Statewide Iowa (RI) — While many Iowans are frustrated by gasoline prices well above $4 per gallon, University of Iowa Professor Tyler Priest, who teaches a course on U.S. energy policy, says a larger problem is coming into focus.
Priest notes that diesel fuel has much different applications and is used in long-haul trucking, marine shipping, agriculture and industry. AAA says diesel is averaging $5.36 per gallon in Iowa — more than $2 higher than this time last year.
Priest says another critical fuel, liquefied natural gas (LNG), is also going to be in shorter supply. After the initial U.S. attack on Iran, Iran retaliated against other nations, including Qatar, a major producer of LNG.
Reports this week show 17% of Qatar’s LNG export capacity was knocked out, and repairs may take three to five years. Losses are projected at $20 billion per year for Qatar.
Back in Iowa, six in ten homes use natural gas for heating, and many aspects of the agricultural industry rely on the fuel.
Farmers are also paying more for diesel to run tractors and other machinery during the planting season.
Priest’s primary research interests include the history of oil, energy, energy policy, globalization, and business. His latest book, “Offshore Oildom,” examines the political significance and controversies over U.S. offshore oil and gas extraction.
KIWA Staff Photo
