FishOnOne wrote:
ShinerBock wrote:
FishOnOne wrote:
ShinerBock wrote:
FishOnOne wrote:
ShinerBock wrote:
what I was getting at was how much it will go up due to the new regulation just like the switch to USLD increased costs.
How much will it go up with this change?
Not sure, but I would imagine it would be similar how much the switch from LSD to ULSD increased the costs for us. The refineries that make this current fuel will have to upgraded for the added hydrotreating process needed to remove the sulphar down to acceptable levels. This will go in to the cost per gallon until the capital is recouped.
Then there is the loss the refiners will take when the pump the ULSD through pipes and tanks that carried LSD contaminating it with higher than acceptable levels. This is fuel would probably be sold as loss. The other issue is the added corrosion that ULSD has on tanks and pipes due to its higher water solubility.
Lastly are the extra additives to bring back the lubricity of the fuel. All these things will cause the price per gallon to increase, but I am not sure how much.
The reason I asked was because your statement sound like you knew precisely how much it was going to go up.
Again I don't subscribe that this change will have a significant impact.
Noted, but I know people who said ULSD would not cost more than LSD diesel back before we switched in 2006. Then diesel went from being below gas to above it.
As far as the financial impact, I am just going based on what the US EIA's petroleum report about the cost increases of LSD to ULSD. The report went into more detail as to what caused the increases and the amount per gallon increase each caused. I by no means am an energy or petroleum expert, but report did have some solid facts.
There appears to be increasing pressure for the diesel suppliers to meet the "Top Tier" standards for diesel fuel which many fear will increase diesel prices, but I think ExxonMobil with their new "Diesel Efficient" meets these standards, but didn't increase the price.
Factor in possibly something a from left field .Saudi Arabia may decide have revenge over any possible sanctions
