Monday, August 4, 2008

Today crude oil briefly got below $120 and closed at $121. ++++

MinnPost.com had an article that I submitted a comment for. It is being held for review before posting but it should get posted soon. The link than my spiel will be at the end of this posting.

I did some checking at http://fueleconomy.gov/ and in 1985 the Ford Ranger was offered with a diesel which was supposed to be a "dog". I compared it the gas 4 sticks and the diesel go 23% better mileage. Diesel used to be cheaper but it's now 20% more than unleaded regular so financially that is pretty much a "wash", especially with diesels requiring more service and maintenance.

I expect the diesel/gas spread to grow in the future for several reasons. In Europe, diesel cost ten to fifteen percent less than gas because of tax policy but more than half the cars being sold there are now diesel. Also there will be more diesel pollution requirements for things like sulfur levels and this will cost. Also, a gallon of diesel has substantially more energy BTU's than gasoline. Refineries are getting far better catalytic crackers that can convert heavier residual oils into lighter fuels. They can squeeze out more gallons of gas than diesel with the new "crackers".

Also, the public doesn't like a gas tax hike but they are less "reactive" to high fuel oil and diesel prices. (the same base fuel) Only a small percentage of people use fuel oil and high diesel cost is basically an "indirect tax" to the general public in the US.

That's my "spiel" for today. Below is the promised story link and the comment I submitted. They tend to publish but a moderator reviews.

http://www.minnpost.com/stories/2008/08/04/2819/no_bold_steps_on_gas_prices_--_at_least_not_in_the_us


So Air America claims that reducing the speed limit to 55 would end US imports? Hello!! We import 70% of our oil!
Here is a link to a list of imports by country. http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
Number eight is Iraq where we import a bit under half a million barrels a day out of total US consumption of 20 to 22 million barrels a day. Technically, an aggressively enforced 55 speed limit might reduce our usage equal to the amount we import from Iraq.
As for the claim in this article that vehicle "efficiency" was doubled after 1975 automotive efficiency "doubled" is misleading. The US production of vehicles before 1975 focused on the full sized large engine "boats". To give an example a modern day Crown Victoria police interceptor gets ten to twelve miles per gallon, not much better than the early 1970's "boat". The difference is mostly due to smaller vehicles.
Hybrids might save fuel but they have a relatively narrow "sweet spot" in use age. For example, I live and drive mostly in the city so I could benefit from a hybrid but I drive under 3000 miles a year and use under half a gallon of gas per day so the hybrid is not cost effective.
On a lark I checked the mileage of my 2005 Ford Ranger 4 cylinder "stick" (a poor persons hybrid) with the 1985 version. My fuel efficiency is well around 5% better. My 2.3 liter engine is far more powerful, with fuel injection, four valves per cylinder and double overhead cam but the MPG hasn't increased much in 20 years on the Ranger, which has used the same basic "platform" for around three decades. This makes it good for comparison.

No comments: