Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Peter V who wrote (77301)	4/5/2008 11:54:51 PM
From: koan	Read Replies (1) of 116555

Thanks Peter. I guess I just do not understand how diesel relates to gas. My guess is that we have reached peak oil and the only practical alternative, in the short run, is using coal to make oil, ng and of course gas and other products. Isn't it cheaper and easier to make diesal and can't you use a lower qualtiy oil to make diesal? One of my trader buddies mentioned something about clean diesel hybirds I think, but I just do not understand enough about how engines work to know what he is talking about? Why not just produce diesel instead of gas if it is cheaper to make, uses lower grade oil and sells for a higher price?

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