We need more diesel fuel production


[Follow Ups] [Post Followup] [Dodge Power Wagon Forum]


Posted by Don in Missouri [24.217.215.52] on Friday, January 16, 2015 at 16:41:35 :

In Reply to: Liquid fuels will remain dominant posted by Don in Missouri [24.217.215.52] on Friday, January 16, 2015 at 16:22:50 :

Have you noticed that diesel prices haven't dropped as much as gas prices? Both have gone down, because the Saudis are trying to run our domestic production out of business, but diesel has been $1/gallon more than gasoline in my area.

Here's why: Gasoline is down because of more efficient cars, fewer miles traveled and ethanol displacing 14 billion gallons of gasoline. Less demand. More supply.

Diesel demand is strong, because diesel fuels heavy duty industry, we have more light duty diesels on the road, and we export diesel to other countries. Refineries are operating to meet diesel demand. They get 19 gallons of gasoline for every 12 gallons of diesel fuel(out of a barrel of crude). They are oversupplying the gasoline market. They are not making any profit on the gasoline. They have to make up that loss on the diesel side. If you buy diesel fuel, you are paying part of the production cost for someone else's gasoline.





Follow Ups:



Post a Followup

Name:
E-Mail:
Subject:
Message:
Optional Link
URL:
Title:
Optional Image Link
URL:


This board is powered by the Mr. Fong Device from Cyberarmy.com