Truck Wheels And Truck Rims

In 1892 Rudolf Diesel invented what would become known as the diesel engine. This engine would forever change the automotive industry. The diesel engine is capable of functioning on modified vegetable oil or diesel fuel. In the United States crude oil is the most common ingredient in refined diesel fuel. Diesel fuel is most widely used by commercial businesses to deliver products to the market. Commercial machinery and farm machinery also use significant amounts of diesel fuel. In order to understand our economy it is important to understand the role diesel fuel will play in the future.

When diesel fuel is produced it is refined to different levels of distillates or grades. The United States primarily uses distillate No. 2. Distillate No. 2 can also be used for heating and contains a low amount of sulfur. In 2006 low sulfur standards in diesel fuel began to emerge. Ultra Low Sulfur Diesel (ULSD) fuel was created to replace Low Sulfur Diesel (LSD) fuel.

Low Sulfur Diesel fuel contains a maximum of 500 parts per million (ppm) sulfur. Ultra-Low Sulfur Diesel fuel contains less than 15 ppm. By 06/01/06 80% of the vehicles on the highway must be ULSD. By 12/01/2010 100% of vehicles on the highway must be ULSD. It has been estimated that almost all diesel fuel used in the USA will be ULSD by 2015.

Crude oil can be used to produce products such as heavy fuel oil, jet fuel, gasoline, heating oil and diesel fuel. Biodiesel is another fuel that is created using diesel fuel, vegetable oil and other ingredients. Biodiesel significantly reduces the emissions of carbon monoxide and hydrocarbon gases.

The United States transportation system could not function without diesel fuel. In 2007 highway vehicles used approximately 75% of the diesel fuel consumed in the US. diesel fuel is used in buses, boats, trains, delivery vehicles, semi trucks, farms and construction equipment. Off-highway equipment such as diesel motors used in military railroad and construction accounted for the remaining 25%.

The United States imported approximately 4.5% of its diesel fuel from foreign countries In 2007. Canada and the Virgin Islands were the major contributors. However 66% of the crude oil used to produce the diesel fuel was imported from foreign countries in 2007. After production most diesel fuel is transported either by rail, pipeline or barge from the refineries to gas stations across the country.

Due to increased demand and a decrease in production diesel fuel has cost more than gasoline since September of 2004. Worldwide demand for diesel fuel has steadily been increasing in Chine, Europe and the U.S. Production has suffered because of the transition to Ultra Low Sulfur Diesel fuel in the U.S. The Federal excise tax also contributes to the price difference. The tax for diesel is six cents higher than for gasoline.

Factors that contribute to price fluctuations include cost and supply of crude oil. As more countries become more modernized their demand for distillate fuels increases. The Organization of Petroleum Exporting Countries (OPEC) sets a maximum production limit on 40% of the world’s crude oil. OPEC controls approximately two-thirds of the world’s crude oil reserves. This means that international news effecting OPEC countriesmay have significant effects on the production of crude oil. Diminishing the supply while demand continues to skyrocket.