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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (169501)	12/6/2008 4:27:46 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

The U.S. has a problem with diesel automobiles. To migrate cars from gasoline to diesel would require: A.) homes which use fuel oil to migrate to natural gas or electricity; B.) a significant portion of long distance transportation to migrate from trucks to rail. Without A and B, increased diesel use by automobiles will further increase the price premium of diesel over gasoline. While increased diesel and fuel oil price will tend to decrease the use of trucks and fuel oil for heating, it also limits the sale of diesel automobiles to eccentrics, so a conversion from gasoline never occurs. Also keep in mind that the U.S. tends to export diesel and similar distillates while importing gasoline, due to the preference for diesel as an automobile fuel in other nations. For these reasons I don't think diesel powered cars are going to be much of a solution for the U.S. Refineries could be built to synthesize distillate-like fuel from gasoline, but then you're talking about really expensive fuel. I've mentioned this periodically, but you quickly forget. .