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Unregistered
Join Date: Aug 2000
Location: a wretched hive of scum and villainy
Posts: 55,652
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This is a non-issue in the long term and will soon correct itself and I'll explain why:
We currently do not have the capability of making enough diesel to meet our demands and importing diesel is getting more expensive, but that will soon change.
Refineries are run by smart people who need to keep the place profitable or they will be out of work. the profit on refining gasoline is almost non-existent right now, but diesel is very profitable. Guess what? we're working our tails off to try and increase diesel capacity.
This morning I submitted a recommendation and engineering package to get an additional 15,840 gallons per day of diesel production from our diesel hydrotreater, for almost free! The billable cost for this modification will be under $2000. If I don't get a serious atta-boy out of this I'll be ticked.
I figure in 6 months to a year the refining industry in the US be able to produce enough to supply almost all our diesel demands and nearly eliminate the need for imports. I think we're importing about 1.4 mil gallons a day or something like that now.
So ... pretty soon there will be plenty of diesel and the price will again fall below the price of regular unleaded. The only thing that would prevent that from happening is if the price over-seas remains high enough for it to be more profitable to export the finished diesel.
I figure the two markets should just about balance out.
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