ULSD two ?

[DocDetonancour]

Is the cost of conversion to ULSD why we are paying 80 cents more than regular? Will 4. 50 stop driving to shows like May Maddness?/ thanks, Doc

 

[jgillott]

For what it's worth, my truck is essentially sitting (diesel here is $1. 03 more than gas). I towed with it this weekend, but other than that I haven't used it in the last three weeks and don't intend to unless absolutely necessary.

 

[HBarlow]

Is the cost of conversion to ULSD why we are paying 80 cents more than regular? Will 4. 50 stop driving to shows like May Maddness?/ thanks, Doc

I've read that fuel is usually higher during this time every year because this is the time when refineries shut down to change over from winter blends to summer. Reduced supply effects supply and demand and raises the price. Other temporary events occur at random or scheduled times.



Nope, I'm still going to May Madness. I will grumble about the cost of fuel like everyone else but I'm going and I plan to continue doing some traveling with my 5er. Maybe not as much but I'm not going to give up doing what I enjoy.

 

[BHolm]

Sure has changed my driving habits On the main hwy around here the speed limit is 60. I used to run 65-68 and have fun passing slower traffic listening to the straight piped Cummins blast out its tune. Lately I have ben setting the cruise at 61-62 to keep the rpms just under 2000 so I can save on fuel. I have turned my power adder to the lowest setting in hopes of a little better economy there. I also just plain have been driving less. I walked to the store three times this weekend when I normally would have driven.



I see a bunch of guys bailing out but I love my truck and plan to perservere. Hopefully it will come down some, 3. 97 here and just a week ago it was 3. 88. It is scary to see it go up so quickly.

 

[josh8811]

I think production cost is one reason and another is simply price gouging. . The oil companies can charge whatever they want for diesel and it will still be sold. . the economy will absorb the cost through rises in shipping cost. .

 

[HBarlow]

+++++++Original post written by Schrowang copied and reposted here++++++



"What's In A Barrel Of Oil?



I did some on-line research about what's in a barrel (BBL) of oil. I came up with the following.



A standard barrel of light sweet crude is exactly 42 gallons. During the refining process, with the addition of other petroleum distilates, that goes up to 48. 43 gallons. Here's the best breakdown that I could get:



51. 4% or 24. 9 gallons for gasoline

15. 3% or 7. 4 gallons for fuel oil

12. 3% or 6. 0 gallons for jet fuel

21. 0% or 10. 13 gallons for other petroleum products.



I'd guess that those figures are an average among the oil producers and the given times of the year.



But think about the demand for the 7. 4 gallons of fuel oil that our #2 diesel comes from. All the homes and businesses in the U. S. A. that are heating with oil; all the commercial diesel trucks and buses on the road; every diesel locomotive on every railroad and finally, us. Basically its the old law of supply and demand. Demand High & Supply Low = High Prices at the pump.



And don't think that all those commercial users are paying what we pay at the pump. They all buy in bulk and get far better rates than we do.



Here's some thoughts on why the cost of a BBL of oil is so high. I think that some factors include, the very high U. S. debt overseas (weak dollar), greed (oh yeah, OPEC has to get it's pound of flesh), fear (just watch what happens to the cost of BBL when a refinery fire happens, or a hurricane even threatens) and again, high demand for that BBL of oil. India and China are direct competitors for the same BBL of oil that we go after. All that dickering and bargaining drives the price up.



If you really want a rant, here's one from me.



I think that the French sit over there in Europe and laugh down their noses at us. 80% of their electrical power grid is supplied by nuclear energy. Yet we sit here and allow our elected politicians to be guided by a group of ecological idiots that wouldn't have the brains to pour sand out of a boot if the instructions were written on the heel.



Do you think for one minute that if Germany, France, England, China or India owned Alaska and the ANWR that they wouldn't be up there right now drilling for that oil and using it for their own country. But, the tree huggers and bunny lovers in the country have got our politicians scared stiff to even suggest tapping that vast reserve of oil.



Cuba is selling drilling rights to the Chinese to drill for oil in the Gulf of Mexico. Again the EcoIdiots have that blocked too.



When the hell is this going to stop. I'll tell you when. We have an election comming up in 2008. Start writing letters to those congressmen and senators that are up for election. Tell them that you are damn sick and tired of taking crap from the Enviroterrorists and you want them to pass a sensible energy policy for this country that the average American can live with. Do it or we won't vote for you. "



++++++Original post written by Schrowang copied and reposted here. ++++++

 

[jgillott]

I think production cost is one reason and another is simply price gouging. . The oil companies can charge whatever they want for diesel and it will still be sold. . the economy will absorb the cost through rises in shipping cost. .

I think you have a very good point here. The only thing I will add is, there has to be a point where the economy can't continue to absorb the increase. Already, I have already had to personally cut back on other purchases just to be able to handle the increased cost of having to heat our home this year (oil heat) along with the cost of fuel for the truck, our tractors etc. As more and more people have to start to do that, it will have continued effect on the overall economy.

 

[Loren]

The oil companies can charge whatever they want for diesel and it will still be sold.

If oil companies could charge whatever they want for fuel, why would the price ever go down. Why isn't it $15. 00 a gallon now?



If politicians could control the price of fuel, why would it ever go up? Why isn't it $0. 30 a gallon?

 

[AMink]

Just remember that every time the price of a barrel goes up on the futures market, the price of fuel and gas goes up immediately. When it drops, they tell you that they paid the higher price for the fuel in the tanks, so the price won't drop until that fuel is gone. The lag time for oil up is immediate; the lag time for oil down is sssslllloooowwww! We're under $100 per barrel and the price is still going up!

 

[DocDetonancour]

All are well made points. Every mag I read on the issue points to diesel powered cars and Suv's as a answer. I can't see anyone buying a diesel and paying the extra bucks for the fuel, not to mention the engine. Is anyone buying diesels now, other that for towing? Doc

 

[HBarlow]

If oil companies could charge whatever they want for fuel, why would the price ever go down. Why isn't it $15. 00 a gallon now?



If politicians could control the price of fuel, why would it ever go up? Why isn't it $0. 30 a gallon?

Great explanation!



Harvey

 

[pwr2tow]

If oil companies could charge whatever they want for fuel, why would the price ever go down. Why isn't it $15. 00 a gallon now?

If politicians could control the price of fuel, why would it ever go up? Why isn't it $0. 30 a gallon?

It's on the way to whatever price they can get away with right now but doing it slowly so joe consumer doesn't complain too much. Raise it 75 cents and then lower it 50 cents makes joe consumer think he's getting a bargain. Keep repeating as long as they can get away with it. They've been doing it for a couple years or more now.

Politicians have their hands in every lobbist pocket. Why would they keep fuel prices low as long as joe consumer doesn't do some thing about it.

 

[betterthanstock]

Here's a quote from a news article:



Before the cleaner diesel mandate, much of the diesel produced in the United States fell far short of European fuel specifications, which meant the fuel tended to stay in the United States, keeping stockpiles full and prices low.



Trade sources report an increase in the number of ultra-low sulfur cargoes loading to leave the United States.



Traders of cash oil products along the U. S. Gulf Coast's refinery row said that an increasing number of cargoes of the cleaner fuel are heading to Europe, where with blending it can adhere to the 10 ppm specification in the United Kingdom, Germany and Sweden, as well as to South America.



For example, at least six cargoes are booked this week, sources report, adding that is an increase from the average of one to two cargoes that are booked weekly to those destinations.



So we pay for ULSD twice, once to refine it, then to compete with the MUCH stronger EURO vs Dollar.



I wish they had left LSD available for another decade, like they did leaded fuel.