Interesting read RE Diesel!

[Penguin]

Originally Posted by JGQ

. Higher cost of diesel will deter their interest in the product and lesson the popularity of that option.

That is correct.

Unfortunately, the price of most everything is set by supply and demand. In the old days decades ago before modern, cost-effective cracking technology, it was more difficult to get more gasoline out of a barrel of oil. As a result, there was an ecess supply of diesel and other heavier components when the gasoline supply was met. But nowadays with the ability of refiners to get more gasoline out of a barrel of oil, and many refineries having set themselves up for increased gasoline vs. diesel, the tables have turned. With the cheap dollar and lots of diesel demand outside the U.S., the price of diesel has risen, since export markets are competing for it. And if the high price of gasoline causes people to drive less, it will exacerbate the problem since the major users of diesel have less flexibility in reducing their usage due to high cost, making the ratio of gasoline to diesel even more in favor of diesel.

And, as noted by others, the change in regulations in the past couple of years to reduce sulfur content has also increased the cost of diesel production.

I guess my point is simply that (A) I don't really see any conspiracy to stop diesels from becoming popular in the U.S., as the oil companies and auto companies can makes just as much, if not more, money selling diesels as gasoline, and (B) there's nothing unusual about diesel rising in price more than gasoline when demand allows the producers to charge more. As the ferilizer salesmen are saying to the farmers, if you don't want to buy it at this price we have plenty of people overseas that will.

[Craig]

Yes, I was talking about heating oil #2, not #4. I've never heard of #4 heating oil around here. We also have diesel here that farmers use that doesn't have the road taxes built into the price. I'm not sure if it's low sulphur or not...

Craig

[motordavid]

this topic has been hammered pretty well in previous threads...
some points, fwiw, from my eroding memory:
-China, India, et al, are huge consumers of diesel/heating oil.
-Europa is huge consumer for diesel, an occasional exporter of
gasoline...
-the diesel/heating oil "cut" from a bbl is "X", and less than
gasoline yield.
-the refiners are in biz: why not make money on your product(s),
based upon supply & demand?

Diesel's road tax is a hit, but the gov't isn't/won't reduce it; the
tax goes to DOT/road fund; maybe one of the bigger bureaucratic
messes in the US.

Search "diesel": a dozen different & good threads.

A graphic of uasge/yield from a bbl of Oil:



BR,mD