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Author Topic: Diesel on the Rise  (Read 2925 times)

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Offline Ken

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Re: Diesel on the Rise
« Reply #20 on: April 01, 2018, 02:50:54 PM »
The price of diesel is making a substantial dent in the bottom line.  What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70  I'm not very smart but the math doesn't add up ::)
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Online Banjo picker

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Re: Diesel on the Rise
« Reply #21 on: April 01, 2018, 07:07:35 PM »
Exactly Ken.  I try to stay informed as to whats happening on the world scene, and I have not heard any real reason why diesel is making the jump. Gas too for that matter.  We do have one gas burner car and a wielder.  Banjo
Cooks AC 36--Prentice 210C--Morgan edger--Kubota M7040 with loader--Case 580 K with extendahoe--Case 850C dozer--Int 1700 series twin cylinder dump/log/flatbed truck--logging arch--2 Logrite mill sp.--Cat claw sharpening system--And a bulldog to make sure it all stays here.

Offline coxy

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Re: Diesel on the Rise
« Reply #22 on: April 01, 2018, 08:16:59 PM »
My off rd was $2.09.9 last July with a $.10 per gallon discount for cash and home heating oil about $.50 more due to taxes.
I'm sure I'll pay substantially more this yr.
My 150 gal tank usually lasts me the year between the mill, tractor and RTV.
I use very little at the house.
pete there should be NO tax on heating oil but there is a tax on off road 

Online Southside logger

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Re: Diesel on the Rise
« Reply #23 on: April 01, 2018, 09:22:59 PM »
The price of diesel is making a substantial dent in the bottom line.  What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70  I'm not very smart but the math doesn't add up ::)
Supply and demand, the refineries are taking profits and pushing prices as they know the economy is strong and folks are going to pay, basically it is inflation, only for some odd reason here in the US we don't include energy costs into the inflation equation, so the official story is we don't have any inflation.  
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Offline Matt601

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Re: Diesel on the Rise
« Reply #24 on: April 02, 2018, 01:44:06 AM »
The price of diesel is making a substantial dent in the bottom line.  What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70  I'm not very smart but the math doesn't add up ::)
Supply and demand, the refineries are taking profits and pushing prices as they know the economy is strong and folks are going to pay, basically it is inflation, only for some odd reason here in the US we don't include energy costs into the inflation equation, so the official story is we don't have any inflation.  
In 2014 we was building a stock pile of oil at the rate of 2.5 million bbls a day. Oil prices crashed because the supply was way over what the world needed per day. OPEC and Russia cut out put 1.5 million a day That with the other natural decline of wells in the last 3 years has used up a lot of our stock pile. When Oil prices crashed from $120 bbl to $30 bbl oil company's stopped drilling new wells. Now we are getting balance oil prices are coming up. What it looks like in the oil world by the end of the year prices will be near $80 bbl if OPEC and Russia keeps the cuts. OPEC has another meeting in Nov if they remove the cuts and open everything back up oil will fall to $30 bbl. USA shale drilling has a lot to do with prices. If they produce too much OPEC will make prices crash to hurt them again. USA shale production need $70 to $80 bbl oil to keep drilling because those well dont produce good but a few years if not months. They have to keep drilling to keep the out put which has a big over head. In Saudi I have seen wells that was Drilled in 1975 still producing 5,000 bbls a day. Low over head. Saudi price per bbl is around $10 break even where in USA its $50 to $70.   
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Offline Ron Wenrich

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Re: Diesel on the Rise
« Reply #25 on: April 02, 2018, 06:23:42 AM »
The dollar has a lot to do with the price of oil.  When crude was at it's highest price, the dollar was at it's lowest.  If you look at the price of gasoline and home heating oil, they are right in line with crude prices, with some seasonal fluctuations.  Put 2 charts of the dollar and crude up and you'll see the correlation.  Right now, the dollar is declining since January.

That's not to say that supply doesn't have an effect on prices.  It does.  It takes awhile to build or decrease supply, so the effect is more subtle.  The dollar impact is more immediate.
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Offline PA_Walnut

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Re: Diesel on the Rise
« Reply #26 on: April 02, 2018, 07:06:55 AM »
Let's not forget the "roads and bridges". All that tax is going to fix them.  :D :-\
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Offline Ron Wenrich

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Re: Diesel on the Rise
« Reply #27 on: April 02, 2018, 09:13:20 AM »
I suppose you know that Lancaster county has 302 projects on the books that are scheduled or have been completed for a total of $630 million.  The current construction projects just for Lancaster county total 50 projects at $41 million.  Most of those are bridge replacements or rehabs.  So, yes, the high tax is fixing them.
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Offline PAmizerman

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Re: Diesel on the Rise
« Reply #28 on: April 02, 2018, 07:37:53 PM »
Let's not forget the "roads and bridges". All that tax is going to fix them.  :D :-\
Yes PA cause I'm running my diesel mill out on the highway and my big forklift I sure do appreciate that extra tax they put on OFF ROAD.  >:(
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Offline PA_Walnut

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Re: Diesel on the Rise
« Reply #29 on: April 02, 2018, 08:54:34 PM »
Most of those are bridge replacements or rehabs.  So, yes, the high tax is fixing them.


Excuse my skepticism, but I don't particularly put much merit in statistics published by Penn Dot's reports.

The siphoning of the "roads and bridges" revenue has already been reported.
And so it begins...

Hey, it's only $750M, so who's counting!? :-\
I own my own small piece of the world on an 8 acre plot on the side of a mountain with walnut, hickory, ash and spruce.
LT40HD Wide 35HP Diesel
Baker Portable Edger with Kubota Diesel
Kubota M62 Tractor/Backhoe
WoodMizer KD250 Kiln

Online Southside logger

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Re: Diesel on the Rise
« Reply #30 on: April 02, 2018, 09:06:18 PM »
Do they ever actually complete any road construction in PA?  
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Offline Ron Wenrich

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Re: Diesel on the Rise
« Reply #31 on: April 03, 2018, 06:46:05 AM »
PennDOT takes money and moves to the state police, and the Turnpike Commission takes money and moves it to PennDOT.   http://fox43.com/2018/03/19/truck-driving-companies-file-lawsuit-against-pa-turnpike-commission-penndot/

Taxpayer money has always been a shell game in PA, so it shouldn't surprise anyone.  I imagine other states have the same level of political gamesmanship. 

The local gas station has off road diesel and home heating at the same price.  When I worked at the mill, we used only off road and we could lock in prices for a year.  That got rid of fluctuations in price and we weren't open to price spikes in the market.  The same can be done with an option on #2 fuel.

Too much freezing and thawing and a whole lot of bridges means that there's a lot of construction projects in the state.  Add in the pounding the main roads take from the amount of traffic that flows through the state and you get lots of construction.  There are nearly 32,000 bridges, and 20% need repairs.  
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Offline PA_Walnut

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Re: Diesel on the Rise
« Reply #32 on: April 03, 2018, 06:57:06 AM »
Taxpayer money has always been a shell game in PA, so it shouldn't surprise anyone.  I imagine other states have the same level of political gamesmanship. 


Yes indeed. Once noblesse oblige left politics and went to career politics, this was the game: talk like preachers and act like gangsters.

This thread (oil, pricing, increases) cries out for political discussion and I took the bait. :-\ This is a HAPPY place to visit, since wood and forestry is largely a good thing. Unfortunately over-taxation, legislation and burden plagues us all. I apologize and digress and will keep politics to another forum, so as to remain HAPPY HERE! ;D:D

Speaking of happy, I recently got a 50 gallon tank, built a pallet for it, which I fork on and off my truck in order to fill with offload at local farm center. Has an electric pump and nozzle, powered/recharged by a small solar panel. Works like a champ--it makes me HAPPY! 
8)
I own my own small piece of the world on an 8 acre plot on the side of a mountain with walnut, hickory, ash and spruce.
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Offline petefrom bearswamp

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Re: Diesel on the Rise
« Reply #33 on: April 11, 2018, 06:45:10 PM »
Got delivery of 146 gallons of off rd diesel today
209.9 last yr 249.9 now.
Home heating oil varies from 279.9 to 309.9 here and IS subject to taxes, sales etc.
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Offline tawilson

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Re: Diesel on the Rise
« Reply #34 on: April 11, 2018, 08:27:36 PM »
I don't know what's going on here but I ordered 150 gallons of off-road today and was told it would be $473.95. I did a little quick calculation and tried to convince the girl on the phone that shouldn't be more than on road at the pump. She said it was 2.75 but the taxes brought it up to that. I cancelled. 
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Offline chet

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Re: Diesel on the Rise
« Reply #35 on: April 11, 2018, 09:35:06 PM »
On road diesel jumped 30 here today, I didn't look at the off road price.  :(
I am a true TREE HUGGER, if I didnt I would fall out!  chet the arborist

Offline petefrom bearswamp

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Re: Diesel on the Rise
« Reply #36 on: April 13, 2018, 09:00:57 AM »
TA wilson, Is there a Mirabito energy prod dealer near you?
They are the best price around here.
Got a notice from gasbuddy yesterday that said that gas prices are the highes in 2 years.
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Re: Diesel on the Rise
« Reply #37 on: April 13, 2018, 09:04:24 AM »
TA wilson, Is there a Mirabito energy prod dealer near you?
They are the best price around here.
Got a notice from gasbuddy yesterday that said that gas prices are the highes in 2 years.
I just got 64 gallons at the pump. I'll give them a call when that's gone. Thanks.
Tom
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Offline petefrom bearswamp

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Re: Diesel on the Rise
« Reply #38 on: April 13, 2018, 05:57:16 PM »
You're  welcome
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Re: Diesel on the Rise
« Reply #39 on: April 15, 2018, 01:44:44 PM »
My last farm diesel delivery worked out to be $1.95/gal after adding the Haz Mat charge. That has fed taxes but no state taxes on it.  I don't know what farm diesel is now, but since August the pump prices have gone up over $.50/gal.
I just filled my truck yesterday  and that was $3.049 a gal. For Farm diesel I usually only need 3-400 gal a year.
logging small time for years but just learning how,  2012 36 HP Mahindra tractor, 3point log arch, 8000# class excavator, lifts 2500# and sets logs on mill precisely where needed,  Peterson ATS upgraded to WPF mill, maple syrup a hobby that consumes my time. looking to learn blacksmithing.


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