Posted on 08/08/2005 10:40:08 AM PDT by newgeezer
Automakers are eager to sell you a diesel-powered vehicle. ... The new energy bill establishes a tax credit as large as $3,400 for diesels, matching the break allowed for hybrids.
Diesel-fueled vehicles do afford somewhat better mileage and may not require as much maintenance as gasoline-burners. But now and for years to come, the U.S. refining industry simply cannot produce enough diesel fuel to accommodate a significant increase in the number of vehicles that burn it.
At this year's auto show in New York, a DaimlerChrysler executive responsible for research and technology cited the success of diesel-engine automobiles in Europe while suggesting that these vehicles could gain a 5 to 10 percent share of the U.S. market. ...
European governments, working with automakers, have persuaded their citizens to replace gasoline-powered cars with diesel. They set tax rates to render diesel fuel cheaper than gasoline. But oil companies had no reason to invest in additional equipment for diesel production. Demand for diesel therefore bumps against the limit of supply. The marketplace will remedy such a situation, but it will be slow (because building new refining equipment takes time) and painful (because high-cost fuel hurts the financially weak the most).
... Europe has raised its diesel quality standards to such a high level that very few refineries in other parts of the world can manufacture an acceptable product. Interestingly, the United States can. During a few months last winter, U.S. refiners quietly shipped diesel to Europe. Due to our own demand, that could not continue.
These exports undoubtedly raised U.S. prices while they lasted. In this country, we burn diesel mostly for commercial transportation. As our economy expands, we will need more fuel for trucks and locomotives to transport goods. ...
(Excerpt) Read more at washingtonpost.com ...
Diesel ping.
Diesel causes a bigger smog problem.
Not that I am for government intervention in the marketplace, but is he suggesting that we shouldn't use more diesel here because then we will disrupt the plans of the Europeans, who we have been shipping diesel to?
If pork could solve all our energy needs then this bill sure takes home the bacon.
I seem to remember when diesel was cheaper than Gas. Imagine if that was the cool fuel to buy.
But biodiesel just might.
Mike
This deduction is nothing to sneeze at; depending upon your tax bracket, it would be the equivalent of reducing taxable income approximately $10,000.00 to $12,500.00.
If there's demand in Europe, it will raise prices here. Tax breaks for diesel mean US taxpayers are subsidizing keeping it here, rather than selling it to Europeans.
Buy a diesel, convert it to biodiesel, and make a deal with your local fast food restaurant to get rid of their leftover grease for them. It's a win situation all around. Well, except for the oil companies.
Yea, and now diesel is 20 to 30 cents higher than gasoline. Add in the fact that a diesel powered Dodge truck adds about $5000 to the price, where is the cost advantage? And just wait till you have to repair that diesel.
A passenger vehicle could perform very well with a 4-cylinder, turbo charged diesel and get 60 miles to the gallon. Diesel fuel can be made out of many different kinds of oil as well.
This is what puzzles me about the hybrids popularity. My family had a diesel Rabbit in the 70's that got 60 MPG. How is that not better than a car full lead core batteries and gasoline generator?
Just what do people think will solve this problem? It doesn't matter if our energy is generated from oil or dirt. If we cannot produce what the market demands, the prices will remain high.
Ignore the activists. Explore for resources. Harvest the new resources in the safest, cleanest way possible. Refine the resources as the market demands.
I don't understand why we continue to put up with this problem when we can do something about it, while at the same time continue to explore the possibilities for alternative fuels.
> The new energy bill establishes a tax credit as large as
> $3,400 for diesels, matching the break allowed for hybrids.
But does it override locales that presently restrict
sales of diesel cars, like CA, MA, ME, etc?
Diesel was cheaper than gasoline right up until we
bought our TDI :-(
It still is, on a per-mile basis, but increasing the
demand for diesel, without doing something about the
refinery bottleneck, is not going to help anyone.
And EPA Tier II (cleaner diesel) will only further
constrain supply.
Biodiesel is a nice way to recycle otherwise wasted
food oils, but I haven't seen a study that says it
makes overall economic sense (considering the energy
cost of growing a seed oil specifically for fuel).
"Yea, and now diesel is 20 to 30 cents higher than gasoline. Add in the fact that a diesel powered Dodge truck adds about $5000 to the price, where is the cost advantage?"
Combine the tax deduction with Section 179 accelerated depreciation, taking into account the considerably better fuel mileage. I'd say that there will be quite a few willing to take advantage of this, unless I'm misunderstanding how the deduction can be applied.
If pork could solve all our needs then West Virginia would be Heaven and Byrd would be King!
You probably have a point there. Those purchasing the diesel powered truck are probably pulling a load. I know quite a few that just own the trucks but don't pull anything with them. I don't see how they are coming out ahead.
Add to that, the fact that it will run on the used oil from a French Fry machine...
I'm sold on diesel.
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