Re: DML Gas Prices

From: andy levy (andy-dml@levyclan.us)
Date: Fri Sep 02 2005 - 21:12:37 EDT


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On 9/2/2005 12:42, Jason Bleazard wrote:
|>As far as I can determine, of the amount of crude oil consumed in
|>the US, gasoline accounts for a tad over 40%, and diesel/heating oil 20%.
|
|
| That's interesting. I would have expected diesel to be used more. It
| goes in every bus, train, semi truck, ship, piece of construction
| equipment, etc. There may be more cars on the road, but cars don't have
| hundred or thousand gallon fuel tanks.
|
|
|>So it would seem that diesel is in much less demand than gasoline, plus it
|>is less refined and thus should cost less to produce. Yet it is quite
|>often
|>as expensive (or more expensive) than gasoline. This is something that
|>has
|>puzzled me and unfortunately I just don't know enough about the situation
|>to be able to explain it.
|
|
| Economy of scale, maybe?

More applications demanding the product. Aside from cars/light trucks,
what uses gasoline and has no other possible fuel choices?

Aside from bus, trains, large trucks, ships, construction equipment,
farm equipment (wait till you see what these fuel prices do to food
prices) and home heating oil, what uses diesel? (it's a longer list,
isn't it?)

Gasoline users have much more flexibility in deciding whether to consume
gasoline, and how much in a given day, than many diesel consumers. They
can carpool, work from home, not make that extra trip, etc. But the bus
has to run (else we use a lot more gasoline in cars, except for the
people who use the bus because they can't afford a car). The farmer has
to harvest his crop. The family next door has to heat their home.

- --
- -andy

http://home.rochester.rr.com/alevy/dakota - andy-dml@levyclan.us
- --------------------------------------------
"Whatever Adam does, do the opposite and you'll be fine"
        -Bob Tom
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