GM Go Green; Ethanol? (Page 2)

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Bit of a hijack, but still on topic... Why has the cost of diesel shot up so high? It used to be 60 - 75% the cost of gas now it is more like 110 - 125% the cost. I'm not a scientist I'm a MBA but this geek speak has me very intrigued. I saw the GM commercial the other night and thought the same thing... Is this REALLY an answer or is GM just trying to look good in a time where American automakers are doing very poorly...

the curious thing to me about it is that when i bought my hybrid 2 years ago, everyone i talked to thought i was weird. its not nearly as radical as the gm thing. (insted of those commercials they should use that money for OTHER things. they might not be bankrupt of they spent a little better; i esp loved the "should we cut our dividand?" YEA YOUR BROKE!) my hybrid is a honda so i know it has good life expectancy, im not sure i would cross over fuel type on a GM car.

Edited by tyrant 2006-02-15 12:51 PM

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There are a few different contributors to the higher diesel prices.

1. Heavier, more sour crudes - many of the crudes that unit designs are based on were the lighter, sweeter crudes that required little processing and cleaned up rather easily - these are not as readily available any more. The heavier, more sour crudes that are available decrease unit capacity and require more processing. Thus higher cost

2. New Government Regs - In June of this year, most of the US refiners are required to produce Ultra Low Sulfur Diesel (ULSD). ULSD is considered to be 15 ppm sulfur at the pump. Current spec for on-road diesel is 500 ppm sulfur. In the past, the 500 ppm was easily attainable and if the product was slightly off spec it could be blended with diesel that was well below the spec. Now there is no room for error with ULSD. Either the diesel makes spec or it has to be treated again.

The treating to get to ULSD is much more severe (requiring more hydrogen, longer residence time in the reactors, and higher pressure units). So to make ULSD, the refiners are building and starting up units this year. You the consumer get passed along the cost of building these units and the extra utilities and hydrogen demand that come along with it.



There are other factors such as the oil companies want to see higher margins, etc, but those are two good reasons.

Hydrogen can't be written off completely. But we will need a basic science breakthrough for a H-economy to become reality. Work related to biological breakup of H has promise.

And the Room Temperature Superconductivity is out the door before you even get the words out your mouth. You'll need a breakthrough a million times bigger for RTSC to work.

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i know how we can get it. everyone email all the christians u know and have them pray for it!