Hi Howard, Thanks for that very enlightening discourse, had not thought about the cost to Railroads but it does make sense. Even though the UK does produce oil from our North Sea oil fields, it goes mainly for export as I believe it is a finer grade of oil that is extracted. The current cost of a liter of diesel fuel here in the UK at the moment is around £1.14 to £1.16 or $2.26 at present exchange rates, do not know what our Railways pay. Regards Vic Caddy ELHS 895 Hhaines_@_aol.com wrote: > > In a message dated 3/30/2008 2:15:31 P.M. Mountain Standard Time, > toddsyr_@_twcny.rr.com writes: > > This must be affecting the railroads too, though > maybe slightly less. They probably get a bulk discount. > > > Not exactly as you would think, although railroads do pay an amount that > differs from "clear on-road diesel." > > First, all the diesel you see at your retail stations has road tax included > in the price---state and federal, and sales tax, for those states that have > sales tax (Montana does not have a sales tax). Just the federal tax of $0.24 > per gallon up to a combined high of about $0.52 per gallon, as in Montana--New > Jersey is a low state tax, but NY is higher. > > Railroads are not charged the on-road tax. So if they do use clear diesel, > they get the tax back--eventually. Also, most railroads have long-term > purchase agreements with suppliers, kind of like your utilities for electric, so > some price fluctuations do not hit the railroads quite as hard, unless they use > more than their agreements cover. > > What the country is seeing now (this "spring") is due to the normal shut > down of refineries for annual maintenance, reducing availability. Prices have > gone up a bit to help the build-up of petroleum stocks for later processing. > The maintenance (and home heating fuel) have caused the price of diesel to rise > this spring. As with the above information, your federally funded Energy > Information Administration (EIA) estimates a spring peak of diesel around $4.50 > per gallon average for the nation. They expect the cost of diesel to drop a > bit in early summer before rising again due to processing the higher-cost > ($100-112 per barrel) petroleum. (That will also affect gasoline this summer > with new nationally-high peaks, but our favorite railroads don't use much of > that). > > One other thing that raises the cost of diesel--it is not the same diesel > that the EL used. You will no longer be able to "smell the sulfur." (or > benzene or 17-other aromatic compounds) at the levels experienced in 1976 and > earlier. > > Air quality concerns have lowered the amount of sulfur, aromatics and other > diesel constituents that were used in the fuel before 1972. Crude oil also > has changed to "lower grades" that are not as sweet as those available to our > favorite roads. All this means is that fewer gallons of diesel come from a > barrel of today's petroleum. And the diesel we use is "cleaner." > On the one hand, this means folks are again looking at the Oil City area to > extract more of that sweet Pennsylvania crude once carried by Erie and > others. (Estimated that only 5-to-15-percent was extracted). > > And I suspect ALCOs would still produce black smoke, but possibly of a > different intensity/color hue. With lower sulfur (down to 15 PPM), there is less > lubricity (compared to the 650 PPM sulfur or thereabouts in 1972). Off-road > diesel will be reduced to 50 PPM by 2010, and 15 PPM by 2012, so even today's > diesel will smell different by then. > > Rest assured your pre-1972 ALCOs will still be able to produce smoke, as the > EPA has grand-fathered them from upgrades during engine re-builds. But > everything produced from 1972 forward will be required to have retrofits added > during engine rebuilds or overhauls to reduce emissions. And more regulations > are coming. > I do not expect a time in my life time if there will be a time when we > cannot get the "proper" fuel to run the "antique" engines of the pre-1972 EL Era. > I know these changes have been affecting antique automobiles (and spawned a > whole new industry). Locomotives will not have the luxury of numbers to help > offset such retrofit costs. > Off my soap-box for the time being. > > Howard Haines > Helena Montana > > > > **************Create a Home Theater Like the Pros. Watch the video on AOL > Home. > (http://home.aol.com/diy/home-improvement-eric-stromer?video=15&ncid=aolhom00030000000001) > > > The Erie Lackawanna Mailing List > http://EL-List.railfan.net/ > To Unsubscribe: http://Lists.Railfan.net/erielackunsub.html > > __________ Information from ESET NOD32 Antivirus, version of virus signature database 2987 (20080331) __________ > > The message was checked by ESET NOD32 Antivirus. > > http://www.eset.com > > > > ___________________________________________________________ Try the all-new Yahoo! Mail. "The New Version is radically easier to use" – The Wall Street Journal http://uk.docs.yahoo.com/nowyoucan.html The Erie Lackawanna Mailing List http://EL-List.railfan.net/ To Unsubscribe: http://Lists.Railfan.net/erielackunsub.html ------------------------------
This HTML page is © 2000-2009 Blue Moon Online System and The Railfan Network
This page and the data contained therein may not be reproduced
for any form of commercial use without the explicit permission
of J. Henry Priebe Jr. or his duly authorized agent.