Posted on 10/23/2004 6:32:11 PM PDT by Roper2
I'm new to FR and from what I've been reading so far, there are quite a few resourceful individuals that spend a lot of time here and seem to be pretty well informed. I'm from Iowa (hick from the sticks, yes) and my business is centered entirely around agriculture. My big question is, can anyone give me a legitimate reason why the diesel prices have shot through the roof over the past month? It's a bi-product of gasoline, therefore should be cheaper than gas, right? Nobody has been able to give me any reasons and ladies and gentlemen this is not going to be hurting just me in the months ahead, guess where all your food comes from? Can someone help me out here? We're now at $2.25 a gallon. By the way, sorry for Iowa's choice in 2000, I think the majority is now seeing the light.
Are you having a bad day? Do you need a hug or what? Smile a little, Bush will win.
I'm sure.
I'm happy to see that more people are coming here to learn about the truth and to discuss interesting subjects. I'm glad we are not losing people to DU.
I think that a lot of these new people are DUmmies in cognito.
About what? The bad day, the hug, or that Bush will win?
good diagram! It helps to show my point!
I'm Gone_Postal nice to meet ya
That might actually be worth it.
College in Alberta - Where? Is that Canada? Just wondering -
I believe it is one of those conspiracies - :) (Yep, has to be)
We had gas cars - switched to diesel because it was less in price. The price went up. Went back to the regular gas car. The price of gas went up over diesel.
Now diesel is going over gas - could it be to just confuse the people about what type of car to purchase - or to get them to purchase just one kind only - The mysteries we run across in life -
Why do they keep changing "places" -
When hurricane Ivan hit the Gulf of Mexico, it disrupted a 80 mile section of the pipeline. In some instances, the pipeline was buried under as much as 20 feet of sand and silt. Since Ivan, not one gallon of crude has come from the Gulf. News reports are that every inch of the pipeline has to be put back into place and inspected before pumping is to resume, for the fear of a damaged pipeline could mean ruin for the aquatic life if the proper procedures are not taken to prevent spillage. As for diesel, who knows, I only know that as a truck driver, I am paying way too much and not being able to charge a proper surcharge to the shipper or receiver.
Thank you, Roper.
I agree.
Yes, it's in Canada. All the more reason why I love this country. It was a means to a beginning.
Not only gas and diesel and home heating oil come from crude oil. Products like asphalt, plastics and literally 100's of others come as bi-products of crude oil. What's scary is that 85% of the bi-products are recyclable, but as a nation of waste, we see all these lyong on the roadside, and when the liter crews clean up, this materials go to the landfills, instead of a place where they can be recycled.
They have done more to CHOKE growth of the power/energy/oil industry than most people can imagine. We use to have plenty of high paying oil field workers. Not any more.
There are oil wells sitting idle in Southern Illinois. We use to live up there, when the oil industry dried up in the early 80's we had to leave to have find work in Memphis. We go back a couple of times a year to visit kin and it is a little no growth town sans good paying jobs.
Also out of that barrel comes kerosene, jet fuel,diesel, lubricants, various specialized chemicals, base materials for some plastics and vinyl, and God knows what else.
Then there are taxes. The next time somebody is bitching about how much the oil companies make on a gallon of gas, inform them the main profiteer off gasoline sales is the government. According to the analyst where I found this information a couple of years ago (Lundberg, IIRC), the eeevul Big Oil companies operate on an average 7% profit margin. And in a lot of states, like here in Tennessee, diesel taxes are higher that those on gasoline.
Maybe it had to do with stockpiles, I don't know, but for some reason diesel price increases have, until just recently, lagged a few weeks behind gas.
I hope this jumbled up explanation helps. Next time ask me what time it is, and I'll tell you how to build a (very bad) watch:-)
"diesel prices have shot through the roof over the past month? It's a bi-product of gasoline, therefore should be cheaper than gas, right?"
It's not a byproduct, it's just another product made out of crude. The crude prices have been higher, so diesel prices have been higher. Since diesel engines are used in agriculture, rail transportation, and semi trucks, retail food prices will trend higher over time.
"The next time somebody is bitching about how much the oil companies make on a gallon of gas, inform them the main profiteer off gasoline sales is the government."
Well put. Same can be said about tobacco products in many US states.
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