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O/T....ya know what i don't get....

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Dairy Farmer in

03-20-2008 17:56:29

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diesel prices! last time i bought fuel it was $3.99 a gallon...BUT isn't diesel i by-product of making gas? diesel used to be much cheaper because it's a byproduct ...if i'm correct.
just ranting
DF in WI

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bhc41051

03-21-2008 11:55:12

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

I'm sure this has been brought up before, but when I was in high school (1979), I cut tobacco for 7 hours and made $14, stopped on the way home put 5 gallon in my rust bucket 69 F-100 (12 MPG) and filled up a 5 gallon can to put in my Uncles 77 Row Crop for custom bailing job I had...That left me with $4 in my pocket. Gee I sound like an old fart....

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MarkB_MI

03-21-2008 04:27:45

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

Diesel is not a "byproduct" of gasoline. Now in the old days, you only got so much gas, so much kerosene, so much lubrication oil, so much asphalt, etc. out of a barrel of crude oil. But for many years (since the '30s) refineries have "cracked" crude oil to get whatever distillates they want. So if they want to make more diesel, then they might produce less gasoline or vice versa. It all comes out of the same barrel of crude; the refinery decides what to make.

Since diesel is a higher energy fuel, it is only reasonable that it be more expensive than gasoline. That is, you can make more gasoline than diesel out of a barrel of crude.

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mulvey

03-22-2008 07:09:54

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Re: O/T....ya know what i don't get.... in reply to MarkB_MI, 03-21-2008 04:27:45

been in the refinery for alot of years, gotta say i dont agree with ya on this totally

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flying belgian

03-21-2008 19:11:05

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Re: O/T....ya know what i don't get.... in reply to MarkB_MI, 03-21-2008 04:27:45

Yes but the cost of the crude is the cheap part. The refining is what costs money and there is less refining with diesel so it should be cheaper than gasoline.

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Mathias NY

03-20-2008 19:16:19

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

It is important to keep in mind that diesel is a byproduct of making gasoline. That means that for a given amount of gasoline, there will only be a certain amount of diesel. The ratio of diesel powered to gasoline powered vehicles is changing, meaning demand for diesel is increasing faster than the demand for gasoline. So it only makes sense that the price of diesel is rising faster.

Also it is important to remember that home heating oil is actually diesel fuel. This is what causes the diesel prices climb in the winter months.

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farmer boy

03-20-2008 18:47:36

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

I don't get why they bother with gas if it takes less crude to make a gallon of diesel and diesel has more energy in every gallon. Really, who cares, complaining doesn't get you anywhere.

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Don L C

03-20-2008 19:03:26

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Re: O/T....ya know what i don't get.... in reply to farmer boy, 03-20-2008 18:47:36

Europe is full of diesel....many American cars, trucks and tractors that are gas here are diesel over there..... ...Don

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Don L C

03-20-2008 19:03:25

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Re: O/T....ya know what i don't get.... in reply to farmer boy, 03-20-2008 18:47:36

Europe is full of diesel....many American cars, trucks and tractors that are gas here are diesel over there..... ...Don

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Mike (WA)

03-21-2008 08:39:53

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Re: O/T....ya know what i don't get.... in reply to Don L C, 03-20-2008 19:03:25

Ditto Central America- all kinds of cars and SUV's with diesel engines. I especially liked the Gallop "Exceed" taxicab that we chartered for a day to take us across the country- it was a little Hyundai SUV with a Mitsubishi diesel- after much calculation and difficulty with translation, we figured he got about 45 MPG with it.

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bva

03-20-2008 18:36:31

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

Consumer uses gas. Supplier uses diesel. So the consumer gets to pay for both while thinking they are getting a deal on gas.

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ScottyHOMEy

03-20-2008 18:19:55

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

It's all a move to drive down demand. The gov't and the analysts say as much when they allow that prices are expected to drop in May due to falling demand.

It's their only choice right now. We have no more refinery capacity to deal with increased demand. It's been 20+ years since a new refinery was built in this country because no one wants one next door, and the existing refineries have only been able to manage incremental increases in capacity.

Yes, diesel should be cheaper. It takes less crude to make a gallon of diesel. And there is a limit to how much gas they can get on a first run out of crude. But they "crack" diesel and other heavy distillates to make more gas. The last thing they want is gas lines.

The price is only loosely linked to the cost of production. The supply and demand curves are what are driving the relative prices of gas and diesel. As for the rising cost of either, you have demand, the falling dollar used to buy the crude . . .the list goes on.

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Old Roy agiin

03-22-2008 16:55:42

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Re: O/T....ya know what i don't get.... in reply to ScottyHOMEy, 03-20-2008 18:19:55

Being an old fuel-gas -oil delvery driver.My quesstimations are diesel is a less refined oil therefor should cost less, kerosene, AKA [jet fuel]both considered heating oil,the price ranges are compleatly out of wack. We have 5000 plains in the air at any givin time burning 3500 GPH that is the reason WE have to pay so much more To heat, run farm equipment, and drive trucks.I'm not shure I think a barrel of crude is only 42 gal takes a lot to make road tar, roof coatings,creosote,fuel oil, kerosene, jet fuel, charcoal lighter fluid,gasoline,and cigarette lighter fluid. Did I miss anything????

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buickanddeere

03-21-2008 12:52:28

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Re: O/T....ya know what i don't get.... in reply to ScottyHOMEy, 03-20-2008 18:19:55

Iving oil already has the largest refinery in St John New Brunswick on the East Coast. They are currently in the process of more than doubling production. Everbody is cheering as it means more good paying jobs.

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in-too-deep

03-20-2008 18:03:44

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

I wonder the same thing. I would understand if the price went up right along with gasoline, but why is it nearly double the price of gasoline now?

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rrlund

03-20-2008 18:02:26

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

No. I wondered the same thing. Thought we might be shooting ourselves in the foot with ethanol,thinking that without making gas,we were making less diesel fuel. I ran it past the editor of Michigan Farmer. She said she had been to a fuel conference and they can tweek the refineries to make more or less of either.

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davpal

03-20-2008 23:43:57

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Re: O/T....ya know what i don't get.... in reply to rrlund, 03-20-2008 18:02:26

Yeah, but she's so cute anybody would believe anything she said anyway!

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rrlund

03-21-2008 06:50:13

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Re: O/T....ya know what i don't get.... in reply to davpal, 03-20-2008 23:43:57

Well,that's just a bonus.

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Ch0ck430C

03-20-2008 17:59:37

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Re: O/T....ya know what i don't get.... in reply to Dairy Farmer in WI, 03-20-2008 17:56:29

You should rename this place. Call it

All We Do Is Bittch About Gas Prices Board

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bob18

03-20-2008 18:09:23

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Re: O/T....ya know what i don't get.... in reply to Ch0ck430C, 03-20-2008 17:59:37

yep thats what happened when they took of the politically correct forum

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