Anybody hear about the Diesel fuel shortage coming? [LOCKED AND WARNINGS GIVEN DUE TO POLITICS]

[Rusty PW]

Will it run in a ecodiesel ?

Yea, it will run. Don't know what the higher sulfur content will do to the emissions. The CP4 might like it tho. Think it would be like putting leaded gas into a unleaded car.

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[Pescatoral Pursuit]

Note that red diesel can be a substitute for heating oil, but heating oil cannot substitute red diesel because of its high sulfur content which is bad for the environment.

They both get burned so what's the difference as far as "bad for the environment?"

 

[Rusty PW]

They both get burned so what's the difference as far as "bad for the environment?"

You got me.

 

[Maximus Gladius]

Our government and the people that control them are going to make fossil fuels more expensive and more difficult to get until they get us to buy in to electric vehicles. At that point in time driving for pleasure and driving something you actually want to drive will be gone and we will all be just doing the essentials of getting ourselves and families from point A to point B. Very sad.

I read through all these pages pretty careful, (I think I did anyway) and was wondering when someone was going to drop the phrase “green house gas reduction targets”. Member states have signed on and I’ll bet we’ve all have heard the phrase and we also see the push and lure to go electric.

Was even thinking about this when I got up this morning, wondering what a “target” met will look like for us all.

The birth pains of meeting these targets are not going to feel nice and a target can’t be implemented over night. So for now we adjust….slowly. Eventually we look at our Amish neighbours and will agree they were doing it right all along…except their horses and cattle fart just as much as everyone else’s ….and so the target will eliminate the diet that includes anything that farts for a cricket diet, like the cricket plant approved up here in Canada will become very useful …

So let’s look at Electric vehicles and their “clean, 0 green house gas” contribution to our planet”. Its been asked, “where does the power come from for these vehicles?” The manufacturer will tell you l, “just plug it in the wall”, and that’s where intellect stops.

So let’s chase the wires in the wall and we may find ourselves at a power plant running off oil and gas or coal or burning trees for this power. BUT where a population of electric cars putting out ‘0 green house gas’ emissions makes sense is that we now don’t have millions of vehicles polluting. We only have the factories, power plants and assembly lines that do.
We already have those plants, we have only eliminated the cars that pollute.

So if member states are pushing for 0 green house targets….well, the factories have to go to.

[edit- spelling]

 

[Lynn_F]

Diesel is a distilled product from crude but all crude is not the same. West TX Intermediate and Canadian crude are both lighter(~30 API) and sweeter (<sulfur/H2S) than Venezuelan/Russian crude which are ~15-20 API and high sulfur/H2S. The lighter/sweeter crude yield more gasoline and lighter end products (Propane/Butane/Ethylene) vs now banned crude which produce more VTB/GASOIL. These banned crudes were also substantially cheaper than other crude on the market. Those factors make it harder for refineries to keep their ULSD producing units (Hydrocrackers and Delayed-Coking units) full. Refineries like the one I work for also have to supplement ULSD units with GASOIL purchases that until February primarily came from Russia. All of these factors have reduced ULSD production in the US. The war in Ukraine and subsequent bans on Russian energy have also severely limited energy availability for Europe and therefore they pay much more for their primary fuel - ULSD. When most of the fuel is sold to the highest bidder, then prices everywhere else increase to meet/offset the demand. This problem has been gaining momentum through multiple admins/economic swings and will not go away any time soon.

 

[RomeyIII]

im not an economist but id think that earnings would meet projections, or even diminish, in a recession since consumer spending typically decreases. And considering my investment set is pretty broad its surely not representative of the bigger picture. All Im saying is that in an environment where the cost to do business is increased and inflation has decreased the value of the $, seeing profit reports HIGHER than projected makes it easier to believe that companies are taking advantage of the situation.

All good points.

But I am not sure consumer spending just decides to reduce fuel spending as easily. Still have to buy gas to get to work, still have to heat your house, farmers still have to collect their yields, shipping businesses still need to keep using fuel to sustain business, etc..

The other part of the equation for this particular industry is you have to INVEST heavily in "drilling" which is very speculative and involves losses. The industry knows the current regulatory environment is a hostile environment toward them with more and more "obstacles". I'll leave it at that.... so if these companies are not investing in "drilling" the expenses are lowered showing more profit. Hmmmmmmm.

 

[SuperUltraMan]

I read through all these pages pretty careful, (I think I did anyway) and was wondering when someone was going to drop the phrase “green house gas reduction targets”. Member states have signed on and I’ll bet we’ve all have heard the phrase and we also see the push and lure to go electric.

Was even thinking about this when I got up this morning, wondering what a “target” met will look like.m for us all.

The birth pains of meeting these targets are not going to feel nice and a target can’t be implemented over night. So for now we adjust….slowly. Eventually we look at our Amish neighbours and will agree they were doing it right all along…except their horses and cattle fart just as much as everyone else’s ….and so the target will eliminate the diet that includes anything that farts for a cricket diet, like the cricket plant approved up here in Canada will become very useful …

So let’s look at Electric vehicles and their “clean, 0 green house gas” contribution to our planet”. Its been asked, “where does the power come from for these vehicles?” The manufacturer will tell you l, “just plug it in the wall”, and that’s where intellect stops.

So let’s chase the wires in the wall and we may find ourselves at a power plant running off oil and gas or coal or burning trees for this power. BUT where a population of electric cars putting out ‘0 green house gas’ emissions makes sense is that we now don’t have millions of vehicles polluting. We only have the factories, power plants and assembly lines that do.
We already have those plants, we have only eliminated the cars that pollute.

So if member states are pushing for 0 green house targets….we’ll, the factories have to go to.

You’re right… Also there is pollution in the Lithium Mining, Production of those Batteries, and the even worse pollution from those batteries and the inability to recycle or dispose of them after their short useful battery lives have ended.
So far, Battery vehicles at their current levels of evolution have not been a good alternative over a gasoline/diesel that will actually pollute far less and exist far longer with less waste at the end of their usefulness.

 

[ShadowsPapa]

They both get burned so what's the difference as far as "bad for the environment?"

Quantities burned.
The number of gallons of diesel compared to heating oil? Ants and elephants.
HHO (home heating oil) use peaked in the 1970s and has dropped every year since. (Well, duh)
So while the use of diesel each year jumps - more vehicles, more miles driven, etc., heating oil consumption has dropped dramatically for 5 decades. Almost all heating oil used by homes is in the NE states, seriously more than any other place. (80-90% of it all?)
So, 3 billion gallons to heat homes, vs. 47 billion diesel fuel by U.S. transportation sector - you can see why it's regulated for one and not the other. Besides, stricter regulation of the HHO hits consumers directly vs. spread out over more gallons used by transportation. Home heating vs. transportation - IMO, home heating should win every time.
47 billion dirty gallons is badder than 3 billion dirty gallons used to heat homes in the northeast.

so if these companies are not investing in "drilling" the expenses are lowered showing more profit. Hmmmmmmm.

Yeah, people look at a number published in the media, a media that hates certain things anyway, and oh, that evil corporation! They have no clue what's involved in development, research, exploration (dry holes aren't free), and the regulations, fines, clean up costs.
In Alaska, even the snow that has any traces of anything on it has to be trucked away and dealt with properly. The regs are strict. (not saying that's bad, just that it's a fact of life)
There's taxes involved - anyone in business knows how capital investments work, equipment, and tricks that can legally be used to make things look better or worse.
And then those who are retired living off their 401K or annuities or whatever should be thankful those horrible evil greedy corporations make some money. If not for that, your alternative is social security. So much for owning a Jeep when you retire.
I was only able to retire because I worked for a company that had customers in the energy sector who made money and spent that on the equipment we engineered and the stock kept going up up up, split, and went up again. That evil corporation is the only reason I'm not still doing a 40+ hour a week for the man.
Like it or become a member of Xi's team.

 

[ShadowsPapa]

By the way, those old heating oil tanks make great pig roasters, BBQ grills or smokers after they are cleaned out.
Here's one modified to smoke a whole hog -

 

[Caraholic]

Just read something today about it

 

[Teqsand]

I'm sure they need to pad in more profit there somewhere... yay.

Profit comes from quantity sold... the Oil Co's make about .07 cents a gallon.... the state of calif makes almost 1.00 per gallon... calif uses about 50 million gallons a day, all that tax and have you seen the roads here, there is a reason we need 4x4's

 

[Teqsand]

its always funny to see stuff like this and think "man, theres no way. its gotta be outside factors ect. ect"

But then i start getting earnings reports from stocks and im seeing an average of %15-20 ABOVE projected earnings. Higher than expected earnings in a recession is always questionable to me and certainly lends its self to believing corperate greed is more rampant that wed previously be willing to believe.

Has driving increased since covid went away.... ya outside factors

 

[Teqsand]

Fuel retailers are doing well too.

We have probably all heard they only make pennies per gallon, but that is not true.

Diesel has a bigger margin than gas. Sometimes $0.50/gal or more on the retail price for a non-commercial consumer.

Prove your statement... because retailers have always made .05-.07 per gallon, why do you think station stopped providing full service and started selling food and shit, gas switched from being the primary product sold to being the secondary to the insundries a station sells....

 

[Teqsand]

Keystone was for offshore sale.

Ok it was for offshore sale, think about that for a moment, it would have filled a slot that currently is filled with production that could be used to lower overall prices.... but now that product will not see market

 

[Jteakus]

The question should be, "If the United States was a corporation and you were the CEO how would you address this problem"?

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