tag:blogger.com,1999:blog-13997249.post1559737159546784115..comments2023-10-17T01:15:28.166-07:00Comments on FOR THE VICTIMIZED: New era of expensive oilJun Yanghttp://www.blogger.com/profile/10494571359988318207noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-13997249.post-8805744872573813122008-06-15T23:10:00.000-07:002008-06-15T23:10:00.000-07:00HOW DO YOU DO... KOREANSIntelligent designThe Kore...HOW DO YOU DO... KOREANS<BR/><BR/>Intelligent design<BR/><BR/>The Korean government are forward thinkers. Some bright spark at the internal affairs office realised that instead of buying costly street sweepers they could just use bored middle aged women. Thusly every Korean mother or aunt is bowlegged, shaped like a question mark and smells of bins. But those street corners, wow.<BR/><BR/>...MORE AT lifestyleguides.blogspot.comJOLLY ROGERhttps://www.blogger.com/profile/00783431169281777041noreply@blogger.comtag:blogger.com,1999:blog-13997249.post-6245635910676081522008-06-14T02:27:00.000-07:002008-06-14T02:27:00.000-07:00I just saw your blog. I am a korean adoptee who li...I just saw your blog. I am a korean adoptee who lives in the US for half the year. The other half of the year I work in a little country called Equatorial Guinea in central Africa. Equatorial Guinea is the third richest oil country in Africa, and I am a chemical engineer for one of the major oil companies producing oil here. Prior to this I worked at a refinery.<BR/><BR/>The reason diesel prices were traditional lower then gasoline prices was not because of the quality difference, it was due to the difference in supply and demand.<BR/><BR/>There are two types of refineries. they are labelled as 3-2-1 or 3-1-2. The reason for this is because for every 3 barrels of oil - 2 barrels of gasoline - 1 barrel of diesel is made or 3 oil, 1 gasoline, 2 diesel. The vast majority of the refineries in the US (probably in the world) were 3-2-1, making more gasoline that diesel because it made more money. However, when gasoline prices rose, the demand for diesel steadily grew and was competitive with gasoline.<BR/><BR/>In the US there is only 1 company that primarily operates on the 3-1-2 ratio of oil:gasoline:diesel. That company is Valero. When the pricing of diesel switched to be more expensive then gasoline, they made a lot more money then any other refining company did because their plants were designed to produce more diesel. The price difference wasnt because it costs more or less to produce (they actually cost about the same) its that the supply of diesel is severely limited.<BR/><BR/>I am glad to see your last paragraph/statement. In the US a big issue right now is a lot of the politicians (particularly the democrats) want to impose a "windfall profit tax". Basicaly taxing oil companies for the profits they made. This is not a solution because the oil companies will just "pass" the cost onto the consumers as any company does. Also, an interesting side note, in the last 5 years (with high oil prices) the US government has made more money than all of the oil companies combined. Thats irony for you :)InMySeoulhttps://www.blogger.com/profile/10819168444102067032noreply@blogger.com