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14 comments on A gentle reminder

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ab3 on October 20, 2005 - 4:52am Permalink | Subthread | Parent | Comments top
Diesel is definitely the soft spot in our fuel dependency. Robert Bryce had an article about it on Salon.com last week (10/11/05) in which he discussed the reasons for diesel being in worse shape than gasoline.

The Europeans can lend us gasoline much easier than diesel because they have more slack in that market. Also, the new diesel regulations go into effect next June and require refiners to reduce the sulfur content from 500 ppm to 15 ppm. The pipeline companies, however, are going to limit the diesel they ship to 6 or 8 ppm because every time it moves from one tank or pipeline to another, it gains sulfur.

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Glenn on October 20, 2005 - 7:28am Permalink | Subthread | Parent | Comments top
Somehow I doubt that the sulphur regs are going to take effect if diesel is still over $3/gallon. "We can't afford to be good for the environment" they will scream. And the self-reinforcing cycles of oil dependence and climate change continue....
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bhyde on October 20, 2005 - 1:04pm Permalink | Subthread | Parent | Comments top
That is mostly a political question.  I've been thinking that if I was Damlier-Chysler I'd be very concerned about this.  The only fuel efficent card in their deck are the efficent European diesels.  So they, at least, should be one member of the oligarchy arguing for low sulphur.  The trucking industry, on the otherhand, is in a lot of pain.  Pain today is a very powerful political motivator.

I don't know if this is a technical question; if the refineries have already made the costly production commitments they may prefer for the regs to go into effect.

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ericy on October 20, 2005 - 8:13am Permalink | Subthread | Parent | Comments top

You are probably right here - I have been seeing the spread between diesel and RUL growing in recent days.  Right now diesel is $3.19 - RUL is $2.79.

I hear rumors that the introduction of ULSD will be delayed, but nobody can find out anything concrete.  I have a friend who is a reporter for a trade rag for truckers, and she was getting quite frustrated with the EPA because she couldn't get a straight answer about this from them.

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DonRobbie on October 20, 2005 - 12:26pm Permalink | Subthread | Parent | Comments top
The problem is the EPA has new regulations for heavy truck emissions coming online for the 2007 model year (which means May 2006). The Particulate filters and catalysts for the 07 engines require ULSD or else they will be fouled. At this point there is not any certainty to what happens to the warranty for one of these engines ($15k+) if non ULSD is used in it.

SO to bail on the ULSD requirement would also require bailing on truck emissions (after 5 years of R&D and the start of a changeover in production). Even if the new requirements go forward mixed availability of ULSD would be another reason for fleets to hold off on the new technology (already there is a massive pre buy going on with fleets loading up on new trucks this year so they do not have to buy new trucks until the tech is proven for a year or two)

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