Diesel fuel to skyrocket soon?

[jltrent]

If this policy is enacted worldwide by all sea-transportation by 2020 then all low-sulfur diesel will be in such high demand that it could be in very short supply.

I wonder if The U.S. Navy is exempt or even if they burn any diesel powered ships now.

serf

http://www.ttnews.com/articles/cargo-sh ... -fuel-2020

This planned transition comes at a time when the world economy is growing and both the maritime and trucking industries are at peak capacity. Of late, demand for diesel in the trucking industry has been driving prices upward.

"If I am a diesel manufacturer in the United States and I can make more money on that selling it overseas to a maritime facility, I would do that," trucking industry consultant Randy Mullett told TT.

With a little more than 18 months left before the maritime rule takes effect, trucking should begin planning now for the possible effect on diesel demand, Energy Information Administration spokesman Jonathan Cogan said. "We do not know how many vessels will convert to scrubbers, or LNG options. That is really the great unknown," he said.........

 

[Caustic Burno]

If this policy is enacted worldwide by all sea-transportation by 2020 then all low-sulfur diesel will be in such high demand that it could be in very short supply.

I wonder if The U.S. Navy is exempt or even if they burn any diesel powered ships now.

serf

http://www.ttnews.com/articles/cargo-sh ... -fuel-2020

This planned transition comes at a time when the world economy is growing and both the maritime and trucking industries are at peak capacity. Of late, demand for diesel in the trucking industry has been driving prices upward.

"If I am a diesel manufacturer in the United States and I can make more money on that selling it overseas to a maritime facility, I would do that," trucking industry consultant Randy Mullett told TT.

With a little more than 18 months left before the maritime rule takes effect, trucking should begin planning now for the possible effect on diesel demand, Energy Information Administration spokesman Jonathan Cogan said. "We do not know how many vessels will convert to scrubbers, or LNG options. That is really the great unknown," he said.........

Been selling Diesel in volume overseas since 2006 or converting to gasoline. Refiners opted out of building more desulfurization units when the EPA enacted LSD.
My refinery went from 140MBPD to 20M for US supply rest went overseas.

 

[Brute 23]

If the cost of diesel gets too high you will see LNG take a large market share. It already is gaining momentum, especially with long haul trucks.

 

[bird dog]

Most newer freighter ships are going the LNG route. Most of the older ones are going with scrubbers.

The big issue for the U.S. is that the Permian oil is getting much lighter which does not produce as much diesel. It is the reason why the WTI price spread to Brent crude is getting wider. It is also the main reason we are now exporting this lighter crude and condensate and importing more oil from the middle east.
Venezuela was our main source of heavy crude, but they are imploding. Mexico was our second best source but they are in terminal decline. Canada is our best answer but they have much so much opposition against pipe lines that they have to resort to rail which for some stupid reason, they think is a much better option.
A couple years of spot fuel shortages will change the opinions of many folks and big oil will be supported instead of the hatred that is present today.

 

[greybeard]

If this policy is enacted worldwide by all sea-transportation by 2020 then all low-sulfur diesel will be in such high demand that it could be in very short supply.

I wonder if The U.S. Navy is exempt or even if they burn any diesel powered ships now.

Yes the USN still uses a lot of diesel. The big gator Navy type ships (amphibs..and command ships & LSD, ) are diesel, as well as most of the landing craft and small boats with the exception of about 90 LCACs, (air cusion landing craft) which are gas turbine. Mine sweepers are still diesel. Not many of those in inventory tho.

But USN, other than the nuclear powered ships and submarines has been and is continuing to move to Gas Turbines, which can burn a variety of fuels, and the Navy is trying to transition to a One Fuel Navy (outside it's Nukes). That's going to be a JP type fuel, probably JP7, which is closer to kerosene than it is Diesel.
There are currently about 150 gas turbine powered ships in the US Navy. The 13 San Antonio class LPDs are all gas Turbine, all 106 current Arleigh Burke class DDGs are gas turbine, all 32 of the new Zumwalt class DDs will be gas turbines as well.

https://fas.org/man/dod-101/sys/ship/eng/index.html
Still some steam powered ships as well, but they are on their way out.

 

[backhoeboogie]

Meanwhile volcanoes are spewing sulfur into the atmosphere. Daily.

 

[1982vett]

Well...since oil has gone from $30 a barrel to $70 a barrel over the past 2 years....you can only say fuel prices have skyrocketed....

 

[Caustic Burno]

If this policy is enacted worldwide by all sea-transportation by 2020 then all low-sulfur diesel will be in such high demand that it could be in very short supply.

I wonder if The U.S. Navy is exempt or even if they burn any diesel powered ships now.

Yes the USN still uses a lot of diesel. The big gator Navy type ships (amphibs..and command ships & LSD, ) are diesel, as well as most of the landing craft and small boats with the exception of about 90 LCACs, (air cusion landing craft) which are gas turbine. Mine sweepers are still diesel. Not many of those in inventory tho.

But USN, other than the nuclear powered ships and submarines has been and is continuing to move to Gas Turbines, which can burn a variety of fuels, and the Navy is trying to transition to a One Fuel Navy (outside it's Nukes). That's going to be a JP type fuel, probably JP7, which is closer to kerosene than it is Diesel.
There are currently about 150 gas turbine powered ships in the US Navy. The 13 San Antonio class LPDs are all gas Turbine, all 106 current Arleigh Burke class DDGs are gas turbine, all 32 of the new Zumwalt class DDs will be gas turbines as well.

https://fas.org/man/dod-101/sys/ship/eng/index.html
Still some steam powered ships as well, but they are on their way out.

If I remember right there were 7 grades of Diesel from light to bunker C which is a blend.

 

[TennesseeTuxedo]

JLTrent, I'm afraid I"m going to have to rescind my offer to buy that truck you've been holding for me. Sounds like I couldn't afford to run it if the price of diesel does what they're saying.

 

[M-5]

JLTrent, I'm afraid I"m going to have to rescind my offer to buy that truck you've been holding for me. Sounds like I couldn't afford to run it if the price of diesel does what they're saying.

You asked for it now you are gonna get it.

 

[TennesseeTuxedo]

JLTrent, I'm afraid I"m going to have to rescind my offer to buy that truck you've been holding for me. Sounds like I couldn't afford to run it if the price of diesel does what they're saying.

You asked for it now you are gonna get it.

I can afford gas and the truck I already own is a gasser.

 

[M-5]

JLTrent, I'm afraid I"m going to have to rescind my offer to buy that truck you've been holding for me. Sounds like I couldn't afford to run it if the price of diesel does what they're saying.

You asked for it now you are gonna get it.

I can afford gas and the truck I already own is a gasser.

One affects the other , You got a tractor that drinks about 3 gal an hour dont ya

 

[TennesseeTuxedo]

You asked for it now you are gonna get it.

I can afford gas and the truck I already own is a gasser.

One affects the other , You got a tractor that drinks about 3 gal an hour dont ya

Lord know I don't go through diesel at that rate.

Title of this thread is "Diesel fuel to skyrocket soon?" so brace yourself. I've locked in my custom hay rate for 2018 at the same price I paid in 2016 and 2017. The hay man provides his own fuel.

 

[Brute 23]

A higher diesel cost will be linked to processing IF it were to happen, not oil prices.

 

[True Grit Farms]

Diesel is up over $.70 from last year. The oil companies are trying to run us into a recession. Our new boat only burns 25 gallons of diesel per hour, might of been another bonehead move.

 

[Brute 23]

Oil prices are inflated due to the current Bull Market. Even the O&G companies know that. It will be short lived.

 

[jltrent]

JLTrent, I'm afraid I"m going to have to rescind my offer to buy that truck you've been holding for me. Sounds like I couldn't afford to run it if the price of diesel does what they're saying.

Tell me bout it...........driving a full size truck as ones main ride now is not cheap..........pulling a diesel truck into fill up at $3 per..... at 30 gallons adds up. My Honda ride takes me most places and the truck is there in the garage only when needed.