"The California Refinery Crisis is a National Security Risk for America","author":"uwe.roland.gross","date":"05\/14\/2026","format":false,"excerpt":"California's refinery situation represents a significant vulnerability that extends beyond state-level economics to broader U.S. energy security and military readiness. Energy security is national security, and California's situation highlights the risks of rapid unilateral shifts without reliable backups","rel":"","context":"In \"California\"","block_context":{"text":"California","link":"https:\/\/climatescience.press\/?tag=california"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-ChatGPT-The-California-Refinery-Crisis-is-a-National-Security-Risk-for-America.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-ChatGPT-The-California-Refinery-Crisis-is-a-National-Security-Risk-for-America.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-ChatGPT-The-California-Refinery-Crisis-is-a-National-Security-Risk-for-America.png?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-ChatGPT-The-California-Refinery-Crisis-is-a-National-Security-Risk-for-America.png?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-ChatGPT-The-California-Refinery-Crisis-is-a-National-Security-Risk-for-America.png?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/09\/0-Climate-Regulations-Crushed-Western-Oil-Refineries.-Now-Goldman-Sachs-Predicts-a-Diesel-Crisis.jpg?fit=1168%2C784&ssl=1","_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/468669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=468669"}],"version-history":[{"count":7,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/468669\/revisions"}],"predecessor-version":[{"id":468677,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/468669\/revisions\/468677"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/468674"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=468669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=468669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=468669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}