So You Think Gas Costs a Lot?

[atlaw4u]

Over the past five years, U.S. demand for highway diesel has been rising at triple the rate of gasoline.

Matthew L. Wald - NY Times - May 18, 2008

INCREASING its longstanding appeal to mileage-conscious drivers, diesel fuel has for years cost less than gasoline, and even as recently as last summer the two were no worse than equal in price. Since then, a gallon of diesel has become more expensive than unleaded regular — now 16 percent more and poised to go higher still.

Both fuels are up steeply this year because of the cost of crude oil, which has doubled in the last year and is now around $3 a gallon. But why is the price of diesel, distilled from the same raw ingredient, growing faster?

It’s because higher prices affect demand for each oil product differently, and diesel is “the one product the world really wants,” said Lawrence J. Goldstein, a director of the Energy Policy Research Foundation, a nonprofit group financed by oil producers, refiners and marketers, with some government help.

The price spread has attracted the attention of Congress. This month, John Felmy, chief economist of the American Petroleum Institute, an industry trade association, testified before the highway subcommittee of the House Transportation Committee. “U.S. overall petroleum demand, including demand for gasoline, has flattened,” he said. “However, in the U.S., demand for diesel has remained strong.”

He added: “This follows a long-term trend here and around the world. Over the past five years, U.S. demand for highway diesel has been rising at triple the rate of gasoline.”....[Read More]

[Xringer]

Since home heating oil is about the same stuff, I sure hope the spring time is about here in the northeast.
Have not needed the heat on in over a week now. We just spent about $3 on oil to take showers this morning.
If we don't need to heat the house again this 'Spring', we might skate by using around 50-75 gallons for the rest of the summer.

We are using the cut-off switch on the boiler for hot water on-demand. Almost every time we turn it on, that's another 1/2 gallon gone.

If we have an extra cold 08-09 winter, there might be a lot of people around here that want to head on down to the Sunbelt.
(I've been eying Texas for about 40 years now).

[Bruce]

Wow. I've had the heat off since March, and it only takes .13 gal to heat up water for the dishwasher.

[jamtee]

"He pointed out that several refineries had lost money in the last quarter and thus were cutting back operations, further restricting diesel supply, although gasoline inventories are ample."
Let's see, ample supply of gas, refineries reducing production, which means less demand for crude oil. Yet we see record prices for gas, diesel and crude.
Every time an oil industry expert tries to explain why prices or high they keep make the case for price gouging.
Oil exec's complain it cost more to produce oil, and yet their profits continue to grow by double digits. But there is no gouging!!

Sorry getting off the soapbox.

[PaleMelanesian]

Originally Posted by Xringer

(I've been eying Texas for about 40 years now).

It was 90 degrees the last two days.

[bomber991]

Originally Posted by PaleMelanesian

It was 90 degrees the last two days.

Do you remember the last time you had to wear a jacket? I think it was like the first week of March.

[Xringer]

Originally Posted by Bruce

Wow. I've had the heat off since March, and it only takes .13 gal to heat up water for the dishwasher.

We actually don't need hot water for our dishwasher, since it has Temp Boost modes.
(Of course that increases the electric bill)


We have had the thermostat off since around the middle of April.
But on those few 50 degree mornings, we turn on some ceramic space heaters or the boiler.
If we were still working, we would be up and off to work on most mornings.
But being retired, and hanging around the house on most mornings, it sure is nice to be warm.

Using 0.13 gals! WOW! I put a 1.0 GPH nozzle on for the summer and figured I was doing okay. Maybe I should try out a 0.5 GPH nozzle.

--------------

You Texas residents sure got the good life.. I wish I was down there where it's warm (or even HOT).
But, I'm married to a Boston girl and will likely be moving back home when I'm inside a pine box..

Yeah, I remember wearing a jacket last week, when we went for a morning bicycle ride.
I don't care what calender says, if I'm getting goose bumps, I put on my jacket!

[Radio_tec]

Originally Posted by Xringer

(I've been eying Texas for about 40 years now).

Sorry for piling up on you. You're welcome here anytime but we turned our A/C on about 1½ weeks ago and we will likely not shut it off 'till end of September or early October. With the thermostat set at 80º F. we'll likely pay about $325.00 per month in utility costs. The good news is that natural gas is still relatively cheap and all homes in Texas, to my knowledge, are heated with it. Most modern apartments use electric heating. Ouch!

Austin and Dallas fair far worse when it comes to heat but the good news is Dallas is off sever water restrictions after a several good rainstorms broke a 5 year drought they had. Perhaps bomber 991 could respond to whether Austin is still in water restriction due to drought. Also, are swamp coolers feasible in Austin?

[mparrish]

As Peak Oil takes its toll, the south will fare better in the "heating vs. cooling" debate, given that Northern heat is primarily a result of oil/natgas inputs, while Southern cooling is primarily a function of electricity with large non-oil/natgas inputs.

But make no mistake, once we are all gone, and oil is depleted, and coal/natgas starts to go, and electricity is still available at reduced demand, you will see a reverse migration back to temperate regions..........to places where people lived 200 years ago..........New England / Mid-Atlantic / Midwest / Northwest Pacific.

Our grandkids will be depopulating Austin in 2100 for areas which average 55F (not 75F) and require much less overall energy to heat and/or cool.

But yeah, for now I'm glad I'm AC intensive instead of Gas Heat intensive.

[Robert Lastick]

Originally Posted by jamtee

"He pointed out that several refineries had lost money in the last quarter and thus were cutting back operations, further restricting diesel supply, although gasoline inventories are ample."
Let's see, ample supply of gas, refineries reducing production, which means less demand for crude oil. Yet we see record prices for gas, diesel and crude.
Every time an oil industry expert tries to explain why prices or high they keep make the case for price gouging.
Oil exec's complain it cost more to produce oil, and yet their profits continue to grow by double digits. But there is no gouging!!

Sorry getting off the soapbox.

No, Joe, don't you DARE get of that soapbox! America needs to hear from people like yourself exactly what has been happening to them for decades.

You see, to me, this article, like so many many before it, is the Auto/Oil Cartel's way to steer us toward greater profitability for them. We MUST remember one FACT when reading these articles.

THE COST OF GASOLINE AND DIESEL IS FIXED BY THE AUTO/OIL CARTEL. It has been for decades. It does not fluctuate by capitalistic supply and demand.

Trying to make sense out of Terry Slocum's statement, “There’s really no excuse why we’ve got this shortage of capacity, which in turn is driving prices far higher than for gasoline,” is futile. Reading between the lines, Greg Martin, a General Motors spokesman,
tells you why it does not make sense for America to go to diesel engines for higher MPG. He says;

1. "While they may have a big edge in fuel efficiency, their cost efficiency, in cents a mile, is shrinking". Translation. We are fixing the price of diesel and you will not see any advantage to buy diesel engines, I guarantee it.

2. "Some auto makers (certainly not the big 1/3) are preparing to sell diesel-powered passenger vehicles". Translation. We have not been keeping high MPG European diesel vehicles out of the country for nothing. We make more money selling gasoline than diesel (Each 42-gallon barrel of crude oil yields about 19 gallons of gasoline, according to the Energy Department, and about 10 gallons of diesel fuel and heating oil combined). We don't care what our price fixing does to the economy, we are in this for the money.

3. "So is it a good idea to buy a diesel"? asks Greg, the GM spokesman? “Right now that would be problematic.” Translation. Trust me on this. You will not see economic advantage from a diesel engine as long as we continue to fix the price you pay.

And how are they able to fix the price? A fly on the wall of the special interest group / lobbying conference room could tell you all about that. He might also be able to tell you about why we have no high MPG cars now when we need them so desperately.

Move over, Joe. I guess we are going to have to share this soap box!