Diesel prices

[deereman63]

A very interesting article in yesterday’s Wall Street Journal on diesel prices. Without going into too much detail in deference to the paper’s copyright, it noted that diesel sold at a premium to gas and this was a reflection of the demand pressures on diesel supplies world wide. 50 % of new cars in Europe now come with diesel engines; China is using diesel generators to make up for shortfalls in power generation and in the States with the consumer still spending the trucking industry is still hauling. The upshot being don’t expect any break soon.

 

[BoneheadNW]

I'm not sure if many of you are aware of the gasbuddy.com web site (see link below). To find the lowest diesel price in your area, first click on your state, then click on the link of the area closest to you (i.e for me that would be Washington and Seattle, respectively), then click on diesel. The lowest and highest priced fuel stations will then be displayed.

Bonehead

http://www.gasbuddy.com/

 

[RalphVa]

Doubt prices will ever again come down. Demand is projected to continue upward worldwide. The higher prices will drive some conversion of shale/coal and LNG projects. These all cost money and aren't justified unless the price stays up. At the old prices, even new refineries weren't justified economically. Most are running on equipment dating back to the 1950s. We were (and probably still are) making lube oil from equipment dating back to the late 1930s. We'll see more biodiesel and diesel from liquifying and polymerization of natural gas becoming available. Prices won't go down.

Ralph

 

[JoeR]

I can't understand why a low grade fuel costs so much. It does not take much to refine petroleum into diesel; therefore, the refining process and turnaround should be minimal. Of course supply and demand has an impact, but Europe and China import oil not diesel. This means their demand for diesel would drive oil prices up, but not the particular type of refined oil. Diesel should cost less than gas based on the fact that it is easier to refine than gasoline.

Personally, I think the US should use more Rail to transport goods, and get away from motor vehicle petroleum dependence. Our highways have turned into truck hauling routes. I understand the need to use a truck to haul perishable goods, but the railroad should be used more. This would reduce congestion, wear and maintenance on the roads, and promote another viable form of transportation.

Overall, the demand for petroleum is up since numerous products use it to create goods. Agriculture herbicides, pesticides, etc... Look at how much plastic is in a car, plastic plates, cups, polymers and so on. We have more plastic or petroleum created products that have no relation to the automotive industry. The computers I am typing on has a plastic keyboard, mouse, monitor, etc...

Just my 2 cents…

Joe