$7.00 gallon diesel??

[5030]

jimg:

I'd be willing to wager that taxes on diesel fuel are probably 75% of the total cost per gallon.

A good example of taxes here in Michigan is the solid fuel tax that was added this year on processed wood pellets for pellet stoves. 6% of the cost of a bag of pellet fuel was added to the final cost as a "solid fuel tax". What hogwash. /forums/images/graemlins/mad.gif

I wonder if they (the state) will try that on corn next year.

 

[Sully2]

The whole "argument" is easily settled...

Someone tell me the very BASICS of how OUR economy COULD exist with $7 a gallon diesel fuel? AND...how will all the country that we prop up out outright support continue to exist? When we go in the toliet..becuase we..the US of A...is the largest consumer of almst everything there is to be consumed...we drag every country in the world down with us.

FDR said it best guys..."The only thing we have to fear..is fear itself".

 

[cowboydoc]

I also doubt that we could survive $7/gallon diesel. Well we could survive but it would not be the same US. There would rampant inflation. Things would be similiar to the late 70's. Unemployment would skyrocket, interest rates would soar back to the 20% range. I cannot imagine that any administration would allow that to happen. With all of the perils that unemployment and high interest rates would bring mfg. and importation of goods, like China being fueled by our consumption, would also cease. We would see worldwide depression similiar to that in the 30's and 40's.

What the one poster fails to recognize on $7/gallon fuel in England is taht is ONLY for cars. Trucking, home fuel, etc. does not pay those taxes. Also vehicles are not used like they are here. Things are close quartered and people don't drive far.

The next thing that people fail to realize is that above $3/gallon alternate fuels become extremely viable. Biodiesel, ethanol, etc. would all of the sudden be significantly cheaper than fossil fuels. You would also see significant changes in technology to maximize fossil fuel use and also to change to alternate energy sources. Now there would be SIGNIFICANT $$$ reasons to pursue these other fuels. I cannot imagine that OPEC and the rest of the cartels are that shortsighted to shoot themselves in the foot and basically force the world to discontinue use of fossil fuels.

 

[Builder]

Yep, you took the words out of my mouth-By the time diesel hits $4-5/gallon, it will finally become economically viable to start producing bio-diesel en-mass to stabilize fuel prices and finally get us unaddicted from these creeps that have us so dependent on their oil. Frankly, I'm sick of big oil and nothing would please me more than to see new companies start bio-diesel plants and put these arrogant, monopolistic thugs out of business.

Might be the best thing that ever happened to us.

Crude dropped last week, yet pump prices increased. Big oil posted record quarterlies for several quarters in a row. WHY? Oh, like we're gonna buy the excuse that it's already "summer driving season"

rrrriiiiight...... /forums/images/graemlins/smirk.gif

I think the more immdiate problem that will affect me is the 2007 regs on diesel trucks. I have diesel trucks and I don't like the prospect of paying at least 3 grand more just to have a diesel engine that's more complicated than an '06 diesel engine!

I'm all for clean air, but if I and many others can't afford to buy a truck to stay in business, then what good is it?

 

[Clyde]

It's a nice tidy profit for the oil companies to drill offshore the coast of Louisiana and Texas and then almost pump the crude directly to their refineries onshore. No transportation fees half way around the world for them. The price they pay for bidding on these sights is way too low. I would say the government should triple the opening bid but you and I will never see the benefits. They broke up the Bell System in 1984 as a monopoly but it is nothing compared to the grip the oil companies have on us now. The Bell System is slowly being put back together and no one seems to care about that anymore. Iran, Iraq, Saudi, and Russia aren't the enemy as far as oil. The more we want from their oil fields makes them think they have us by the gonads. Not so and with a little thought, we are controlled by our own government. Trying to figure out their ulterior motive is what has me stumped. I usually am not an antagonist or pessimist but right now, the taxes we pay on fuel are way too exhorbitant. The government could care less about emission standards but it gives the manufacturers another reason to jack up the prices. Ethanol isn't the answer either. Their new blend of ethanol 85 is a joke. We have an ethanol refinery right here and the 85 blend started out $.50 less than regular. Within a 6 month period, it is now less than $.25 cents. We have piles of corn laying on the bare ground yet in March. Shortage - I don't think so. I could care less about what a president did with a cigar. I'm worried about what anything the government does or has done so far with that cigar to me. Iraq is costing us 2 1/2 million dollars per day and that is without dropping any major armament from an F17. That excludes the Humvees and tanks that are over there already and all of the other infrastructure. No - I don't endorse pulling out now as we did in Nam. I served 14 months there as a Navy Corpsman and that battle was a slap in the face to any man wounded or killed while there.

I had no intention of getting off on a tirade about items we, as civilians aren't privvy to. I think I smell a real bad stench in the air of fecal matter fed to us like we are idiots.

Just a few thoughts to ponder overnight guys - Clyde

 

[deereman64]

Sorry I should have made my self cleaer. The point I was trying to get over with the high percentage of tx was that the demand for diesel is inelastic to the price. There are very few subsitutes for diesel. Its demand is huge world wide at the moment, just dont look at the absolute price the more significant fact is its price relative to gasoline.The traditional relationship has inverted.with diesel now being more expensive than regular gas. Demand is heavy in china, europe and the US. There is no other fuel that can deliver so much power.

It also demonstrates the changing economic realtionshipsin the world. Dont fall into the trap that post war Britain did that somehow the world owes something. , but now im geting political sorry

 

[texbaylea]

Don't ignore that a large part of the run up in fuel prices is due to the lack of refining capacity. Everybody wants to use more and have cheaper fuel but nobody wants a new refinery within their view or those unsightly oil wells of their coast. Let Texas and Louisana have all that mess - not us!

The next time some "greene" spouts of at me because I dive a Suburban (I don't fit in any thing else) they are really going to hear it.

Vernon

 

[CarlGlas]

</font><font color="blue" class="small">( jimg:

I'd be willing to wager that taxes on diesel fuel are probably 75% of the total cost per gallon.

A good example of taxes here in Michigan is the solid fuel tax that was added this year on processed wood pellets for pellet stoves. 6% of the cost of a bag of pellet fuel was added to the final cost as a "solid fuel tax". What hogwash. /forums/images/graemlins/mad.gif

I wonder if they (the state) will try that on corn next year. )</font>



State Motor Fuel Excise Tax Rates

Gasoline and Diesel Fuel Update

 

[Sully2]

</font><font color="blue" class="small">(

The next thing that people fail to realize is that above $3/gallon alternate fuels become extremely viable. Biodiesel, ethanol, etc. would all of the sudden be significantly cheaper than fossil fuels. You would also see significant changes in technology to maximize fossil fuel use and also to change to alternate energy sources. Now there would be SIGNIFICANT $$$ reasons to pursue these other fuels. I cannot imagine that OPEC and the rest of the cartels are that shortsighted to shoot themselves in the foot and basically force the world to discontinue use of fossil fuels. )</font>

I recently saw a "special" on TV where a COAL MINE in ( PA I think it was??) is producing DIESEL fuel from coal. I dont remember the process it goes thru...but at $3 a gallon retail they can make aprofit from it. Seems their coal is too ( ??) anyway..as "coal" its too "nasty" to burn ( causes too many problems in emissions)...but this mine had already contracted with the state to produce 100,000 BARRELS of oil a year. And that was just ONE coal mine.

The US seems to have the lions share of COAL in the WORLD....but it wasnt worth converting to anything but "pollution"... /forums/images/graemlins/grin.gif...at the retail prices that we have had in the past.

 

[Builder]

I think you're referring to "shale oil"-yeah, there's so much of it.

Drastic times call for drastic measures. We oughta start thinking about more nuke power plants, too.

I really would like to see a new energy policy for this country and a concerted effort to refine biodiesel to the point that it will reduce a significant amount of foreign oil dependence.