Discussion in 'The Coffee Shop ~ Chit Chat' started by 07XCSB, May 3, 2012.
Diesel prices are ridiculous, these days....
I do some work at the Chevron refinery and asked them why the high prices on diesel and they explained the supply and demand thing. That on a barrel of crude that only 15 to 20% of that goes for diesel and that the diesel is also the source for Jet fuel, kerosene and a few others that I can't remember. They said that with the mining industry using massive amounts that they are having trouble keeping up with the demand. I know from working in a Mine in Nevada that they used 160,000 gallons a day. One of the 300 ton Cat haul trucks burns 1200 gallons every 20 hours.
My father worked for Chevron for about 46 years and he has a different take. He said that supply and demand is only a fraction of it. The real answer? Look at there record profits over the last five years and the relation to cost of diesel to the consumer.
Yes demand has increased and so has the supply.
Add in all the diesel pickups that have been purchased and the increased number of Class 8 rigs on the road and you se the demand incresing but the supply is also increasing at the same level or higher The oil barons have simply used demand as an excuse. During the peak construction era diesel was at an all time high for demand yet the industry was OK with the cost of diesel still lagging gas by 40-50cents per gallon.
it simply comes down to a smoke screen as Chevron has benefited greatly from tax cuts and subsidies.
just look at major oil countries pump prices and relate that gas price to diesel. Politics created the problem and can solve the problem.
Yeah, I don't agree with all the tax cuts that the oil companies get, I think it's a load of crap. Something needs to be done about fuel prices and the gov't say that they can't do anything about it. What a bunch of crap, I think the reason they say that is most of the politicans are getting rich off of oil companies.
I don't trust politicans and think that they should make an age limit (75) and a term limit. It's time to get rid of some of the old guys that have been there a long time, it's time for a change.
Woo Hoo, So cool, took the camper out this weekend about 200 mile round trip and averaged 8mpg highway and backroads. I pulled my 9500lb camper uphill on the highway at 75mph and cruised along passing the big rigs. Screw good gas mileage and enjoy your truck
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