OT: diesel fuel: why isn't it cheaper than gasoline?
11-05-2004, 10:22 AM
#11
Guest
Posts: n/a
Re: diesel fuel: why isn't it cheaper than gasoline?
I said the same thing, later than you in this thread. It doesn't really
answer his question, though.
IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
than gasoline" is something of a popular myth. Both are distillates of
crude oil, along with LNG, jet fuels, various waxes, lubricating greases
and asphalt, they just appear at different parts of the spectrum but they
are all "refined". Refiners can extend production of lighter products by
cracking heavier products, but it still all comes out of that $50 barrel
of crude and provides a product in higher demand by sacrificing a product
with lower demand.
Fuel prices ain't ever going to go down in any real way. They will only
go up from here -- unless the next round of influenza kills off 1/3 of the
energy-consuming population.
On Fri, 5 Nov 2004, Jo Bo wrote:
> Diesel goes up in the fall because for demand in the NE for home heating
> oil. During the summer months it's lower at the larger outlets then
> gasoline. Also in the fall people are done with vacations and the demand
> for gas goes down. As Bill pointed out"supply and demand" determine the
> price.
>
> JoBo
>
> "Wblane" <wblane@aol.combotizer> wrote in message
> news:20041104165622.06439.00000105@mb-m18.aol.com...
>> If you don't want to read this thread then don't. This is a legit
>> question not a troll.
>>
>> I always though diesel fuel was less refined than gasoline so why isn't
>> it cheaper than gasoline?
--
Some conditions apply. YMMV. This message was packed by weight, not
by volume. TWIAVBP, local variation may occur. Dramatization, not a real
authority. Do not induce vomiting. No user-serviceable words inside.
11-05-2004, 01:00 PM
#12
Guest
Posts: n/a
Re: diesel fuel: why isn't it cheaper than gasoline?
It rained for the first time in six months week before last and
washed out the pipe line between Los Angeles and Phoenix and prices
instantly dropped by twenty cents for that week. I imagine they went up
by that amount in Arizona, more if everyone topped off.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Lee Ayrton wrote:
>
> I said the same thing, later than you in this thread. It doesn't really
> answer his question, though.
>
> IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
> than gasoline" is something of a popular myth. Both are distillates of
> crude oil, along with LNG, jet fuels, various waxes, lubricating greases
> and asphalt, they just appear at different parts of the spectrum but they
> are all "refined". Refiners can extend production of lighter products by
> cracking heavier products, but it still all comes out of that $50 barrel
> of crude and provides a product in higher demand by sacrificing a product
> with lower demand.
>
> Fuel prices ain't ever going to go down in any real way. They will only
> go up from here -- unless the next round of influenza kills off 1/3 of the
> energy-consuming population.
washed out the pipe line between Los Angeles and Phoenix and prices
instantly dropped by twenty cents for that week. I imagine they went up
by that amount in Arizona, more if everyone topped off.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Lee Ayrton wrote:
>
> I said the same thing, later than you in this thread. It doesn't really
> answer his question, though.
>
> IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
> than gasoline" is something of a popular myth. Both are distillates of
> crude oil, along with LNG, jet fuels, various waxes, lubricating greases
> and asphalt, they just appear at different parts of the spectrum but they
> are all "refined". Refiners can extend production of lighter products by
> cracking heavier products, but it still all comes out of that $50 barrel
> of crude and provides a product in higher demand by sacrificing a product
> with lower demand.
>
> Fuel prices ain't ever going to go down in any real way. They will only
> go up from here -- unless the next round of influenza kills off 1/3 of the
> energy-consuming population.
11-05-2004, 01:00 PM
#13
Guest
Posts: n/a
Re: diesel fuel: why isn't it cheaper than gasoline?
It rained for the first time in six months week before last and
washed out the pipe line between Los Angeles and Phoenix and prices
instantly dropped by twenty cents for that week. I imagine they went up
by that amount in Arizona, more if everyone topped off.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Lee Ayrton wrote:
>
> I said the same thing, later than you in this thread. It doesn't really
> answer his question, though.
>
> IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
> than gasoline" is something of a popular myth. Both are distillates of
> crude oil, along with LNG, jet fuels, various waxes, lubricating greases
> and asphalt, they just appear at different parts of the spectrum but they
> are all "refined". Refiners can extend production of lighter products by
> cracking heavier products, but it still all comes out of that $50 barrel
> of crude and provides a product in higher demand by sacrificing a product
> with lower demand.
>
> Fuel prices ain't ever going to go down in any real way. They will only
> go up from here -- unless the next round of influenza kills off 1/3 of the
> energy-consuming population.
washed out the pipe line between Los Angeles and Phoenix and prices
instantly dropped by twenty cents for that week. I imagine they went up
by that amount in Arizona, more if everyone topped off.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Lee Ayrton wrote:
>
> I said the same thing, later than you in this thread. It doesn't really
> answer his question, though.
>
> IANAPetroChemicalEngineer, but from what I gather "diesel is less refined
> than gasoline" is something of a popular myth. Both are distillates of
> crude oil, along with LNG, jet fuels, various waxes, lubricating greases
> and asphalt, they just appear at different parts of the spectrum but they
> are all "refined". Refiners can extend production of lighter products by
> cracking heavier products, but it still all comes out of that $50 barrel
> of crude and provides a product in higher demand by sacrificing a product
> with lower demand.
>
> Fuel prices ain't ever going to go down in any real way. They will only
> go up from here -- unless the next round of influenza kills off 1/3 of the
> energy-consuming population.
11-05-2004, 03:06 PM
#14
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
also, diesel is a commodity, so if other countries are prepared to pay more
for it, the price goes up.
Dave Milne, Scotland
'91 Grand Wagoneer, '99 TJ
"Lee Ayrton" <layrton@panix.com> wrote in message
news:Pine.NEB.4.61.0411050925030.13528@panix3.pani x.com...
>
> There's a little bit of faulty logic there. If you're burning 15 gallons
> a week it doesn't matter if you top off your tank this week or next, over
> a multiweek span it is _still_ 15 gallons a week. You haven't changed
> demand at all, you just shifted it one week.
>
> The real demand fluctuation comes from the heating season: Diesel fuel is
> very similar to home heating oil (can we take the "It is too the same/is
> not exactly the same" arguments as read?) Maximum delivery for that
> family of product is restricted by refinery capacity and transportation
> methods. When demand goes up, so does the price. There are no economies
> of scale that come into play because the fluctuation is seasonal -- the
> price will not go down just because you are selling more. Simple
> capitalism at work.
>
>
> On Fri, 5 Nov 2004, mic canic wrote:
>
> > it used to be, then everyone bought diesels and demand for the fuel went
> > up and so did the price so do what everyone else does and race to the
> > pump to top off your tank even though the you know you have enough gas
> > to get you thru the week and make that demand go up even more and the
> > price to follow supply and demand. slow down your use, supply goes up
> > and price comes down time to reinact the 55mph speed limit for a while
> >
> > Wblane wrote:
> >
> >> If you don't want to read this thread then don't. This is a legit
question not
> >> a troll.
> >>
> >> I always though diesel fuel was less refined than gasoline so why isn't
it
> >> cheaper than gasoline?
> >> -Bill (remove "botizer" to reply via email)
> >
> >
>
> --
> Some conditions apply. YMMV. This message was packed by weight, not
> by volume. TWIAVBP, local variation may occur. Dramatization, not a real
> authority. Do not induce vomiting. No user-serviceable words inside.
for it, the price goes up.
Dave Milne, Scotland
'91 Grand Wagoneer, '99 TJ
"Lee Ayrton" <layrton@panix.com> wrote in message
news:Pine.NEB.4.61.0411050925030.13528@panix3.pani x.com...
>
> There's a little bit of faulty logic there. If you're burning 15 gallons
> a week it doesn't matter if you top off your tank this week or next, over
> a multiweek span it is _still_ 15 gallons a week. You haven't changed
> demand at all, you just shifted it one week.
>
> The real demand fluctuation comes from the heating season: Diesel fuel is
> very similar to home heating oil (can we take the "It is too the same/is
> not exactly the same" arguments as read?) Maximum delivery for that
> family of product is restricted by refinery capacity and transportation
> methods. When demand goes up, so does the price. There are no economies
> of scale that come into play because the fluctuation is seasonal -- the
> price will not go down just because you are selling more. Simple
> capitalism at work.
>
>
> On Fri, 5 Nov 2004, mic canic wrote:
>
> > it used to be, then everyone bought diesels and demand for the fuel went
> > up and so did the price so do what everyone else does and race to the
> > pump to top off your tank even though the you know you have enough gas
> > to get you thru the week and make that demand go up even more and the
> > price to follow supply and demand. slow down your use, supply goes up
> > and price comes down time to reinact the 55mph speed limit for a while
> >
> > Wblane wrote:
> >
> >> If you don't want to read this thread then don't. This is a legit
question not
> >> a troll.
> >>
> >> I always though diesel fuel was less refined than gasoline so why isn't
it
> >> cheaper than gasoline?
> >> -Bill (remove "botizer" to reply via email)
> >
> >
>
> --
> Some conditions apply. YMMV. This message was packed by weight, not
> by volume. TWIAVBP, local variation may occur. Dramatization, not a real
> authority. Do not induce vomiting. No user-serviceable words inside.
11-05-2004, 03:06 PM
#15
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
also, diesel is a commodity, so if other countries are prepared to pay more
for it, the price goes up.
Dave Milne, Scotland
'91 Grand Wagoneer, '99 TJ
"Lee Ayrton" <layrton@panix.com> wrote in message
news:Pine.NEB.4.61.0411050925030.13528@panix3.pani x.com...
>
> There's a little bit of faulty logic there. If you're burning 15 gallons
> a week it doesn't matter if you top off your tank this week or next, over
> a multiweek span it is _still_ 15 gallons a week. You haven't changed
> demand at all, you just shifted it one week.
>
> The real demand fluctuation comes from the heating season: Diesel fuel is
> very similar to home heating oil (can we take the "It is too the same/is
> not exactly the same" arguments as read?) Maximum delivery for that
> family of product is restricted by refinery capacity and transportation
> methods. When demand goes up, so does the price. There are no economies
> of scale that come into play because the fluctuation is seasonal -- the
> price will not go down just because you are selling more. Simple
> capitalism at work.
>
>
> On Fri, 5 Nov 2004, mic canic wrote:
>
> > it used to be, then everyone bought diesels and demand for the fuel went
> > up and so did the price so do what everyone else does and race to the
> > pump to top off your tank even though the you know you have enough gas
> > to get you thru the week and make that demand go up even more and the
> > price to follow supply and demand. slow down your use, supply goes up
> > and price comes down time to reinact the 55mph speed limit for a while
> >
> > Wblane wrote:
> >
> >> If you don't want to read this thread then don't. This is a legit
question not
> >> a troll.
> >>
> >> I always though diesel fuel was less refined than gasoline so why isn't
it
> >> cheaper than gasoline?
> >> -Bill (remove "botizer" to reply via email)
> >
> >
>
> --
> Some conditions apply. YMMV. This message was packed by weight, not
> by volume. TWIAVBP, local variation may occur. Dramatization, not a real
> authority. Do not induce vomiting. No user-serviceable words inside.
for it, the price goes up.
Dave Milne, Scotland
'91 Grand Wagoneer, '99 TJ
"Lee Ayrton" <layrton@panix.com> wrote in message
news:Pine.NEB.4.61.0411050925030.13528@panix3.pani x.com...
>
> There's a little bit of faulty logic there. If you're burning 15 gallons
> a week it doesn't matter if you top off your tank this week or next, over
> a multiweek span it is _still_ 15 gallons a week. You haven't changed
> demand at all, you just shifted it one week.
>
> The real demand fluctuation comes from the heating season: Diesel fuel is
> very similar to home heating oil (can we take the "It is too the same/is
> not exactly the same" arguments as read?) Maximum delivery for that
> family of product is restricted by refinery capacity and transportation
> methods. When demand goes up, so does the price. There are no economies
> of scale that come into play because the fluctuation is seasonal -- the
> price will not go down just because you are selling more. Simple
> capitalism at work.
>
>
> On Fri, 5 Nov 2004, mic canic wrote:
>
> > it used to be, then everyone bought diesels and demand for the fuel went
> > up and so did the price so do what everyone else does and race to the
> > pump to top off your tank even though the you know you have enough gas
> > to get you thru the week and make that demand go up even more and the
> > price to follow supply and demand. slow down your use, supply goes up
> > and price comes down time to reinact the 55mph speed limit for a while
> >
> > Wblane wrote:
> >
> >> If you don't want to read this thread then don't. This is a legit
question not
> >> a troll.
> >>
> >> I always though diesel fuel was less refined than gasoline so why isn't
it
> >> cheaper than gasoline?
> >> -Bill (remove "botizer" to reply via email)
> >
> >
>
> --
> Some conditions apply. YMMV. This message was packed by weight, not
> by volume. TWIAVBP, local variation may occur. Dramatization, not a real
> authority. Do not induce vomiting. No user-serviceable words inside.
11-05-2004, 03:36 PM
#16
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
middle east, and the U.S. of A. takes that in some kind of trade, I'll
never understand.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Dave Milne wrote:
>
> also, diesel is a commodity, so if other countries are prepared to pay more
> for it, the price goes up.
>
> Dave Milne, Scotland
> '91 Grand Wagoneer, '99 TJ
middle east, and the U.S. of A. takes that in some kind of trade, I'll
never understand.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Dave Milne wrote:
>
> also, diesel is a commodity, so if other countries are prepared to pay more
> for it, the price goes up.
>
> Dave Milne, Scotland
> '91 Grand Wagoneer, '99 TJ
11-05-2004, 03:36 PM
#17
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
middle east, and the U.S. of A. takes that in some kind of trade, I'll
never understand.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Dave Milne wrote:
>
> also, diesel is a commodity, so if other countries are prepared to pay more
> for it, the price goes up.
>
> Dave Milne, Scotland
> '91 Grand Wagoneer, '99 TJ
middle east, and the U.S. of A. takes that in some kind of trade, I'll
never understand.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
Dave Milne wrote:
>
> also, diesel is a commodity, so if other countries are prepared to pay more
> for it, the price goes up.
>
> Dave Milne, Scotland
> '91 Grand Wagoneer, '99 TJ
11-05-2004, 03:52 PM
#18
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
That's why the Saudis love Bush so much.
I'll bet the Saudis contributed to Bush's campaign in a big way.
> Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
>middle east, and the U.S. of A. takes that in some kind of trade, I'll
>never understand.
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
-Bill (remove "botizer" to reply via email)
I'll bet the Saudis contributed to Bush's campaign in a big way.
> Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
>middle east, and the U.S. of A. takes that in some kind of trade, I'll
>never understand.
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
-Bill (remove "botizer" to reply via email)
11-05-2004, 03:52 PM
#19
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
That's why the Saudis love Bush so much.
I'll bet the Saudis contributed to Bush's campaign in a big way.
> Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
>middle east, and the U.S. of A. takes that in some kind of trade, I'll
>never understand.
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
-Bill (remove "botizer" to reply via email)
I'll bet the Saudis contributed to Bush's campaign in a big way.
> Yup, our Alaskan oil goes to Japan, they pretend to buy it from the
>middle east, and the U.S. of A. takes that in some kind of trade, I'll
>never understand.
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
-Bill (remove "botizer" to reply via email)
11-05-2004, 03:54 PM
#20
Guest
Posts: n/a
Re: OT: diesel fuel: why isn't it cheaper than gasoline?
How did Mercedes doom the trucking industry? From what I can tell trucking is
big business and the industry still needs more truckers.
>retailing it for twenty nine cent a gallon. And still diesel was
>retailed for twenty one cents a gallon (11¢ of that was tax) up and
>until the Mercedes started selling diesels in Kalifornia in '78, and
>domed the poor trucker and with that, had the domino effect of killing
>American industry, making it impossible to compete with China. F**Kin'
>diesel cars!
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
>
-Bill (remove "botizer" to reply via email)
big business and the industry still needs more truckers.
>retailing it for twenty nine cent a gallon. And still diesel was
>retailed for twenty one cents a gallon (11¢ of that was tax) up and
>until the Mercedes started selling diesels in Kalifornia in '78, and
>domed the poor trucker and with that, had the domino effect of killing
>American industry, making it impossible to compete with China. F**Kin'
>diesel cars!
> God Bless America, ßill O|||||||O
>mailto:-------------------- http://www.----------.com/
>
-Bill (remove "botizer" to reply via email)
