Re: Once apon a time

Posted by Bob M on December 07, 2005 at 08:14:28 from (151.190.254.108):

In Reply to: Once apon a time posted by MARKLOFF on December 06, 2005 at 21:26:13:

Mark - A couple thoughts:

1 – Re. that diesel is now priced $.40+ more than gasoline: It is simply free market forces at work. The demand for diesel - and it’s twin sister fuel oil - has increased dramatically over the past several years. Look at the sheer numbers of tractor trailers currently on the interstates compared to 10 – 20 years ago. And here in the northeast the large number of coal fired generating plants now converted to burn fuel oil. Consequently demand for this fuel has skyrocketed. Oil companies are merely charging what the market is willing to pay.

Here’s an analogy: Bottled water. The contents of a 16 oz bottle of product costs the manufacturer a fraction of a cent. Yet people willingly pay $1.25 for a 16 oz bottle - that’s $10 gallon – for tap water! But do you hear anyone complaining that the bottled water industry gouging the public? Nope - they're merely charging what customers are willing to pay.

2 – Re. high compression gasoline engine for tractors: Unfortunately fundamental thermodynamic differences between the Otto cycle (spark ignition) and the Diesel cycle prevent even the highest compression ratio gasoline engine from ever approaching the fuel efficiency of a diesel.

Beyond that, the price of the high octane fuel necessary to run a gasser at 11 or 12:1 compression is already insane. (100LL – 100 octane – aviation gas at the local FBO is $4.31/gal this morning). Pretty hard to compete when diesel is running $2.67 across the road!

--

Don’t misunderstand my position here. I’m as bent about high diesel prices as anyone (I purchased a diesel P/U just as diesel prices began to take off a year ago.) But we’re living in a competitive, free market economy. Stuff like this happens.

Replies:

• Re: Once apon a time dhermesc 09:51:09 12/07/05 (1)
  • Re: Once apon a time Bob M - yes indeed! 10:28:36 12/07/05 (0)

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