Just a random musing. As EV’s become more popular, means less gas being used, means potentially lower prices since supply of gas should increase? Or do they just cut production and keep prices the same.
Wondering what will happen in the long term.
Just a random musing. As EV’s become more popular, means less gas being used, means potentially lower prices since supply of gas should increase? Or do they just cut production and keep prices the same.
Wondering what will happen in the long term.
Diesel is more expensive than gas, although less refined. Why’s that?
https://explorerrvclub.com/blog/understanding-how-diesel-fuel-is-priced-in-canada-the-usa-and-the-world/
The same will happen with gas as its demand dwindles.
less refined just means that it comes out as a lower fraction during distillation as it has longer carbon chains and a higher boiling point, it has no meaning regarding cost of the fuel.
and the article seems to have no idea what they are talking about as they make it seem like a refinery can choose what they produce while in reality they only separate whats already in the crude oil.
so if a refiner “chooses” to not produce diesel fuel all that means is they dont separate it out but simply sell it as lower grade fuel/heating oil.
for the NA market its simply the hen and egg problem, people dont like buying diesels a lot because of the availability in prices and that means refineries will just sell it as fuel/heating oil instead.
thats not the same problem as having a shrinking market as the market will shrink slowly and refineries can simply adjust what they sell the individual fractions as whenever they feel like it.
they will need to keep the refineries running anyways for kerosene and gasoline for many more decades so what name they give their diesel doesnt really matter much.