Re: gas and fuel costs

From: Mark B. Anderson (mark@aasurplus.ca)
Date: Sat Nov 19 2005 - 06:21:36 PST

Hey Sonny and the rest.
up here the O/O of trucks are paying 60 cents a litre at the pumps were I
pay $1.03 a litre at the pumps for my regular truck and when I run colored
fuel I pay 48 cents a litre.

that's the facts from my town..

Mark
----- Original Message -----
From: "Sonny Heath" <sonny@defuniak.com>
To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
Sent: Saturday, November 19, 2005 8:16 AM
Subject: Re: [MV] gas and fuel costs

>I want someone to tell me why the truckers are NOT complaining about the
>price of fuel like they always did before?????
>
> Sonny
>
>
> ----- Original Message -----
> From: "Ryan Gill" <rmgill@mindspring.com>
> To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
> Sent: Saturday, November 19, 2005 1:14 AM
> Subject: Re: [MV] gas and fuel costs
>
>
> At 8:16 PM -0700 11/18/05, Kirk Thompson wrote:
>>Technically:
>>The way I understand it is simply supply and demand.
>>
>>Fuel oil, Diesel, and kerosine (listed in order from lower grade to
>>higher) are actually by-products of the different stages of the molecule
>>cracking process that makes gasoline. These fuel oils are actually not
>>intentionally made. Gasoline is what is desired to be made in the refining
>>process and since diesel is really just a by-product, when there is a
>>strong demand (more vehicles using diesel) and there is not a large supply
>>(because if there is plenty of gasoline, you don't need to make more and
>>therefore no more diesel is made), it drives the cost up.
>
> Kerosene and Fuel Oil are thicker, Gasoline is
> more aromatic. Diesel is a mix of several
> (benzine included) aromatics that are nearly the
> same as Kerosene. The refining process will make
> a given amount of each, however, the process can
> be tweaked by additions of other chemicals to
> crack different molecules and make more or less
> of a given amount of fuel.
>
>>Personally:
>>I think we are getting screwed by Big Oil. Record profits for the last 10+
>>years and 2005 being the best in history.
>
> As I understand it their bulk of profits are from
> the massively increased demand for crude oil in
> India and China. The refined fuels are made
> mostly in the US with some being made in Mexico
> and Canada. Europe has been selling us some
> gasoline because they've been increasing the
> number of diesel powered cars spurning a growth
> in the need for diesel and a lessening of
> gasoline. The US market has increased use of all
> fuels. Refined fuels are a very small part of
> their market.
>
> Competition will drive the prices back down. The
> fact that we have a new refinery being built for
> the first time in 20 years should help to. It'll
> be a state of the art facility which should give
> it an edge. The DOE web page has a lot of
> information on the market trends and why the
> prices actually get driven up.
>
> see http://www.doe.gov/engine/content.do?BT_CODE=PRICESTRENDS
>
> One key thing to remember is that fuels and the
> raw crude are bid on based on the prices and
> expected price increases. If prices are expected
> to go up, companies will bid on lots of fuel to
> guarantee supply, this will drive the price up a
> bit but will also at the same time limit the use
> because it becomes more expensive. If the supply
> is refreshed quickly, then being locked into the
> price for the higher fuels more or less hurts the
> company who has to sell at that price. The same
> goes for bigger and smaller fuel stations
> depending on the cycle time of their stock. More
> cycle time and they'll be stuck with the higher
> price because that's what they bought it at.
> They'll try to sell it at the lower price.
> There's a Citgo around the corner from me that I
> bought fuel from before I knew better. They're
> charging 3.59 a gallon for diesel. The Quicktrip
> that's 3 exits up I285 is selling it at 2.35. The
> Quicktrip gets their diesel in in large lots
> because they have 16 Truck sized pumps (master
> slave units) and they are an in town truck stop.
> --
> --
> Ryan Gill rmgill@SPAMmindspring.com
> ----------------------------------------------------------
> I speak not for CNN, nor they for me.
> But I do work there and still like the company.
> ----------------------------------------------------------
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