What are you paying for Diesel in your area?

[The Engineer]

Why is Diesel Fuel More Expensive Than Gasoline?

http://www.wisegeek.com/why-is-diesel-fuel-more-expensive-than-gasoline.htm

Diesel fuel, the kind of fuel commonly used in commercial trucks, has not always been more expensive than the standard gasoline used in passenger vehicles. On paper at least, diesel fuel is a less refined petroleum distillate than gasoline, so it should always be cheaper to produce than gasoline. The problem with diesel fuel prices has more to do with the laws of supply and demand for various petroleum products, not the actual cost of production.

A barrel of crude oil can be "cracked," or broken down into a number of different products, from home heating oil to gasoline to kerosene. Oil refiners can only process a fixed number of these products at one time, however, so they tend to choose the products in highest demand at the time. This generally means gasoline for passenger vehicles takes precedence over diesel fuel for commercial vehicles. When the supply of diesel fuel is low, the price naturally goes higher.

At some point in the year, oil refiners concentrate their efforts on another product similar to diesel fuel: home heating oil. At this point, usually just before winter, diesel fuel becomes more plentiful and the price usually drops. This trend doesn't always hold true, however, since a particularly cold winter can keep demand for home heating oil high and once again put diesel fuel production lower on the refiner's agenda.

 

[SmokeShow]

x2 I think they just need to settle for less that xx billion profit and they would be fine.

I get so sick of hearing that. Why can't they profit out the wahzoo when they have record sales?!?!?! The Marathons, Shells, etc have some of the lowest profit margins of any global companies.

Hell, the little business I work for has probably 30-40% profit worked into their pricing. Furniture retailers have something like 500%. Refiners have something 5%? Yes, their profits were a big number but it's not because their profit margin is out of line, it's because the consumer bought a lot.

The same ppl I hear make that kind of bogus statement also hate that athletes make "stupid" money to play a sport. Wrong, the sports industry is a trillion plus industry. Every team is a for-profit BUSINESS. If they don't make money, the paychecks go away. So when they get paid seemingly ridiculous wages, it's because someone in the business thinks they'll get a return on those dollars. If not, the contracts r cut & the owners move on.

Those two arguments just irk me. Sorry for climbing on the soapbox. It's not really totally aimed at you Porno Joe. There are lots of ppl with your same thinking. I'm just not one of em.

 

[workin' diesel]

Here in southern Alberta it is anywhere from $4.38 to $4.90 a gallon for diesel. Why did I move here?!?! Everything is expensive here from houses to a case of beer. One can't even afford to have fun! LOL!

 

[catman3126]

I'm in Hawaii right now and it's still 4.89$ a gallon here. Be glad we don't have that anymore.

 

[Subman]

You can just read a few lines of this to get the gist. Now, let me tell you about the flip side of this coin. I heard an energy industry analyst on the radio a couple days ago. He said that Saudi Arabia and some other OPEC countries do not want to curtail supplies to drive up the price of oil. Because it costs us a lot more to produce a barrel of oil than it does them, it is believed their real strategy is to drive a lot of these American producers out of business. It is a global market so the going price applies practically everywhere. Companies that refine and sell gas to the consumers are not going to pay more to buy American oil. Therefore, American producers will stop operations rather than sell each barrel at a price lower than their production cost. Since you have fracking operations going on there, perhaps there have been some articles discussing this viewpoint in the papers.

Subject: Oil Glut..............
Date: December 1, 2014 at 5:49:11 PM PST
To:


Next time you have to fill up at $3.49/gallon, think of this!!

OIL - You better be sitting down when you read this!

As you may know, Cruz Construction started a division in North Dakota just 6 months ago. They send every Kenworth (9 trucks) we had here in Alaska to North Dakota and several drivers. They just bought two new Kenworth's to add to that fleet; one being a Tri Drive tractor and a new 65 ton lowboy to go with it.

They also bought two new cranes (one crawler & one rubber tired) for that division.

Dave Cruz said they have moved more rigs in the last 6 months in ND than Cruz Construction moved in Alaska in the last 6 years.

Williston is like a gold rush town; they moved one of our 40 man camps down there since there are no rooms available.

Unemployment in ND is the lowest in the nation at 3.4 percent last I checked.

See anything in the national news about how the oil industry is fueling North Dakota's economy?

Here's an astonishing read. Important and verifiable information:

About 6 months ago, the writer was watching a news program on oil and one of the Forbes Bros. was the guest.

The Bakken is the largest domestic oil discovery since Alaska 's Prudhoe Bay , and has the potential to eliminate all American dependence on foreign oil.


The Energy Information Administration sm(EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable( 5 billion barrels), at $107 a barrel, we're looking at a resource base worth more than $5.3 trillion.

"When I first briefed legislators on this, you could practically see their jaws hit the floor.

They had no idea.." says Terry Johnson, the Montana Legislature's financial analyst.

However, a recent technological breakthrough has opened up the Bakken's massive reserves, and we now have access of up to 500 billion barrels.

And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL !!!!!!

That's enough crude to fully fuel the American economy for 2041 years straight.

And if THAT didn't throw you on the floor, then this next one should - because it's from 2006 !!!!!!

U.. S. Oil Discovery - Largest Reserve in the World

Stansberry Report Online - 4/20/2006

Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world.

It is more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction.

In three and a half years of high oil prices none has been extracted.

With this mother lode of oil why are we still fighting over off-shore drilling?

They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on earth.

Here are the official estimates:

8 times as much oil as Saudi Arabia

18 times as much oil as Iraq

21 times as much oil as Kuwait

22 times as much oil as Iran

500 times as much oil as Yemen and it's all right here in the Western United States !!!!!!

HOW can this BE? HOW can we NOT BE extracting this? Because the environmentalists and others have blocked all efforts to help America become independent of foreign oil!

Again, we are letting a small group of people dictate our lives and our economy. WHY?

James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East, more than 2 TRILLION barrels untapped.

That's more than all the proven oil reserves of crude oil in the world today , reports The Denver Post.

Don't think 'OPEC' will drop its price even with this find? Think again! It's all about the competitive marketplace, it has to.

OPEC is funding the environmentalists!!!

Got your attention yet? Now, while you're thinking about it, do this:

Pass this along. If you don't take a little time to do this, then you should stifle yourself the next time you complain about gas prices, by doing NOTHING, you forfeit your right to complain.

Now I just wonder what would happen in this country if every one of you sent this to everyone in your address book.

By the way, this can be verified. Check it out at the link below !!!!!!


http://www.usgs.gov/newsroom/article.asp?ID=1911

 

[SmokeShow]

Pretty wild.

 

[Dozerboy]

Thats nothing new like the report said 2006.

Not buying this arguement, if the oil industry can't survive on $50 dollar a barrel cude there is something wrong somewhere.

Who said that they couldn't? Cokers knows better then that I'm sure. The point is they have been building up infrastructure that was chasing $100 bbl oil. Now oils way down and they have to cut the excess which includes 1000s of jobs. I'm sure R&D has brought the cost down, but IIRC back in 08ish fracking could only be support by $80+bbl oil prices.

x2 I think they just need to settle for less that xx billion profit and they would be fine.

Like smoke said this is a stupid comment. I know its easy to hate on the big guys and thats the view the medias pushes, but its unjustified. You know the Fed. makes like 3 times as much $$ off oil then the people producing it like Shell ETC? For doing nothing and they spend the $$$ on their BS pet projects and welfare.

 

[coker6303]

The U.S. dollar is gaining strength, would anyone like to discuss business economics on a global scale? I feel like we are building up for a US financial crises all over again. Deja vu to 2007-2008

 

[SmokeShow]

It's up but I think it's false. It has just been masked or propped up by the friggin reserves pumping an unimaginable amount of more $$ into the system since about 2009-10 and largely in the form of friggin debt. Something will give sooner or later. It'll be devastating IMO.

 

[jc64]

Meanwhile, back at Scappoose, OR. ...

Fred M. and a Shell station.
jc

 

[duramaxzak]

Meanwhile, back at Scappoose, OR. ...

Fred M. and a Shell station.
jc

Hmm....did someone put $2.29 instead of $3.29? In MN we are still on the $3.19-$3.29 range.

 

[jc64]

Hmm....did someone put $2.29 instead of $3.29? ......

Nope, $2.29

jc

 

[OregonDMAX]

Nope, $2.29

jc

Saw 2.39 outside Eugene in creswell, OR so I can believe 2.29

I paid 2.99 for diesel for the first time in 6 years in Bend, OR

Barrel of crude dropped to $56/barrel so prices will only keep falling

 

[AKlowriderZ71]

Still $3.59 here in WY....

JC, you're making me homesick!

 

[coldLBZ]

Here in southern Alberta it is anywhere from $4.38 to $4.90 a gallon for diesel. Why did I move here?!?! Everything is expensive here from houses to a case of beer. One can't even afford to have fun! LOL!

Quoted for truth, northern Alberta isn't any better. I can't comment on the price of diesel though, haven't driven the Dmax since September

Edit: Just checked online, in my area diesel is any where from 4.28-4.70 a gallon. Reg. gas is about 3.10 a gallon.

 

[fajitatone]

Just filled up 3.15/gal Chevron. All the gas was sub $3.00 though.

 

[CarolinaHD]

Saw 2.99 today driving around town.

 

[AKlowriderZ71]

I just paid 3.37 today in my town. Next town over is usually .20 cheaper, but today it was 3.57 over there when I drove thru.

 

[56taskforce]

Fueled yesterday B-5 @JBLM for 2.91

 

[hondarider552]

2.70. Filled the Cruze up avg'd 44.8 mpg for 645 miles.


Seen gasoline for 1.74. :happy2: