Where Does Ths US get it’s Diesel Fuel.
Filed Under (Cars and Trucks) by Denise Deanison on 29-11-2008
Tagged Under : automobile;truck, biodiesel, Cars and Trucks, crude oil, crude oil prices, diesel fuel, diesel fuel prices, economics, emissions, engine, fuel, mileage, oil prices, opec, sulfur, transportation, Trucks, Vehicles:Trucks-SUVS
Originally designed in 1892 to be used in the compression ignition engine named after it’s inventor Rudolf Diesel. Diesel Engines have the ability to run on a wide variety of fuels, such as diesel fuel and modified vegetable oil. The most commonly useddiesel fuel is refined from crude oil. This fuel is most widely used by commercialbusinesses to deliver goods to the market and to fuel some commercial machinery. Due to its effect on the economy it is important to understand how the fuel is produced.
Diesel fuel is produced to different levels of distillates or grades. Distillates are simply liquids that have been distilled or refined to a certain grade. The most common distillate used by diesel engines in the United States is No.2. This fuel can also be used for heating. Distillate No. 2 is used because it has a low amount of sulfur. Due to new regulations effecting sulfur content in diesel fuel Low Sulfur Diesel (LSD) fuel was replaced by Ultra Low Sulfur Diesel (ULSD) fuel.
Low Sulfur Diesel fuel contains a maximum of 500 parts per million (ppm) sulfur. Ultra-Low Sulfur Diesel fuel contains less than 15 ppm. By 06/01/06 80% of the vehicles on the highway must be ULSD. By 12/01/2010 100% of vehicles on the highway must be ULSD. It has been estimated that almost all diesel fuel used in the USA will be ULSD by 2015.
Crude oil can be used to produce products such as heavy fuel oil, jet fuel, gasoline, heating oil and diesel fuel. Biodiesel is another fuel that is created using diesel fuel, vegetable oil and other ingredients. Biodiesel significantly reduces the emissions of carbon monoxide and hydrocarbon gases.
The primary fuel used in delivery vehicles, trains, buses, boats, semi trucks, and construction equipment is diesel fuel. Vehicles on the highway used 75% of diesel fuel in 2007. Off-highway equipment such as motors used in railroad, military, farming and construction used the remaining 25%.
The United States imported approximately 4.5% of its diesel fuel from foreign countries In 2007. Canada and the Virgin Islands were the major contributors. However 66% of the crude oil used to produce the diesel fuel was imported from foreign countries in 2007. After production most diesel fuel is transported either by rail, pipeline or barge from the refineries to gas stations across the country.
Many people remember when gasoline was cheaper than diesel fuel. Since September 2004 that has not been the case. The increase in demand and the decrease in production has created this situation. The United States, China and Europe continue to need more and more fuel. At the same time production has gone down in the United States because of the transition to ULSD regulations.
Factors that contribute to price fluctuations include cost and supply of crude oil. As more countries become more modernized their demand for distillate fuels increases. The Organization of Petroleum Exporting Countries (OPEC) sets a maximum production limit on 40% of the world’s crude oil. OPEC controls approximately two-thirds of the world’s crude oil reserves. This means that international news effecting OPEC countriesmay have significant effects on the production of crude oil. Diminishing the supply while demand continues to skyrocket.
