# Wall Street Journal Article On Diesel



## GoVols (Oct 7, 2005)

Interesting article in Wall Street Journal Online today regarding diesel fuel demand and pricing.

WSJ Article on Diesel

Condensed version: hang on, you ain't seen nothing yet!


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## Airboss (Jul 14, 2007)

Meanwhile, oil companies are reporting billions in profits. Congressional action is needed, but why would they intervene when it would only hurt their portfolios?


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## bradnbecca (Feb 12, 2007)

Airboss said:


> Meanwhile, oil companies are reporting billions in profits. Congressional action is needed, but why would they intervene when it would only hurt their portfolios?


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## Nathan (Jan 2, 2007)

Ok, so I'm truck shopping. Wonder what I should buy?


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## Sayonara (Jul 23, 2007)

Tough call Nathan. if a 5r or larger TT is in the future youll need the superduty. now its just a gas V-10 or diesel decision. to upgrade to the diesel in my SD it was about $9k total.

Tell you what. ill sell you 50% ownership in mine and we can swap who uses it each weekend..... it just sits in my garage otherwise.
How could you pass that up?


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## Nathan (Jan 2, 2007)

Sayonara said:


> Tough call Nathan. if a 5r or larger TT is in the future youll need the superduty. now its just a gas V-10 or diesel decision. to upgrade to the diesel in my SD it was about $9k total.
> 
> Tell you what. ill sell you 50% ownership in mine and we can swap who uses it each weekend..... it just sits in my garage otherwise.
> How could you pass that up?


It could also probably tandem tow to rally's right?!?!








Actually, I just looked up the lease price difference between the two (V10 vs Diesel). Still pays to get the oil burner.








I just wish there was a slightly smaller Diesel engine that could get better fuel economy. I doubt I'll ever really "need" 650 ft lbs.


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## Collinsfam_WY (Nov 9, 2006)

Airboss said:


> Meanwhile, oil companies are reporting billions in profits. Congressional action is needed, but why would they intervene when it would only hurt their portfolios?


I'd like to think that congress could "fix" the situation but alas - I have no faith in them whatsoever (either party). IMO a big chunk of the Govt. loves it just like it is now. It's a rosy outlook for them for sure. The more gas/diesel we buy, the more they line their pockets with taxes from each gallon sold. The govt. can't fix itself, much less anything else. The whole thing is hideous.

-CC


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## Collinsfam_WY (Nov 9, 2006)

Nathan said:


> Tough call Nathan. if a 5r or larger TT is in the future youll need the superduty. now its just a gas V-10 or diesel decision. to upgrade to the diesel in my SD it was about $9k total.
> 
> Tell you what. ill sell you 50% ownership in mine and we can swap who uses it each weekend..... it just sits in my garage otherwise.
> How could you pass that up?


It could also probably tandem tow to rally's right?!?!








Actually, I just looked up the lease price difference between the two (V10 vs Diesel). Still pays to get the oil burner.








I just wish there was a slightly smaller Diesel engine that could get better fuel economy. I doubt I'll ever really "need" 650 ft lbs.








[/quote]

/jogsnathansmemory - 4.4 Lion in 2010! I know this doesn't help you now =/ but the small diesels are coming.

-CC


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## hatcityhosehauler (Feb 13, 2004)

There is other forces at work, not just supply/demand and policticians wallets. Oil is traded primarily on the NY Commodities exchange, and is sold and purchased in US Dollars. As the value of the dollar drops, it takes more of them to purchase the same barrel of oil, hence the prices we see, I think today it closed over $109 a BBL. At least, that is what I read the other day in another article. If I can find it again, I will post the link here.


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## justinsnow0 (Feb 5, 2007)

I have a question. If you were to go diesel and do the vegtable oil conversion, does it have an effect on the horsepower and towing ability?

Of course if I were to do this then used oil will go up to 5 bucks a gallon too......


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## hatcityhosehauler (Feb 13, 2004)

mons02035 said:


> I have a question. If you were to go diesel and do the vegtable oil conversion, does it have an effect on the horsepower and towing ability?
> 
> Of course if I were to do this then used oil will go up to 5 bucks a gallon too......


I believe that bio-diesel will reduce emissions, but decrease mileage. It does have more lubricity than the ULSD stuff, but if the gov finds out your doing it (tank gets dipped or other ways), you will have to pay road use taxes. I don't know about HP/Torque ratings though.

Tim


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## NJMikeC (Mar 29, 2006)

That is the biggest horse crap article I ever read from WSJ in my life and I have read a lot.

Diesel is up $1.10/gallon this year versus same time last year.
Gas is up $.60 this year versus sam time last year.

Difference should be in a very cold winter which hasn't been the case. My January heating bill was the least it has ever been in 5 years in this house so for some it was colder but South of NY State it was a warm winter. Further more you can see that I have compared same "time of year " costs. That of course should have the price of winter Diesel all ready built into it and therefore this years much colder weather is worth $.50/gallon. BS!

With that in mind I can only say that they are just screwing diesel users and taking the profits from diesel that they lost in gas. You take gas up the same price percentage wise as diesel then you have an all out panic .

Essentially what they are doing is suckering us because you won't bitch as much about your increase in food prices or delivery charges on internet sales but you would absolutely freak when your gas is $3.50/gallon. Simple politics that is all. Taking it one step further how many internet sales companies are offering free shipping to incent you to buy from their swelling inventories? We have full recession here but you can't say that during an election year.

That and the author of that article would have you believe that we import oil but export diesel. Yeah right! What a bozo liar!

Once again don't believe everything you read!


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## fourwalls (Sep 21, 2007)

We of course just bought a stock dmax in oct. We get 15.3mpg right now. I was talking to a gentleman last night and he recommended we increase our intake and exhaust size. He had changed these 2 items and added a computer tuner and increased his mileage by 8 mpg. My DH is on the search to alter these items also. I expect by the end of next week to be riding in an altered truck. If it helps I will report back. 23mpg. sounds great for a 2500 to me. That is the only way I can think of to fight back is to use less and less fuel and let them set on their barrels.


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## Collinsfam_WY (Nov 9, 2006)

8mpg is err..."optimistic". Was he using a downloader as well? I have heard of a 3mpg gain but 8???? wow!

-CC


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## GoVols (Oct 7, 2005)

NJMikeC said:


> That is the biggest horse crap article I ever read from WSJ in my life and I have read a lot.
> 
> That and the author of that article would have you believe that we import oil but export diesel. Yeah right! What a bozo liar!
> 
> Once again don't believe everything you read!


Mike,

Yes, exactly that -- we do export diesel as crazy as it sounds! A good reference repository of data is the government's Energy Information Agency.
EIA Petroleum Data

A quick review of petroleum product exports shows that there has indeed been a 90% increase in overall refined exports since 1991 and even a 28% increase since January 2006. Specifically, the US exports of refined distillate in 2007 was over 7 million barrels, the highest level since 1995.

In addition, the data shows that while US refinery distillate yield has increased 3.5% since 1993, demand for US on-highway distillate has increased 29% during the same timeframe. While there may be some shenanigans going on, there is also a classic supply & demand dynamic in play. Refined motor gasoline is the primary product produced by US refineries. As such, the infrastructure is less prone to supply/demand constraints than distillate.

Like it or not, price is up because demand is out-pacing supply, and supply costs are going up. Economics 101.

Personally, I think we are tetering on the brink of a world-wide recession, with the US leading the way due to the credit crisis. When that happens, the oil prices will come down!


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## NJMikeC (Mar 29, 2006)

Huh I say, learn something new everyday. Never would have believed that about exports. I do read that site which is where I got my prices from but never as deep as you have.

All in all we are still getting ripped off.

So now they take the oil and export it for presumably more then they can sell it here for. What fiends and how could they call themselves American?

Thanks for furthering my understanding of the problem and great research. Guess you found the missing piece of the $.50/gallon increase.

Don't go write for WSJ though. Your too informed and too honest for that job!


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## Nathan (Jan 2, 2007)

GoVols said:


> Mike,
> 
> Yes, exactly that -- we do export diesel as crazy as it sounds! A good reference repository of data is the government's Energy Information Agency.
> EIA Petroleum Data
> ...


I think Economics is fastinating, but it burns you every time!!!


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## GoVols (Oct 7, 2005)

New refineries in this country will help, or additional investment to convert to distillate at existing refineries. If there is a profit motive, the refiners will invest in conversion, and it looks like it is beginning to happen now.

I also read somewhere that gasoline inventories are at a 15 year high, which is probably why the marketers can't take the price of gasoline higher.

If it makes you feel any better, gasoline in Germany, France and UK is around US$8.60/gallon, and diesel is around US$7.50/gallon.


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## NJMikeC (Mar 29, 2006)

Well then I just thought of something else. If they didn't export during the winter months then we wouldn't have the uptake in prices. I sure there is a reason why "they" can't do that but I'm sick of hearing "their reasons".


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## fourwalls (Sep 21, 2007)

collinsfam_tx said:


> 8mpg is err..."optimistic". Was he using a downloader as well? I have heard of a 3mpg gain but 8???? wow!
> 
> -CC


yea he was using a down loader and calling it a tuner. That is why i am researching it before investing.







I know BANKS brand is saying a 3-6 mpg increase and I have been skeptical. Most tell me it is a 3-4 mpg increase. But the big brands are so high priced.


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## LostHighway (Jul 23, 2007)

Don't forget too, all of those military vehicles running around in Iraq and Afghanastan. All military vehicles run on JP8/diesel.


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## Northern Wind (Nov 21, 2006)

Diesel all the way, more power and just sounds better! Ok just the fact that I don't have to pull over to the slow lane going up hills makes it all worth while.
Then again I may be biased I have had 11 gas and now am on my second diesel, I would never go back to gas, even if the price goes up, the trips will just become shorter.

Steve


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## JimBo99 (Apr 25, 2006)

Jingle bells, jingle bells,
Jingle all the way - 
Oh what fun it is to ride
In my big powerful diesel sleigh!

At the pump it takes alot more jingle these days! Well, I think the cost of all fuel is going up from here on out. China, India etc are the new bidders on the block and they have deep deep pockets from all the cash we have sent sent them for the cheaper goods at Wal-Mart and other discount stores (heck, almost all stores these days it seems). And the secret is that OPEC can't pump any more, they are at peak, and will decline in the years to come. And there hasn't been a major oil discovery that is economical in nearly 30 years. Something has to give! The price will go up and up. BUT - how will the price go up? To manage the price so the most people will holler the least - keep gasoline down as low as possible for the majority. Push the greater increase into diesel. (Diesel owners can afford it they figure. And businesses that use diesel will pass the on the cost to customers - like delivery services. And then who pays higher delivery services? We ALL do!!) So diesel users get hit twice, at the pump and at the retail store. Gas owners, you better count your blessings! And if you have a little change to spare, I'm starting a fund to help with my diesel fuel for trips this summer. Remember, it is more blessed to give than to receive!


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