News  Agriculture  Energy

Southwest Energy Plans Highlight Farm Fuel Supply Risk

For producers, the issue is diesel, freight, irrigation fuel, and input delivery.

May 31, 2026 12:00 PM • 
Tony St. James
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FarmHER, Inc.

LUBBOCK, TX (RFD NEWS) — Southwest fuel supply remains a concern for agriculture as federal officials consider more oil and gas leasing in Arizona and Nevada. According to OPIS, the proposals come as both states rely heavily on outside fuel supply, leaving farms, ranches, and rural businesses exposed to regional price and logistics swings.

The Bureau of Land Management (BLM) is taking public input through June 11 on 40 Arizona parcels totaling 78,708 acres for a possible December 2026 lease sale. The agency is also reviewing 14 Nevada parcels totaling 20,600 acres for a September 2026 sale.

The lease proposals are not expected to change farm fuel costs quickly. Limited regional refining capacity means any production would still need to move through broader fuel markets.

A bigger near-term development is pipeline access. Kinder Morgan and Phillips 66 say their Western Gateway project has advanced after securing enough shipper commitments, with service targeted for mid-2029.

For producers, the issue is diesel, freight, irrigation fuel, and input delivery.

Farm-Level Takeaway: Southwest producers may not see immediate relief, but regional fuel access remains important to farm and ranch costs.
Tony St. James RFD News Markets Specialist
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Tony St. James
Tony St. James
Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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