If I have my facts straight diesel is a less refined fraction of crude. Less volatile and less likely to spark off accidentally. Then ;
WHY IS IT MORE EXPENSIVE THEN GAS?????
When I first bought my truck diesel was 15 - 20 cents cheaper then regular at every station. Now I just saw it a DOLLAR more a gallon then regular?
***?
any thoughts?

 

I believe Diesel is easier to refine and currently does not need as much additives as gasoline needs (for different areas) and is interchangable to anywhere in US. Diesel has a higher viscosity and is heavier so when pumping large amounts a charge could develope and ignite the heavy vapors ( JetA also), gasoline vapors are more combustable but also dissipate faster. Current refinery output makes about twice as much gas as Diesel. With more trucks on the road the diesel the supply is tighter. The good news is this year some refineries are changing their systems to produce half diesel and half gasoline. The diesel being more expensive is incentives to make more diesel. Probably wont notice till next year. ( I hope)

 

Now with Ultra Low Sulfer diesel it can be shipped to Europe for more money. Which in return lower supplies here and makes our price go up.

 

Yep the 300-500,000 barrels of diesel we export everyday keeps our supply low and that causes us to pay more.

 

that is 100% correct. before ULSD, the 'dirty diesel' refined here had to stay here, because it exceeded the sulfur content that most of the rest of the world mandated. since our switch to ULSD, that fuel can be exported anywhere and everywhere

 

So far what I see the bulk of diesel exported goes to Chile (107k barrelsper day) and Mexico (98k barrels per day) the rest is peppered all over the world. Considering we make 4.2 million barrels per day of diesel, 500k barrels is around 12% of total. But the way I see it the total production of gasoline is 9 million barrels per day and diesel is a little over 4 million barrels per day bringing the total production of gas and diesel to 13 million. Some refineries are working towards making half and half so in theory that would be 7 million of each if all of them did it, but I don't believe that would really happen. But currently Marathon had an article on how they were converting at least one of their refineries to 50-50 gas & diesel. If just one refinery (200k bpd capacity) did that, the increase in diesel would be 40k barrel per day more. That would make 10% up from what we export. The refineries are in it to make money like the rest of us and are just looking to increase production of diesel because of it's short supply. Good for them. We will know if I'm right next year or so. Untill then I'm burnning diesel in the truck and gasoline in my 24' cuddy cabin boat with it's 7.4L engine, I just have to work harder to play. Life is too short to worry about the small stuff. Between my business, car, truck, house, insurance, taxes and high maintenance wifey and 11 year old fuel is my small expense .

 

Another reason it is so high is simple economics. Charge the absolute most the customer is willing to pay. Do I agree with it, not at all. Do I understand why they do it. Yes.

 

I'm not sure if it's true, but I heard that much of the imported diesel is now being diverted to China to support their mammoth growth and ever increasing appetite for world domination. That is further reducing the supply here and increasing the cost.

 

that is my approach.....gotta pay to play...that is the way i have always said it....i dont LIKE the fact that we pay so much...but hey...its the way it is...could be worse...we could be litmited to the amout of cars we have, how much we can drive those cars...limited to how many kids we can have, limited to the jobs we can have...limited to a lot of things like some of the less privd...countries of the world...(china, korea, 3rd world africa etc etc)

nca

 

Don't worry everyone, help is on the way! Most major US refineries, including the one I work at, are gearing major products towards increased distillate production. Most of the projects, while years away from completion, will eventually flood the market with increased amounts of diesel, hopefully lowering prices below gasoline again.

 

Only to be shipped abroad to the rest of the thirsty world.