Fuel prices...
- Thread starter JamesTXSD
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El and Bill
New member
The fact that crude oil is denominated in US dollars, in international trade, also makes price fluctuations inevitable. The change in value of the US$ relative to other currencies becomes another very important variable.
So it isn't easy to make a simple judgement about prices - there are many factors, and this thread, discussing the factors, has been useful to expand our understanding about the price at the pump.
So it isn't easy to make a simple judgement about prices - there are many factors, and this thread, discussing the factors, has been useful to expand our understanding about the price at the pump.
flrockytop
New member
Westfield 11 said:
flapbreaker
New member
Not sure if this makes any difference or not but they only get 9 gallons of diesel out of a barrel of oil compared to 19 gallons of gasoline.
http://www.eia.doe.gov/kids/energyfacts ... ml#Howused
http://www.eia.doe.gov/kids/energyfacts ... ml#Howused
flapbreaker":328iz1hg said:Not sure if this makes any difference or not but they only get 9 gallons of diesel out of a barrel of oil compared to 19 gallons of gasoline.
http://www.eia.doe.gov/kids/energyfacts ... ml#Howused
This diagram only illustrates the amount of Diesel produced in the US based on the production characteristic of our refineries.
U.S. refineries serve a market demand heavily weighted toward automotive gasoline. European refineries are more focused on diesel fuel production.
LCO (Light Cycle Oil) and Fuel Quality
June 1, 2008
Demand for diesel in China is driving up prices for diesel fuel everywhere. U.S. Refiners are going where the money is, switching as much of their production as possible from gasoline to diesel. But without major refinery changes, only 2-3% of their production can be switched into diesel.
As they stretch this capacity to the limit, ULSD (Ultra Low Diesel) is expected to experience an increase in sludge and varnish at the end user level. Why? A little thing called LCO (Light Cycle Oil). Here is what your customers can do about it to protect their tanks from sludge and their equipment from varnish.
During crude oil refining, crude is heated under pressure and passed through a distillation column. Different fractions are drawn off at different locations in the column. Light gasses like Butane evaporate quickly (<90F) and are drawn off at the top of the column. Straight Run Gasoline is next, followed by Naphtha (which is gasoline that is sent to catalytic reforming to increase yield), kerosene, Light Gas Oil, Heavy Gas Oil and Straight Run Residue (800F+) is drawn off at the bottom of the column.
In the United States, most gas oils are fed to the cat cracker for gasoline production. In other countries, the bulk of the gas oils go to distillate fuel oil. In the U.S., the ratio of gasoline to diesel production is 55% gasoline to 12% diesel. The difference is that the U.S. with its large car population has a healthy appetite for gasoline production: the cat cracker, above all else, is a gasoline maker.
As the gas oils are fed to the cat cracker for gasoline production, the catalyst cracks the bulk of the molecules into gasoline. The other molecules are cracked into Light Gas Oil (LGO) and Heavy Gas Oil (HGO). The LGO goes to light distillate fuel blending (diesel, kerosene). The HGO goes to heavy distillate fuel (Bunker C, #6 Fuel Oil). The remainder is called Light Cycle Oil (LCO) and it makes up about 10% of the cat cracker yields. Because it doesn't crack well, it is sent back to the reactor feed where it re-cracked and recycled to extinction.
And therein lies the problem with American diesel fuel. Light Cycle Oil (LCO) is recycled into the reactor feed where it is cracked again. Eventually the LCO that does not crack is typically worked off into the Light Gas Oil (LGO) that is used to make light distillate (diesel and kerosene). Even small amounts of LCO will increase gum and varnish that typically plugs injector spray tips resulting in uneven fuel burn, loss of power and fuel economy.
Excessive amounts hurt thermal and storage stability and cause sludge buildup in the lines and can even plug filters, especially when it mixes with moisture in the fuel tank. LCO also reduces Cetane. LCO in diesel fuel increases the need to treat with Cetane Improvers.
Schaeffer Fuel Additives are one way to provide Premium Diesel that combats the effects of LCO in diesel fuel – eliminating gum, varnish and sludge build up. The Fuel Dr. can diagnose fuel problems and identify bacteria and moisture. Using Fuel Shock and Tank Dry periodically should be a regular program to provide clean and dry tank maintenance.
Go to:
http://www.usgs.gov/newsroom/article.asp?id=1911 and check out the oil in the dakotas. Time to buy that muscle car I always wanted.
http://www.usgs.gov/newsroom/article.asp?id=1911 and check out the oil in the dakotas. Time to buy that muscle car I always wanted.
lloyds":2ow4rxbf said:
Just to put that into perspective - assuming that we could actually recover the estimated 3.6 billion barrels of oil that is estimated to be there, at the current U.S. consumption of about 20million barrels of oil per day, that entire deposit is about 1/2 a years worth of oil. You might want to reconsider and stick with a prius or similar. :wink:
We bought diesel today in east Texas for $2.90. Alongside us at the RV lane at the Flying J was a couple who work for a drive-away service, doing RV deliveries. I asked how business was for them and was told, "Good. When the downturn hit the dealers, the banks hired us to deliver repo units to auctions." Not much of a silver lining there. She went on to say, "If some of the dealers and manufacturers could have held out until fuel prices dropped, they might still have some business. As it is, we've lost a lot of the good ones."
From my perspective just another indication of how the rising fuel prices put a major hurt on the already weakened economy. We saw plenty of RVs on the road today... hope they weren't all heading to auctions! :shock:
Best wishes,
Jim B.
From my perspective just another indication of how the rising fuel prices put a major hurt on the already weakened economy. We saw plenty of RVs on the road today... hope they weren't all heading to auctions! :shock:
Best wishes,
Jim B.
marvin4239
New member
I copied this from a trade publication.
Chevron Doubles Third-Quarter Earnings While Producing Less
SUGAR LAND--November 3, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--On October 31, Chevron Corporation (NYSE:CVX) (San Ramon, California) announced earnings for third quarter 2008. As is becoming a standard story for petroleum-production companies, 3Q08 brought significantly higher earnings compared to last year. Chevron reported a net income of $7.89 billion for the quarter, more than doubling 3Q07's net income of $3.72 billion, and up 32% from last quarter's $5.98 billion.
Income from Chevron's upstream segment rose substantially in both U.S. and international sectors. U.S. upstream income was up more than $1 billion, from $1.14 billion in 3Q07 to $2.19 this year. International upstream income rose to $4 billion, compared with $2.3 billion last year. Oil-equivalent production was actually down from last year by 150,000 barrels per day. Higher prices of oil and natural gas helped bring strong income and offset the estimated $400 million of expenses caused by Hurricanes Gustav and Ike.
"We are pleased to report that there were zero safety incidents associated with the evacuation of personnel from our offshore facilities; 3,500 personnel were safely evacuated for Gustav and 1,500 for Ike," said George Kirkland, Executive Vice President for Global Upstream and Gas. "We did sustain damage from the storms. Overall, there were 13 toppled structures, four leaning structures, and three missing well heads. The long-term impact of this damage on production is not great. It is estimated that between 6,000 to 10,000 barrels a day will be permanently lost."
Before Gustav, Chevron's production from the Gulf of Mexico averaged about 190,000 oil-equivalent barrels per day. "As of this week," said Kirkland, "total restored production is 55% of pre-storm levels. Of the remaining production to be restored, about three-quarters is dependent upon the timing of third-party pipeline repairs."
Industrial Info is currently monitoring more than $19.5 billion of Chevron's projects scheduled to kick off between now and the end of 2009 in the U.S., Canada, and Australia. In the U.S., one of Chevron's largest groups of projects involves additions to its refinery in southern Mississippi. The company plans to make several additions to the refinery, including a new hydrocracker and sulfur recovery unit. The projects have a combined estimated total investment value of $800 million and will begin construction next year.
Chevron Doubles Third-Quarter Earnings While Producing Less
SUGAR LAND--November 3, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--On October 31, Chevron Corporation (NYSE:CVX) (San Ramon, California) announced earnings for third quarter 2008. As is becoming a standard story for petroleum-production companies, 3Q08 brought significantly higher earnings compared to last year. Chevron reported a net income of $7.89 billion for the quarter, more than doubling 3Q07's net income of $3.72 billion, and up 32% from last quarter's $5.98 billion.
Income from Chevron's upstream segment rose substantially in both U.S. and international sectors. U.S. upstream income was up more than $1 billion, from $1.14 billion in 3Q07 to $2.19 this year. International upstream income rose to $4 billion, compared with $2.3 billion last year. Oil-equivalent production was actually down from last year by 150,000 barrels per day. Higher prices of oil and natural gas helped bring strong income and offset the estimated $400 million of expenses caused by Hurricanes Gustav and Ike.
"We are pleased to report that there were zero safety incidents associated with the evacuation of personnel from our offshore facilities; 3,500 personnel were safely evacuated for Gustav and 1,500 for Ike," said George Kirkland, Executive Vice President for Global Upstream and Gas. "We did sustain damage from the storms. Overall, there were 13 toppled structures, four leaning structures, and three missing well heads. The long-term impact of this damage on production is not great. It is estimated that between 6,000 to 10,000 barrels a day will be permanently lost."
Before Gustav, Chevron's production from the Gulf of Mexico averaged about 190,000 oil-equivalent barrels per day. "As of this week," said Kirkland, "total restored production is 55% of pre-storm levels. Of the remaining production to be restored, about three-quarters is dependent upon the timing of third-party pipeline repairs."
Industrial Info is currently monitoring more than $19.5 billion of Chevron's projects scheduled to kick off between now and the end of 2009 in the U.S., Canada, and Australia. In the U.S., one of Chevron's largest groups of projects involves additions to its refinery in southern Mississippi. The company plans to make several additions to the refinery, including a new hydrocracker and sulfur recovery unit. The projects have a combined estimated total investment value of $800 million and will begin construction next year.
I'm sticking with the muscle car, or maybe a really nice class A. Go to
http://www.post-gazette.com/pg/06095/679602-28.stm
http://www.post-gazette.com/pg/06095/679602-28.stm
matt_unique
New member
I'm pulling my boat for the season on Sunday. Gas prices have dropped to $2.39 in my town and I'm thinking about taking advantage and filling my tanks. I usually prefer not to have full tanks for winter storage (thus avoiding full tanks of "older" gas at the start of next season) but I'm considering it this year. I'm considering it this year for my 5 months lay-up. I always add Stabil of course and they claim it will preserve gas for 12 months.
For those who usually do not fill for winter storage, are you considering the same?
For those who usually do not fill for winter storage, are you considering the same?
Matt-
I just filled up the Sea Ray (120 gal), and the C-Dory (36 gal.) will be refilled before it goes back into the lake for the winter.
Considering the same for the pontoon boat (18 gal.), jet ski (12 gal.), and motor home (90 gal.).
But life's a gamble: What if gas is $1.49 during the "recession" next Spring?
Who knows? Would any of us have guessed couple of months ago gas would be cheaper by the day right now?
Joe. :disgust
I just filled up the Sea Ray (120 gal), and the C-Dory (36 gal.) will be refilled before it goes back into the lake for the winter.
Considering the same for the pontoon boat (18 gal.), jet ski (12 gal.), and motor home (90 gal.).
But life's a gamble: What if gas is $1.49 during the "recession" next Spring?
Who knows? Would any of us have guessed couple of months ago gas would be cheaper by the day right now?
Joe. :disgust
flrockytop
New member
Sea Wolf":2sfl2yli said:
When we go into full depression, you may not even be able to get it.
Roger
marvin4239
New member
I've noticed a real upswing in the amount of crusiers passing by my house on the ICW in the last 10 days. Typically this time of year we see alot heading south but the last month had been real slow. It's as if this cruisers were laid up somewhere waiting for some relief in the fuel prices as there's a steady stream at the moment.