New Colorado and Canyon's being shipped daily.

[oliver1555]

Going from LSD to ULSD according to the article you posted cost 10 cents a gallon, but it jumped up over a dollar a gallon. Most of the money spent by oil companies was going from high suffer diesel to low sulfur diesel back in 2004. Hmmmmmmmm. Why is this. If you read the article it explains why diesel is higher. They export it and make more money. Diesel is and will always be cheaper to make than gasoline. Diesel is taxed higher by the U.S. Govt. If the oil companies stopped exporting it the cost would go down. We make plenty of diesel. There should be no time of the year that diesel costs more than gas. The only reason it does is the oil companies know that the world economy runs on diesel, and you have to pay what ever they ask for it.

From the article:
ULSD is a clean-burning diesel fuel that is defined by the Environmental Protection Agency to have a maximum sulfur content of 15 parts per million (ppm). It was gradually phased into the market between 2006 and 2010, replacing the on-highway diesel fuel, known as Low Sulfur Diesel (LSD), which can have as much as 500 ppm sulfur content. In 2010, on-highway diesel fuel was 100 percent ULSD. ULSD is required for use in model year 2007 and later vehicles, which are equipped with advanced emissions control systems.

There are enormous environmental benefits to ULSD, but there are also logistical challenges. Special care was required when transporting both types of diesel fuel during the transition. This included pipelines, bulk terminals and tankers. A batch of ULSD that has even slight contamination with LSD could lead to significant fines if the batch of ULSD exceeded a certain level. In addition, to produce ULSD the refining industry had to invest approximately $8 billion in infrastructure upgrades and the daily production costs for ULSD are higher than LSD, since the fuel requires more refining.

Hmmmmm... Since we were paying over $4 per gallon just a few short years ago and I just filled up for $2.39 the other night, I guess those evil oil companies must have decided to have me pay less?

 

[Btown]

The contaminated ULSD did not go to waste. It was just sold as LSD. Remember LSD has a maximum sulfur content of 500 ppm. All they had to do was rinse it the tankers and pipeline a couple times and things would be peachy. You still have not explained how a diesel is cheaper to refine costs more than gasoline in the vast majority of the country. The wholesale price of oil is down that is why they lowered the price. They do not have limitless storage. The amount of oil used in the USA is declining. The oil reserves are plentiful. Though diesel lasts many times longer than gasoline in storage. Trust me the oil companies would love for us to be paying 7-8 dollars a gallon. Bigger profits for them.

 

[MikePA]

Bigger profits for them.

Trust me, it depends on what they are paying for crude and how far consumption drops as a result of higher prices.

 

[oliver1555]

The contaminated ULSD did not go to waste. It was just sold as LSD. Remember LSD has a maximum sulfur content of 500 ppm. All they had to do was rinse it the tankers and pipeline a couple times and things would be peachy. You still have not explained how a diesel is cheaper to refine costs more than gasoline in the vast majority of the country. The wholesale price of oil is down that is why they lowered the price. They do not have limitless storage. The amount of oil used in the USA is declining. The oil reserves are plentiful. Though diesel lasts many times longer than gasoline in storage. Trust me the oil companies would love for us to be paying 7-8 dollars a gallon. Bigger profits for them.

I worked a long time in the oil industry and see things differently. I guess I can agree to disagree and leave it at that.

 

[Copperhead]

The oil companies have very little to do with pricing... of crude or refined fuel. It is the same gig as farmers and crops. It is a market driven thing. What the folks on a commodities exchanges are willing to price stuff at thru their trading is what the price is going to be. It is a supply / demand market thing. You can only get what a market trader is willing to pay for it. If, say, Europe traders are willing to pay more for diesel than American traders, then the diesel is going to head overseas until equilibrium is reached and price on the U.S. market matches what Europe is paying. This goes on worldwide. The only reason that Europe, for instance, pays so much more for diesel at the pump than we do, is that their respective governments tax the snot out of the product. That actual cost of the diesel is almost the same as here.

The only pressure that refiners can apply to the market is either by producing more or producing less. Same as farmers. If the number of acres put into corn production was reduced by 50%, the price of corn would go thru the roof. Every business has some leverage in pricing of it's product or services, but it is extremely limited. If refineries were to scale back here in the U.S. in an attempt to drive up price, then foreign refiners would capitalize on that to move product here at a better price than they can get in their normal market. Things reach equilibrium again. The reverse is true.

It is sad that many in America are so illiterate when it comes to markets and economics. A great read that is simple and informative is Thomas Sowell's "Basic Economics". Not a dry, dusty read as it might seem. Written by a great economist for the average guy on the street. One thing for certain, one who reads this book will not be buffaloed by politicians ever again.

 

[Btown]

The oil companies have very little to do with pricing... of crude or refined fuel. It is the same gig as farmers and crops. It is a market driven thing. What the folks on a commodities exchanges are willing to price stuff at thru their trading is what the price is going to be. It is a supply / demand market thing. You can only get what a market trader is willing to pay for it. If, say, Europe traders are willing to pay more for diesel than American traders, then the diesel is going to head overseas until equilibrium is reached and price on the U.S. market matches what Europe is paying. This goes on worldwide. The only reason that Europe, for instance, pays so much more for diesel at the pump than we do, is that their respective governments tax the snot out of the product. That actual cost of the diesel is almost the same as here. The only pressure that refiners can apply to the market is either by producing more or producing less. Same as farmers. If the number of acres put into corn production was reduced by 50%, the price of corn would go thru the roof. Every business has some leverage in pricing of it's product or services, but it is extremely limited. If refineries were to scale back here in the U.S. in an attempt to drive up price, then foreign refiners would capitalize on that to move product here at a better price than they can get in their normal market. Things reach equilibrium again. The reverse is true. It is sad that many in America are so illiterate when it comes to markets and economics. A great read that is simple and informative is Thomas Sowell's "Basic Economics". Not a dry, dusty read as it might seem. Written by a great economist for the average guy on the street. One thing for certain, one who reads this book will not be buffaloed by politicians ever again.

For the first thing, oil should be removed from the commodities market. If you can not refine it you should not be able to buy it. You can only do three things with it. Sell it as a loss, profit or break even. The reason it's on the market is so rich people can become richer. Yes I know it's no guarantee.

I do understand economics. We are not talking about some great new technology here. They have been making these products for over 100 years. Don't start on me with supply and demand. I have never, I repeat never gone by any gas station (besides times of natural disasters, hurricane , tornado, blizzard etc when shipments could not be made or there was no power) and they were out of gas. Yes there was the oil embargo oh 1973. That was over 40 years ago. It hasn't happened since. We here in the good old USA sell oil and products made from oil to other countries. We do this for higher profit. Not lower profit. So if we can make more selling to others. Why would we sell it here for less. That is bad economics. So what happens. Oh we pay more. Oil on the commodities market at one point was bought and sold over 25 times from when it gets pumped from the ground till it was pumped in a vehicle. That is a lot of people making profits. I have no problem with oil companies making money. They need to. But the demand is going down in the USA. We all saw what happened to the worlds economy then the price of crude shot up in 2008. Some countries can't borrow enough from China like we do here.

 

[Got2BTru]

I actually thought little of the above had to do with pricing. It has more to do with world events and the commodities and speculative markets or futures trading. I think we should rely solely on what we produce and get out of all that!

 

[MikePA]

The oil companies have very little to do with pricing...

Remaining quote removed for brevity.

Copperhead, please do not introduce facts into this discussion.

It is much simpler to believe in black helicopters and the Great Oz behind the curtain manipulating prices.

Facts do not motivate the villagers to storm the castle with pitch forks and torches.

 

[Btown]

Copperhead, please do not introduce facts into this discussion. It is much simpler to believe in black helicopters and the Great Oz behind the curtain manipulating prices. Facts do not motivate the villagers to storm the castle with pitch forks and torches.

What facts? Don't forget to vote for Hillary when the time comes. She tells the truth and has never lied.

 

[Got2BTru]

What facts? Don't forget to vote for Hillary when the time comes. She tells the truth and has never lied.

Sheeple don't care about facts...they just want something to soothe their ears.