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

To: Peter V who wrote (169554)	12/6/2008 8:25:50 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Oil is refined into two primary fractions, - the distillate portion for diesel, heating oil, and jet fuel, - and the lighter fraction refined and reformed into gasoline. Refineries could be built which break the oil down completely and synthesize it into diesel, but this would be truly expensive. As an example, think of the premium you pay for Mobil 1 synthetic oil. Diesel is taxed less in Europe as a policy, so it costs less than gasoline at retail. Diesel actually costs more than gasoline in Europe just as it does here. It does seem hard to believe, but if the U.S. had the same percentage of diesel cars as Europe does, it would disrupt diesel and jet-fuel pricing everywhere around the world. Once the U.S. eliminates the fuel oil market and builds out additional rail infrastructure, then diesel makes more sense. .