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Old 11-07-2014, 09:44 AM   #1
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Diesel fuel demand to decline after 2015

Promising news for us with diesels. Hope the link works...hard to do on my phone.

U.S. Diesel Demand to Decline After 2015 - Top News - Clean Diesel €“ Diesel Technology - Top News - Green Fleet Magazine
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Old 11-07-2014, 10:56 AM   #2
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All that means is once again the Federal Government will again raise the tax on diesel. It used to be cheaper than gas until they started raising taxes at every level of production.


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Old 11-07-2014, 11:42 PM   #3
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It should be cheaper than gas. More gallons of diesel in a barrel of oil than gallons of gas. Also diesel is not as refined as gas. It is cheaper to produce.
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Old 11-07-2014, 11:59 PM   #4
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That article is misleading. Take note, it says global demand will continue to increase, that controls supply and pricing. We are not an island, but rather a participant in the global economy.
When diesel fuel was cheaper than gasoline, about 60% of a barrel of crude oil was usable. Today, about 95% is usable due to advancing technology. This makes everything derived from that barrel of crude more expensive to produce.
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Old 11-08-2014, 05:11 PM   #5
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Quote:
Originally Posted by Duoglide1 View Post
All that means is once again the Federal Government will again raise the tax on diesel. It used to be cheaper than gas until they started raising taxes at every level of production.


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Agreed.
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Old 11-08-2014, 07:13 PM   #6
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The federal tax on diesel has remained at 24.4 cents per gallon since 1993. States have varied their rates almost every year.
Diesel pushed ahead of gasoline in retail cost as a result of supply and demand. Only a little over 9 gallons of diesel can be refined from a 42 gallon barrel of crude.

Since 2004, the number one consumer of diesel was the U.S. military. Also in FY 2004 the annual US Military consumption was 144 million barrels annually. That's almost 50 million more than when the U.S. was at peace.

DurIng WW 2, General Patton's 3rd army had about 400,000 men and used about 400,000 gallons of gasoline a day. In 2005, our military had about a third as many troops in Iraq but used 4 times as much fuel.

During WW2, almost every ship world wide was either coal fired or used heavy bunker C to fire their boilers. Today, we have a hand full of nuclear powered ships but most are powered by a GT Compressor using a grade of jet fuel or diesel. Every truck, tank, or other vehicle used is also diesel.

Getting off my soap box now. Imo, if and when we return to a peaceful world, the price of diesel will again slip below the cost of 83 octane gas.
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Old 11-08-2014, 07:26 PM   #7
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Nice chart Bailiff, thanks for posting.
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Old 11-08-2014, 07:30 PM   #8
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Quote:
Originally Posted by bailiff View Post
The federal tax on diesel has remained at 24.4 cents per gallon since 1993. States have varied their rates almost every year.
Diesel pushed ahead of gasoline in retail cost as a result of supply and demand. Only a little over 9 gallons of diesel can be refined from a 42 gallon barrel of crude.

Since 2004, the number one consumer of diesel was the U.S. military. Also in FY 2004 the annual US Military consumption was 144 million barrels annually. That's almost 50 million more than when the U.S. was at peace.

DurIng WW 2, General Patton's 3rd army had about 400,000 men and used about 400,000 gallons of gasoline a day. In 2005, our military had about a third as many troops in Iraq but used 4 times as much fuel.

During WW2, almost every ship world wide was either coal fired or used heavy bunker C to fire their boilers. Today, we have a hand full of nuclear powered ships but most are powered by a GT Compressor using a grade of jet fuel or diesel. Every truck, tank, or other vehicle used is also diesel.

Getting off my soap box now. Imo, if and when we return to a peaceful world, the price of diesel will again slip below the cost of 83 octane gas.
Attachment 78532
Great info, thanks
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Old 11-08-2014, 07:42 PM   #9
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It should be cheaper than gas. More gallons of diesel in a barrel of oil than gallons of gas. Also diesel is not as refined as gas. It is cheaper to produce.
But diesel fuel contains ~13% more BTU/gal than gasoline. What you're actually buying is energy so it makes sense for more BTU to cost more. The fact that it is a less refined product is irrelevant; the marketplace determines the value of the commodity.
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Old 11-09-2014, 04:54 PM   #10
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Don't forget that plastic we all love comes out of that gal of crude as well. As you refine more products out you wind up with less of the less refined product.
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Old 11-09-2014, 07:02 PM   #11
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Bailiff, agree the chart is informative. Hard to connect the increase in fuel prices to military usage. In WW2 and the Korean (50's) war period, fuel cost went from 5 cents/gallon to 20 cents... Military personnel totalled 12 million in 1945, 3.7 mil in 1953 and presently less than 1,300,000.

However vehicle registration and usage has increased by 3.7 million vehicles per year since 1960. About 275 million vehicles in U.S. alone... Diesel use in passenger vehicles has significantly increased.
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