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Non-Cattle Specific Topics
Coffee Shop
UPDATE: Price of diesel in your neck of the woods?e
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<blockquote data-quote="Douglas" data-source="post: 931648" data-attributes="member: 8840"><p>I did some research a year or so ago on the price of diesel. Was wondering why diesel was cheaper than gas years ago and now cost more. What I found was that it is primarily due to our refining set up. It is my understanding that a refinery when built is designed in two configurations. In one configuration about 30% of total production is diesel. In the other much less. Since he have not built any new refineries lately the supply of diesel has not change much over the years, while the demand has increases. This increase demand is primarily from Europe where diesels cars are popular. Here, I think diesels car have difficulty meeting pollution regulations. So now instead of having an oversupply of diesel in the US, we export that diesel and that has caused the cost to be more in line with production costs. The ships that carry diesel to Europe return with their excess gas as they have the opposite situation, not enough diesels and too much gas. And of course more recently higher sulfur standards and higher taxes on diesel push the price up.</p></blockquote><p></p>
[QUOTE="Douglas, post: 931648, member: 8840"] I did some research a year or so ago on the price of diesel. Was wondering why diesel was cheaper than gas years ago and now cost more. What I found was that it is primarily due to our refining set up. It is my understanding that a refinery when built is designed in two configurations. In one configuration about 30% of total production is diesel. In the other much less. Since he have not built any new refineries lately the supply of diesel has not change much over the years, while the demand has increases. This increase demand is primarily from Europe where diesels cars are popular. Here, I think diesels car have difficulty meeting pollution regulations. So now instead of having an oversupply of diesel in the US, we export that diesel and that has caused the cost to be more in line with production costs. The ships that carry diesel to Europe return with their excess gas as they have the opposite situation, not enough diesels and too much gas. And of course more recently higher sulfur standards and higher taxes on diesel push the price up. [/QUOTE]
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UPDATE: Price of diesel in your neck of the woods?e
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