Why diesel fuel is higher priced than gasoline...
One reason why diesel fuel today is higher priced than gasoline is because of the 2007 EPA mandate for ULSD fuel - and not because it costs more to produce.....
The 500-ppm sulfur pre-2007 diesel fuel was not usable in Europe, so it wasn't exported. Producing ULSD means this fuel is now acceptable for use in Europe, and a lot of the diesel fuel being produced today here in the U.S. is being shipped to Europe. The economics of "Supply & Demand" have simply fallen apart here in the U.S. as a way of pricing fuel. We could stop using diesel fuel entirely, and it wouldn't produce lower diesel fuel prices.
Read this 2/08 Reuters article, entitled: ANALYSIS-Exports keep U.S. diesel prices above gasoline
This is the result of our government regulations working for the American people...not... :(
Just my opinion - yours may vary....
I get the "open market" and "free enterprise system" arguments. I'm with you on that. However, a large percentage of the crude comes from public lands, and the U.S. is at significant risk, both foreign and domestic because of the many vulnerabilities associated with the importation of so much foreign oil.
Energy independence is a more significant factor in national security than say, super computers. Foreign sales of super computers are tightly controlled. Same with satelite navigation and inertial navigation equipment. Same with certain types of bio-medical research, radar absorption technology, aerospace technology, nuclear technology and on and on and on.... which are all produced by U.S. private companies.
We can continue to send $800B to our enemies every year to buy their oil, continue to run up the national debt and trade deficit, crush our economy due to high energy prices, reduce our standard of living to that in the third world - or we can become energy independent. Exporting oil and petroleum products push us farther away from that goal. We have enough resources right here at home to maintain current consumption levels for the next 100-200 years (depending on whose data you trust). I vote for energy independence... ;)
Jim
PS - The citizens of Montana were asked on a ballot initiative 2-3 years ago whether to buy the many hydroelectric facilities located here in Montana and make them a state owned/run operation. Electric rates were de-regulated sometime before that, and some believed electricity could become unaffordable to the average citizen. Remember the blackouts in CA and rising electric rates? I cast my vote in opposition to buying the facilities. Just like the hydroelectric plants, I believe in leaving the oil business in private hands, but with restrictions (i.e. the Montana Public Service Commission continues to play a part in establishing electric rates). The entire U.S. is a mighty big market in which to sell gas & diesel fuel.