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Discussion Starter #1
I wonder if part of the reason we've seen increased fluctuations and a now constant premium over petrol is the simple fact that as work in the shale plays increases so does their diesel usage. As more and more of these plays come into play less and less is available for the rest of us...

Of course I have no data to provide (not sure where I would even find such!) but it was just a theory that dropped by...

Any experts about?
 

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This is a good question, and with the growing amount of new diesels on the road this seems like an issue, just not sure how much of an issue. Something worth looking into.
 

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I wasn't aware that there was a connection between diesel fuel and fracking but that would explain a rise in the cost of diesel fuel. Right now fracking is self regulated so we don't have very reliable information about exactly what they are using or how much of it.
 

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I thought they used water under pressure to remove oils/fuels from the rock. I am ignorant as to the reason why they would use more diesel fuel?

As a long time diesel owner...the main increase in fuel cost was the when high sulfur diesel was switch to LSD and then to ULSD this happened back in 03-04 time frame and recalled the local dump truckers going on strike due to the sudden increase in prices at the pump.
 

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The only diesel used in fracking is for the equipment itself such as the rigs, trucks, Trucks to bring in water.

Google diesel or gas futures, prices are to remain the same or close to the same through 2015.
 

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Discussion Starter #7
yea ronsram is right, only in the equipment. But as more plays come online more and more equipment is necessary. All mixed up in Net Energy inputs, how much in how much out is the pertinent question...
 

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It might raise the price a tiny bit but I don't think that it is something that is going to send diesel prices sky rocketing or anything.
 

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The diesel premium is because of the EPA and ultra low sulphur diesel that is mandated now, it has nothing to do with fracking.

All of the fuel used with fracking makes a tiny blip compared to the fuel used to move Chinese made plastic dog poop from china to walmart.
 

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It will be interesting to see what happens when the Dickinson refinery comes online in a few months. See if it eases the diesel supply in the Midwest and drops price.
 
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