Easy Diesel Fuel

Originally designed in 1892 to be used in the compression ignition engine named after it’s inventor Rudolf Diesel. Diesel Engines have the ability to run on a wide variety of fuels, such as diesel fuel and modified vegetable oil. The most commonly useddiesel fuel is refined from crude oil. This fuel is most widely used by commercialbusinesses to deliver goods to the market and to fuel some commercial machinery. Due to its effect on the economy it is important to understand how the fuel is produced.

Diesel fuel is produced to different levels of distillates or grades. Distillates are simply liquids that have been distilled or refined to a certain grade. The most common distillate used by diesel engines in the United States is No.2. This fuel can also be used for heating. Distillate No. 2 is used because it has a low amount of sulfur. Due to new regulations effecting sulfur content in diesel fuel Low Sulfur Diesel (LSD) fuel was replaced by Ultra Low Sulfur Diesel (ULSD) fuel.

The difference between LSD and ULSD is noticeable in the parts per million (ppm). Low Sulfur Diesel fuel has a maximum of 500 ppm sulfur content.  Ultra Low Sulfur Diesel fuel has a maximum of 15 ppm of sulfur. By the year 2010 vehicles on the highway will be required to be 100% ULSD.  By the year 2015 it has been predicted that almost all diesel fuel used the United States will be ULSD.

A barrel of crude oil can produce many products including liquefied petroleum gases, heavy fuel oil, jet fuel, diesel fuel, gasoline and heating oil. Vegetable oil can also be used in conjunction with other ingredients to produce Biodiesel. Biodiesel can also be made from animal fats or recycled restaurant grease. This biodegradable fuel has proven to reduce the emissions of particulate gases.

Diesel is used in almost all semi-trucks, delivery vehicles, trains, buses, boats, farms and constructionequipment. In the year 2007 75% of diesel fuel was used by on highway vehicles. The remaining 25% was used by off highway equipment such as construction and farming and motors in military, railroad, heating equipment and marine water crafts.

Retail diesel fuel comes from a variety of locations.In 2007 about 4.5% of the diesel fuel used in the US came from foreign countries, primarily the Virgin Islands and Canada. The remaining amountwas produced in U.S. refineries. Also in 2007 66% of the crude oil used to produce diesel fuel in U.S. refineries was imported fromforeign countries. Most diesel fuel is transported bybarge, rail or pipeline from refineries to major consuming areas where it is loaded and delivered by tanker trucks to service stations across the country.

Diesel fuel used to be cheaper than gasoline. Why does it cost more than gasoline now? Diesel fuel has been generally higher thangasoline since September 2004. This is due to the increase in demand anddiminished production. Demand fordiesel and other distillates has increased worldwide.Europe, China and theUnited States creating the most demand. The production of diesel has suffered due to thetransition to Ultra Low SulfurDiesel fuel requirements in the United States. Also contributing to the price difference is the Federal excise tax that is 6 cents higher on diesel fuel than gasoline.

The modernization of more and more countries has slowly increased the demand for crude oil over the past several years. Approximately two-thirds of the world’s crude oil reserves are controlled by the Organization of Petroleum Exporting Countries (OPEC). OPEC controls production and sets a maximum production limit on 40% of the world’s crude oil reserves. These limits and other factors around the world continue to create rapid price fluctuations in the price of diesel fuel worldwide.