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Our Spring Manufacturing & Policy Conference is scheduled for this Thursday in Dover, and undoubtedly, increased energy costs will be a topic of discussion. Manufacturers are substantial energy users, so when supply lines are disrupted, it’s quite possible the “knock-on” effects will touch their operations as well. The same can be said, more immediately, for our members who have fleet service vehicles out in the field on a regular basis. This would include parcel delivery services of every kind; technical, installation, or repair service providers, such as HVAC businesses; transportation companies that deliver food, cargo, or even people via shared ride services, school buses, or transit providers like trains; and so on. The list of fossil-fuel-dependent businesses is very long.
All of this will create price pressure on most Delaware businesses and their employees. While the U.S. is a net exporter of refined fuels, we are among the few countries in that position. About 20% of the crude oil made available for daily export to the world market comes from the Persian Gulf States and transits through the Strait of Hormuz. The most common refined products made from crude oil are transportation fuels, with gasoline accounting for the largest share at 43% of a barrel. Diesel fuel accounts for approximately 27%, followed by jet fuel, heating oil, asphalt, lubricants, waxes, and petrochemical feedstocks. As world events unfold, we will continue to monitor the costs, implications, and challenges affecting Delaware businesses.
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