My neighbor is the president of a large oil pipeline. I talked with him last night about ULSD.

They convereted their two diesel refineries to ULSD last spring. Cost was over $300 million. And they really wonder if they will ever recoup it. Since they will not sell more diesel, the money spent just allows them to keep selling diesel.

I asked about having to clean the storage tanks and pipelines so the old tanks didn't contaminate the new ULSD. Some articles in the Denver Post indicated that was part of the current shortage problem. He said most of the refineries that had converted to ULSD were producing at 2 ppm sulfer. Considerable below the 15 ppm. So a small amount of sulfur contamination from pipelines and storage tanks wasn't enough to raise the sulfur content above the mandated 15 ppm.

He said they had added equipement to take the raw materials they normally made asphalt out of and make diesel fuel. They will no longer make Asphalt. (expect Asphalt prices to soar) This would increase their diesel production. He says they are forecasting the price of diesel to drop next summer. The current high price is due to shortage as refineries convert to ULSD. Capacity will increase as more refineries get converted to ULSD and more additional capacity is added. He said no new refineries are being built but EVERY exisiting refinery is using their excess profits this year to build more capacity.

Those of you worried about what ULSD will do to your engines. Probably have already had a tank or two of ULSD depending on your area.

 

Asphault prices are already going up. Municipal street repair budgets are going nuts.

My Brother-in-law is a G.M. for an aggregate and concrete / asphalt recycle co. His business is booming right now.

 

I find it hard to believe that oil companies are not making a bundle on diesel fuel. The spot price in August 2004 was $1.2535, August 2005 was $1.8685, and August 2006 is $2.208. All of those numbers are per gallon and before any taxes and trasportation fees are added.

Diesel demand last week was 3.906 million barrels per day while production and imports totaled 3.896.

One year ago the demand was 3.982 million barrels per day while production and imports totaled 4.191.

So I also think this demand being higher is a load of bull. Our demand and reserves have been trending higher than past years, but the price has almost doubled in the past two years. Now of course these numbers are for the USA. So the oil companies blame it on the Global Market and say there is a shortage.

I think we are all going to take it in the *** once the winter heating season starts to increase the demand. We never saw a price drop in the spring, but be assured we will see an increase this fall. Especially since the change to ULSD just happens to coincide with the peak heating season.

 

We are not going to turn this into a politically charged thread. While I could offer rebuttal to part of laredo7mma's thread, I will refrain from doing so as I hope everyone else will.

It is now time for us all (including me) to remember the topic at hand. Please review post # 1 and stay on topic.

 

Oops, sorry. I didn't realize that was political, my bad.

 

Is this delaminating happening to the 'plastic' tanks? I know this can be an issue when Bio-Diesel has been used in higher concentrations than Ford recommends. Is Bio-Diesel more readily available in New England? Interesting if it's an issue with ULSD. TransferFlow may get more business from this.