Good News for All Of Us - Less Than $2.00 Diesel

[EdHale]

I just got back home to Atlanta last night after driving down to Savannah and Jacksonville. I saw diesel for $1.96 in Jacksonville just off of I-95 and at $1.97 on I-75 in south Georgia. Now if it will just keep going!!!

Ed

[Mark Rinker]

Yeah, right into the negative. :)

I am thinking big oil should put money back on our debit/credit cards, in exchange for the a$$ kickin' they gave us last summer!

[rustyk]

Diesel here in the FL Boonies dropped from $2.199 to $2.059 in the past few days. When it hits $.999 a gallon, I'll fill up again. :D (That is as soon as I sell my share in That Certain Bridge!)

[EdHale]

I agree Mark, but I'm not holding my breath.

Ed

[afp2007]

Diesel here in my area of British Columbia, Canada is now about 6 cents cheaper than gas (but still about $4.00 Cdn for an imperial gallon). First time I have seen diesel cheaper than gas for several years!

[paoutdoorsman]

I'd like to see it cheaper than gas here in south central PA, but it still has a little way to go for that.

[tommac95]

We are all enjoying the price break. The price of petrol worldwide collapsed last summer largely in the wake of the worldwide recession ... which was largely caused by our financial mismanagement , but also abetted by the record-high fuel prices.
In fairness to the MidEast oil profiteers , they (primarily Saudi Arabia) made efforts to increase output to meet demand and soften prices somewhat more than a year ago.

I must emphasize two points:
(I) The 'BigOil' interests are largely at the mercy of those -- primarily foreign governments in the Mideast and LatinAmerica -- who control 90% of the petroleum supply. Big , corporate oil interests may figure significantly in the USA, but it has been decades since they were in control worldwide.
(II) The precipitous fall in world oil prices is very much a mixed blessing. Most US oil exploration requires prices above $45/barrel to be profitable. Much of the Canadian TarSands production -- is on 'hold' until prices surge again. T-Boone Pickens' plan to build windmills to displace natural-gas-fired utility electricity (and use the natural gas in diesel over-the-road trucks) is not moving forward until oil rises above $70/barrel.

Two observations follow:
(I) Practically every time the price of oil spiked in the last 40 years , productive capacity increased to meet the demand; then the price slumped below levels necessary to pay off the investments. Over this period the US's dependence on foreign oil has dramatically increased, and our national balance-of-payments has been an increasing trade deficit.
(II) We now have Affordability, Security , and CO2/GlobalWarming/ClimateChange issues to address , and low prices will not help ... unless we use a carbon tax {While It is Cheap}
to pay for the required investments.
T m
A relevant article--
http://www.nytimes.com/2009/03/15/business/15drilling.html
Business
As Oil and Gas Prices Plunge, Drilling Frenzy Ends
By CLIFFORD KRAUSS Published: March 15, 2009
Lower energy prices are ending ambitious exploration, but some fear a shortfall when demand picks up.

[trbankii]

Tanked up for $2.13 a gallon yesterday.

I agree with tommac - lower prices aren't necessarily a "good" thing as it just puts the inevitable off for another day.

[More Power]

I must emphasize two points:
(I) The 'BigOil' interests are largely at the mercy of those -- primarily foreign governments in the Mideast and LatinAmerica -- who control 90% of the petroleum supply. Big , corporate oil interests may figure significantly in the USA, but it has been decades since they were in control worldwide.
(II) The precipitous fall in world oil prices is very much a mixed blessing. Most US oil exploration requires prices above $45/barrel to be profitable. Much of the Canadian TarSands production -- is on 'hold' until prices surge again. T-Boone Pickens' plan to build windmills to displace natural-gas-fired utility electricity (and use the natural gas in diesel over-the-road trucks) is not moving forward until oil rises above $70/barrel.


Tom, This is why the U.S. needs to be independent of foreign oil, and why we need a U.S. energy market, that is based on U.S. supply & demand.

Cap and trade, carbon taxes, carbon emissions credits and so on are primarily being proposed as a means for government to expand taxes (control) on energy - in my humble opinion - not about global warming. Has anyone heard about the snowstorm in the Sahara desert?

I do agree with you that energy needs to be priced at a point that encourages alternative energy development. It also needs to be priced at a point that encourages more domestic petroleum/coal/shale/natural gas development. For example, coal to oil programs require $45-55 a barrel to be cost effective.

Jim

[Freightliner3]

Fueled up today! $1.84 for Diesel & 1.84 for Gasoline in Stacy Minnesota.It's been years since gas and diesel were the same price.When on the road we burn 900 gals.every 6 days.I pay cash for fuel to get the points at Flying J.
I need a lot less cash than a year ago.

[GeeDubya]

Diesel here in the high desert of CA is $1.91. Cheaper than regular gas. It's been a long time since this has happened.