Jinglebob
Well-known member
Allan's Blog
Bet On Biodiesel
Tuesday, 08 May 2007
Have you noticed that gas prices have skyrocketed while crude oil prices have flattened? Have you noticed that diesel is now considerably cheaper than gasoline? As I have previously written, ethanol is a bet on the continued dominance of the gasoline fueled engine. This is a bet that will lose. The future is diesel and diesel/battery vehicles and the oil companies know it. A conversion to European style small diesel cars would reduce our oil imports by the same amount as the President's newly enlarged ethanol program. The reason gasoline prices are skyrocketing is that American oil companies do not want to put any more money into gasoline-oriented refineries. The only new USA refinery on the drawing board is a diesel-only one. Europe, which has almost completely dieselized its auto fleet, has been sending us their surplus unneeded gasoline from their refineries. Now, they are retrofitting their refineries to only produce diesel. The end result will be even less gasoline available to American motorists and even higher gas prices even as oil prices fall. How wide will the spread between gas and diesel have to become for the mass exodus from gasoline motors to occur? I don't know, but it will occur. The bottom line is to bet on biodiesel and not ethanol.
Bet On Biodiesel
Tuesday, 08 May 2007
Have you noticed that gas prices have skyrocketed while crude oil prices have flattened? Have you noticed that diesel is now considerably cheaper than gasoline? As I have previously written, ethanol is a bet on the continued dominance of the gasoline fueled engine. This is a bet that will lose. The future is diesel and diesel/battery vehicles and the oil companies know it. A conversion to European style small diesel cars would reduce our oil imports by the same amount as the President's newly enlarged ethanol program. The reason gasoline prices are skyrocketing is that American oil companies do not want to put any more money into gasoline-oriented refineries. The only new USA refinery on the drawing board is a diesel-only one. Europe, which has almost completely dieselized its auto fleet, has been sending us their surplus unneeded gasoline from their refineries. Now, they are retrofitting their refineries to only produce diesel. The end result will be even less gasoline available to American motorists and even higher gas prices even as oil prices fall. How wide will the spread between gas and diesel have to become for the mass exodus from gasoline motors to occur? I don't know, but it will occur. The bottom line is to bet on biodiesel and not ethanol.