In the WSJ today:
An advisory committee of oil-industry officials warned federal regulators that new requirements on refiners to reduce the sulfur content in diesel fuel could cause "significant" supply disruptions.

Apparently there are 18 months left to solve this problem or supplies will get even tighter. Anyone know anything specific about this? I always thought that our national trucking infrastructure was important enough that the EPA and others would not mess with diesel in a way that drove costs through the roof. Now I wonder.

 

All I know is that they've had plenty of warning that ULSD was going to be required, like over ten years with one and half to go. It's not like the technology isn't there, Europe has been using ULSD for years. Engine manufactors have been preparing for the '07 tier of emissions requirements for years and most already have compliant engines on the market. There is no excuse for the oil industry to be lagging behind.
Nor is it that the oil companies are hurting for money.
In my opinion any shortage will only be the result of oil company greed.

 

Isn't that the way it usally happens, you create a crissis, drive prices up, crissis over, price still up. I've seen it here with gas, water & trash.

 

From my understanding a few refineries here in the US is already producing ULSD. if you're living on the east and west coast you probably been buying ULSD and didn't know it. Two that I can think of is BP and Murphy Oil. In Texas we will start using LED (light emissions diesel) fuel this coming April.

MikeyB

 

Diesel fuel drives the economy, so even if they let it get screwed up, they'll have to fix it in a big hurry. The Feds will get involved, and it will cost the taxpayers, but it will get fixed.

 

They'll change their tune when they find out when the diesel price goes up the gas price goes up with it...how do they think the gas gets to the gas station anyway? Groceries too. Everybody will pay the price...even the dumb EPA people.

 

Many refineries over the last few years have upgraded for ULSD and came on line. So most have been using ULSD for a while now.

 

Or laziness. Big businesses (at least those who face no real competition) are often content to procrastinate everything until the very latest moment possible. Then somehow we're supposed to buy that "they didn't have time"?

Sounds like it might be intentional, as they can then use this as an excuse for artificially high pricing. :rolleyes

JLH

 

Yep, I have to agree. The ULSD requirement has been well known for many years. I have no sympathy for them if the refiners haven't "got their ducks in a row" by now!

Rusty

 

The WSJ is in the business to make news. The more dramatic the news, the better. The key word here is "could". It "could cause 'significant' supply disruptions". Yeah, it could, but I think it will more than likely not. Friggin' media, you just can't trust them.

 

I was under the impression that ULSD was already being phased in? I find it hard to believe that it will "drive prices through the roof"... It's just ULSD...

 

I'm guessing ULSD is ultra low sulphur diesel?

 

Guessed right!

 

If they did wait to the last minute id like to see this step from the gov


Well youve known long enough. price cap. Dont care for your shortage your gonna make less money then and yada yada.

Id like it

 

http://dieselforum.org/news/sept_23_2004.html

EPA REPORT CONFIRMS PROGRESS TOWARDS CLEAN DIESEL



September 23, 2004, WASHINGTON, D.C. - Allen Schaeffer, executive director of the Diesel Technology Forum issued the following statement in response to a status report released today by the U.S. Environmental Protection Agency (EPA) regarding fuel refiners' readiness to meet ultra-low sulfur diesel (ULSD) fuel regulations set for June 2006:

"Today the EPA issued a report which indicates that not only are fuel refiners on track to meet the 15 parts per million (ppm) sulfur limit for diesel fuel by 2006, but that the fuel will be widely available nationwide (95 percent will meet the 15 ppm specifications) with production well in line with demand. This conclusion came from EPA's analysis of data collected by more than 120 refineries.

Today's report is good news and another indication that the entire diesel industry is on track for the on-time delivery of remarkably clean trucks and buses. Now less than two years away, these new clean diesel engines and fuels will play a leading role in helping cities meet new air quality goals. In fact, ULSD is already available on a limited basis serving a number of niche markets, particularly transit and school bus fleets.

For the manufacturers of on-highway diesel engines, fuel refiners and exhaust aftertreatment manufacturers, 2007 is the ultimate clean diesel milestone. From the time these new standards were adopted in 2000, the entire diesel industry has been working toward the 2006 ULSD fuel mandate that will set the stage for the subsequent virtual elimination of diesel emissions - with a 90 percent reduction in particulate matter (PM) and an 87 percent reduction in nitrogen oxides (NOx) by 2007.

The EPA report confirms that industry is well on its way and remains committed to meeting both the fuel and subsequent engine standards on time. Achieving this clean air milestone will be the result of an unprecedented level of investment in research and development of new technologies on behalf of the diesel industry.

The members of the Diesel Technology Forum are committed to helping achieve cleaner air in the timeliest manner possible, and we look forward to continuing our path to 2007 clean diesel for the on-highway sector."


# # #
The Diesel Technology Forum represents engine makers, fuel producers and emissions control manufacturers. It brings together the diesel industry, the broad diesel user community, civic and public interest leaders, government regulators, academics, scientists, the petroleum industry, and public health researches, to encourage the exchange of information, ideas, scientific findings, and points-of-view to current and future uses of diesel power technology. For more information about the Forum visit our web site at www.dieselforum.org.