get ready for very expensive diesel

[Redbug]

I would guess that the cost to make a gallon of diesel/gas from crude would be the same whether there is a glut or shortage of the crude oil. The process cost remains the same...it would be a constant. I can surmise that the gas prices at the pump are artificially inflated by the gas companies, (except when the cost of the base product (crude) goes up). If there's plenty of crude...what's going on...a little more demand, but aren't we also being skinned alive?

 

[MikePA]

...(except when the cost of the base product (crude) goes up).

Fact - The price of crude is going up.
Fact - Dollar is weak
Fact - Demand for oil from other countries like China and India is growing.
Fact - US companies are not allowed to search for new sources of oil in the US.

No new supplies of oil + increasing demand = Higher prices.

Anyone who's attended a tractor auction and watched people bid on the same tractor knows this. Limited supply (one tractor) + multiple bidders (increasing demand) = Higher price to the seller.

...are we are being skinned alive?

If you believe facts - No

Several facts have been mentioned in this thread. There was an excellent link posted.

For people looking to learn, there's plenty of information available. For others, it's like trying to use facts to convince them their religion is wrong, i.e., a waste of time.

 

[Roto]

I helps when facts are ignored;

• Refineries are running almost flat out all the time they can't just 'make more diesal' without stopping making other fuels.
• Refineries have to switch to making heating oil in the fall/winter.
• Home heating oil = diesel fuel

You said they are running flat out without stopping and making other fuels. Well take some of the big gas makers and switch them over to diesal. Its my underdstanding that gas is more refined then diesal so it should be easier to switch the gas makers to diesal to help with the shortage Diesal has been higher then gas for a year now so in that time im sure the big refineries could switch to making more diesal to keep up. Stop gas and make diesal is my slogan.

mike

 

[ray66v]

I have been paying between $4.00-5.00 a gallon for aviation fuel for over a year now. So, when I fuel the car or the tractor, it "seems" like a deal!?

 

[Ductape]

Fact - The price of crude is going up.
Fact - Dollar is weak
Fact - Demand for oil from other countries like China and India is growing.
Fact - US companies are not allowed to search for new sources of oil in the US.

No new supplies of oil + increasing demand = Higher prices.

Anyone who's attended a tractor auction and watched people bid on the same tractor knows this. Limited supply (one tractor) + multiple bidders (increasing demand) = Higher price to the seller.

All very true !

However, for there to be a fair and equitable price at the pump, there needs to be a free and open market to set the price.

Lets use as an example, a wealthy American..... i'll use Bill Gates.

Bill Gates sees the profits the few petroleum companies here are making. He says (and theoretically, can afford to), i'll start a petroleum company to compete with them, but i'll sell my gas cheaper and still make plenty of profit. Can he??? Heck no !!!! Our government forbids him from exploring for, drilling for, and refining petroleum !

Lets take that tractor at auction........ but now the government has forbidden the manufacture of ALL new tractors, except for the ones produced by tractor company X and company Z. Now how much is that tractor going to bring at that same auction? How much will a tractor bring at an auction next week? How long till farmers can no longer afford tractors?

How about if food manufacturers were allowed to merge until there were only three? Then no new food manufactureres were allowed to enter the market. What would happen to the price of food we all eat? The three food manufacturing companies saying" Too bad.... its "supply and demand" If you want to eat cheaper, then stop having children..... or grow your own food at your house/condo/apartment.


MikePA is right though....... it is like arguing religion.

Those of us who are getting rich off our oil stocks are never going to agree with those of us who feel we are getting gouged at the pumps.

 

[MikePA]

How about if food manufacturers were allowed to merge until there were only three?

There aren't just 3 oil companies;

Exxon Mobil
Chevron
Conoco Phillips
BP
Royal Dutch Shell

I know, let's break up the US companies so they're at a disadvantage when competing on the world market with the big companies. Makes sense to me.

 

[Ductape]

My use of "3" was just a number. Insert "1", "5", or "7"..... my point is the same.

For "supply and demand" to set a price that is fair and equitable, it must be a free and fair market. What we have now is a fixed market. Otherwise, what you end up with is a monopoly.

At that i'll opt out of this thread...... i don't want my ignorance to begin to show !!

 

[joerocker]

Don't blame our government as much as you do OPEC. They set the price.

They MUST get more and more money for their (won't last forever) oil to pay their own debts and keep their lifestyle going.

Is oil REALLY running out? It doesn't really matter since OPEC fixes the price by controlling output. They can CREATE a shortage and make it permanent.

Why do you think we're in Iraq and Afghanistan? To keep that oil flowing baby...

We don't use much middle east oil ourselves...but our CUSTOMERS do... The world is going global folks. Europe has the EU, China has...China, and we're on the fast track to a NAU with Canada and Mexico. It won't be long before we have the GU or the WU...everyone happy customers and consumers.

 

[MikePA]

We don't use much middle east oil ourselves...

At least 25% of our imports in December were from the Middle East.

... and we're on the fast track to a NAU with Canada and Mexico. It won't be long before we have the GU or the WU...everyone happy customers and consumers.

What's that sound? Yep, I can just make it out. Oh no! It's, it's black helicopte.....

 

[LBrown59]

That was the other thing that I was gonna suggest: get smaller tractors. Unless you're doing a whole lot of Ag work requiring 30+ hp, you can likely do about 90% of what you want to do with a 16-20 hp tractor instead of a 30-40 hp one. An 18 hp tractor will use just short of 0.5 gallon/hr. A 60-80 hp ag tractor would probably use about 2 gallons/hr. BIG difference. Just use a little tractor. Rent a big one occasionally when you need the heft.

Same thing for pickups. Best most of you could do what needs to be done 90% of the time with a small pickup (Tacoma 2wd ones with 4 cylinder get 28 mpg average, 30 mpg at 85 mph on the road with their "hemi" head engines; future hybrid ones will get 40-50).

Manufacturers could make the little trucks ride as well as the big ones, too. Just bolt the differential to the frame and put in swing axles will go a long ways to improving both ride and handling. The Tacoma 2wd is not bad even with the bouncing differential. Ford Rangers, by comparison, don't have a suspension. They ride like go karts.

Ralph

I got this covered with 2 Dodge D 50 Pick ups a Toyota PU and a Nissan PU.
== L B ==