Oil jumps above $100 on refinery outage

[HungLikeJesus]

Here is an interesting article that breaks down how the cost of a gallon of gas is divided.

Who gets rich off $3 gas - who doesn't

The guy running the service station makes just a few cents, while crude oil producers take the biggest chunk.

[busterb]

Offshore drilling, Newfoundland. Look at the price per-day of the rig!
ENSCO International Incorporated announced that the Company has entered into a letter of intent from a customer for a drilling contract for ENSCO 8503, an ultra-deepwater
semisubmersible rig currently under construction. The contemplated contract will be for a two-year term, with an option for the customer to extend the contract at mutually agreed rates and term. The aggregate day rate revenue for the two-year term is expected to be approximately $372 million. The base operating rate is $510,000 per day, and the day rate will be subject to adjustment for variances in operating costs from current levels.

[BrianR]

Originally Posted by monster

Do you mean keeping your engine running while you sleep?

If so, wouldn't it be cheaper to rent a room? (And probably more environmentally friendly too) Or do you have to keep the engine running anyway to stop the diesel freezing? Or something?

/nosy

sorry for the delay, I forgot about this thread.

Yes, I run the main engine while I sleep, for the heat/air cond as well as heating the fuel and keeping the oil warm and also keeping the batteries topped off.

I cannot afford to rent a hotel every night. I only make about $1000/wk. And I still have to eat.

Brian

[BrianR]

Originally Posted by monster

Hey TWonk
I didn't realize you were Brian's sock puppet. So, then, you do keep the engine running just to keep you warm while you sleep? Or are there other reasons? Is it cheaper to rent a room in the places where you have to stop or not ? Maybe there are other reasons for needing to stay in your cab? security for example? Please note, I am not passing judgement or complaining, just being nosy, so kindly do me the courtesy of not making assumptions about my opinions on the price of gas. kthxbai.

I speak only for myself. As I mentioned earlier, I run my engine for several reasons, chiefly climate control. If I don't sleep well, I'll be tired the next day. Piloting such a large vehicle is challenging enough without adding fatigue to the equation. I don't care what diesel costs: I'm going to stay comfortable. The company pays for the fuel. And who pays the cost of fuel to the company? You do! In the form of higher freight rates and fuel reimbursements to the drivers. That all adds to the retail price of everything you buy or use.

TW: a few corrections. My name is Brian, not brain, although I understand the confusion. Happens all the time. Next, my truck weighs 80,000 lbs gross, not 60. Minor point but let's strive for accuracy here.

Monster, there are a few alternatives to running the main engine. First, there are APUs (Auxiliary Power Units) to supply all the power needs that the truck and I have. There is also shore power (think extension cord) for some rigs. Another option that I use when possible is IdleAire. This system allows me to shut down, save fuel, sleep better and even provides creature comforts. I like this option best as the "green" battery units that Kenworth has do not provide enough power and tend to die after seven or eight hours and our breaks are ten hours long. I have this information from drivers who have this option so no cite.

I do not wish to run my engine but there are no viable options at this time. I do monitor the trade rags for the latest developments in anti-idling technology so I can reduce my idling hours.

Brian

[tw]

Originally Posted by BrianR

I do not wish to run my engine but there are no viable options at this time. I do monitor the trade rags for the latest developments in anti-idling technology so I can reduce my idling hours.

That again demonstrates my point. Oil prices are so low that truck lots are full of idling diesels. We all waste energy, in part, because useful or efficient solutions are not available. We also know from history that many American companies develop and stifle innovation. Intentional conspiracy? No. Most often reason is management that either stifle innovation in the name of cost controls, or uses spread sheets rather than science as a decision tool.

As Sculley noted when he was stifling innovation at Apple, every time he had the computer industry figured out, the industry had already changed. He had no idea what innovation was. He was ‘top dog’ because he was an MBA - not an innovator. What does it take to drive out such problems? Recession, sometimes only bankruptcy, or public outcry about people stifling innovation. However, as demonstrated here, that is not happening. Therefore prices must increase to force innovation.

$3 per gallon gasoline is not expensive enough. Largest SUV sales actually increased. From the 1970s, it took $5 per gallon gas to force some companies (ie GM) to liberate their innovators.


BTW, at 80,000#, do constraints exist in certain mid-west states?

[Undertoad]

How much fuel is burned idling? The only job it has to do is provide heat and probably, what, 500 watts of electricity. Traditionally if you want that much electricity someplace... you use a portable generator. If B goes to a hotel they have to heat an entire room and use much more energy up to get that room booked... which is in turn one reason it's more expensive there.

[tw]

Originally Posted by Undertoad

How much fuel is burned idling? The only job it has to do is provide heat and probably, what, 500 watts of electricity.

The numbers: 12 gallons of diesel burned overnight would be about 500 kilowatt-hours of electricity. IOW same energy would costs about $70 to heat a room electrically. How much does it cost to heat a whole house electrically only at night? $2200 per month? Of course not. Maybe one tenth that amount. But that is how much energy would be wasted idling overnight to keep warm.

[TheMercenary]

Originally Posted by Undertoad

How much fuel is burned idling? The only job it has to do is provide heat and probably, what, 500 watts of electricity. Traditionally if you want that much electricity someplace... you use a portable generator. If B goes to a hotel they have to heat an entire room and use much more energy up to get that room booked... which is in turn one reason it's more expensive there.

There are a number of places that have started a system of climate control truck stop hook ups. Problem is there is not enough of them.

http://www.etrucker.com/apps/news/article.asp?id=12760

http://www.sciencedaily.com/releases...0424180213.htm

http://www.knoxnews.com/news/2008/ma...g-gets-pricey/

[BrianR]

Originally Posted by tw

BTW, at 80,000#, do constraints exist in certain mid-west states?

No. Not exactly. The national maximum gross weight is 80,000 lbs.

Some states regulate axle weight however.

The information is found in a table at the front of any decent trucker atlas.

Brian