| Where Does Ths US get it's Diesel Fuel. |
| Written by Denise Deanison | |
| Saturday, 29 November 2008 | |
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In 1892 Rudolf Diesel invented what would become known as the diesel engine. This engine would forever change the automotive industry. The diesel engine is capable of functioning on modified vegetable oil or diesel fuel. In the United States crude oil is the most common ingredient in refined diesel fuel. Diesel fuel is most widely used by commercial businesses to deliver products to the market. Commercial machinery and farm machinery also use significant amounts of diesel fuel. In order to understand our economy it is important to understand the role diesel fuel will play in the future.
In 1892 Rudolf Diesel invented what would become known as the diesel engine. This engine would forever change the automotive industry. The diesel engine is capable of functioning on modified vegetable oil or diesel fuel. In the United States crude oil is the most common ingredient in refined diesel fuel. Diesel fuel is most widely used by commercial businesses to deliver products to the market. Commercial machinery and farm machinery also use significant amounts of diesel fuel. In order to understand our economy it is important to understand the role diesel fuel will play in the future. Diesel Fuel consists of different grades or types of distillates. The primary distillate used by the majority of diesel engines in the USA is No. 2. This distillate is also used as fuel oil for heating. Distillate No. 2 has a relatively low amount of sulfur. Standards for the sulfur content in diesel fuels were implemented in 2006. Ultra-Low Sulfur Diesel (ULSD) fuel replaced Low Sulfur Diesel (LSD) 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. A barrel of crude oil can produce many products including liquefied petroleum gases, heavy fuel oil, jet fuel, diesel fuel, gasoline and heating oil. Vegetable oil can also be used in conjunction with other ingredients to produce Biodiesel. Biodiesel can also be made from animal fats or recycled restaurant grease. This biodegradable fuel has proven to reduce the emissions of particulate gases. Diesel is used in almost all semi-trucks, delivery vehicles, trains, buses, boats, farms and constructionequipment. In the year 2007 75% of diesel fuel was used by on highway vehicles. The remaining 25% was used by off highway equipment such as construction and farming and motors in military, railroad, heating equipment and marine water crafts. In 2007 the United States imported approximately 4.5% of it's diesel fuel from Canada and the Virgin Islands. Unfortunately 66% of the crude oil used to produce the remaining percentage of diesel fuel was imported from foreign countries in 2007. Diesel fuel is transported primarily by pipeline, barge or rail to loading areas where it is loaded into tanker trucks and delivered to retail locations all around 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. The modernization of more and more countries has slowly increased the demand for crude oil over the past several years. Approximately two-thirds of the world's crude oil reserves are controlled by the Organization of Petroleum Exporting Countries (OPEC). OPEC controls production and sets a maximum production limit on 40% of the world's crude oil reserves. These limits and other factors around the world continue to create rapid price fluctuations in the price of diesel fuel worldwide. The Article Author: What has to happen to make the price of Diesel Fuel go up? Who can change the price of Diesel Fuel |
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