40 Comments
Aug 11Liked by PenguinEmpireReports

Wonderful piece! Thanks. At the end of the day it seems to me that the political elites are vastly better at virtue signalling than at doing anything with real, net, global impact.

Expand full comment
author

Thank you!

Expand full comment
Aug 11Liked by PenguinEmpireReports

I might argue that given the political elites have demonstrated they have absolutely zero understanding of physics, chemistry or reality, they will never be able to do anything other than virtue signal.

Expand full comment
Aug 15Liked by PenguinEmpireReports

Well as they seem to be in support of "Abracadabra! Tracey!" they certainly have no grasp of reality.

Expand full comment
author

Well said.

Expand full comment
Aug 11Liked by PenguinEmpireReports

Heard a truthful one-liner yesterday about EVs:

People who buy an EV should also buy a dog, so that when they run out of power, they'll have someone to walk home with them.

Expand full comment

😂😂😂

Expand full comment
Aug 11Liked by PenguinEmpireReports

Interesting piece, particularly as regards the overproduction of gasoline due to the incentives/rules and fees on its use. One note, the scandal that ensnared VW, then more quietly Merc and finally Audi is a false narrative that was readily consumed by pop media. The core reason that auto mfrs broke the law is because it was promulgated with an incredibly short window for developing the technology to allow for radically reduced emissions requirements. Europe's NOx mandated emissions rates were nearly cut in half without adequate time for mfrs to meet those numbers. As a consequence of the stupidity of mandating a strict timeline for tech to develop into commercial production, German car companies simply lied. What else were they going to do? The EU, like CAFE in California has no interest AT ALL in rational, scientific approaches to the things they're supposed to be experts on - air and water quality standards. Hence the idiotic goal of pickups needing to get 35 mpg by X date in CA. It's not going to happen. Driving a 2.25 ton brick that is built to carry heavy stuff carries with it some obvious costs, one of which is sacrificed fuel efficiency. In the same way, though laden with incredible energy per unit, Diesel's carbon is a difficult thing to reckon with when burned. Diesel should be neither a scapegoat for the insanity of government rules nor the savior of humanity's need for transporting itself and associated good around the planet.

Expand full comment
author

You do bring up an excellent point: when politics make unaffordable or impossible rules, it’s also no surprise when the rules get bent or fraud occurs to keep the tax credits and make share flowing their way. We will unfortunately see a lot more of this before the energy transition dies, but it is extremely costly for shareholders when those scandals occur.

However, the main point is that as long as we need diesel- and we very much do- we’ll make gasoline, regardless of if we’re all forced to drive EVs.

Expand full comment
Aug 12Liked by PenguinEmpireReports

Very good and thought provoking point

Expand full comment
Aug 11Liked by PenguinEmpireReports

Great article. The motto of the story? Central planners really have no idea what they’re doing. It boggles the mind that the world still hasn’t learned this central lesson in the human condition.

Expand full comment
author

Thank you and yes, I’m sure we’ll have to relearn that lesson again!

Expand full comment
Aug 11Liked by PenguinEmpireReports

Great piece as always 👏. Goes to show utility-the iron law of energy-matters more than policy. Displacement is not the same as reduction. All that ever happens is a game of carbon musical chairs

Expand full comment
author

thank you!

Expand full comment
Aug 13Liked by PenguinEmpireReports

Love the trail mix analogy

Expand full comment
author

I must have been hungry when I initially wrote it!

Expand full comment
Aug 13Liked by PenguinEmpireReports

Excellent teaching article. A must read.

Expand full comment
Aug 13Liked by PenguinEmpireReports

Thanks for this article. It took my somewhat disjointed knowledge of the subject matter and put it together in a way that makes sense. This is something everyone should understand as it affects all of our lives.

Expand full comment
author

Thank you!

Expand full comment

Brilliant analysis with useful history. I worked at Engelhard petroleum catalysts in early 1980s. At that time, you could not “manufacture” diesel (like you turn heavier oil to gasoline with FCC units). Has that changed?

Expand full comment
author

Thank you! So if I understand it, you can have some flexibility with FCC. I attached two articles on FCC and diesel but from those articles, adding hydrogen seems to be the way to go.

https://refiningcommunity.com/wp-content/uploads/2017/07/Diesel-Creation-in-the-FCC-Centered-Refinery-Niccum-KBR-FCCU-Galveston-2013.pdf

Expand full comment
Aug 17Liked by PenguinEmpireReports

This was seriously informative.

I thought it might make the next logical leap & speculate on how the EV push might drive the same substitution, with EV "fuel" (electricity) becoming more costly (assuming the unlikely widespread adoption of EVs ever happens), causing gasoline demand (and relative price versus kilowatts, at least short term) to decline.

Maybe next time.

Expand full comment
author

Yes! That could be interesting!

Expand full comment
Aug 15Liked by PenguinEmpireReports

When the UK government started trumpeting the "greeness" of diesel in the mid 2000s, my first reaction was "Have these guys ever been anywhere near a diesel engine?" Being of the mindset that if the Government tells you to do something which appears ridiculous it's probably wise to do the opposite in 2007 I bought a 2005 plate petrol Skoda Octavia Estate with 3500 miles on the clock. I still have it and it has 218000+ miles on the clock. In 2008 my parents bought a diesel Citroen C4 which when they stopped driving they passed onto my wife. Guess which of these cars can go into the ULEZ zone in London?

These people are completely blind to the stupidity of their pronouncements.

Expand full comment
author

Thoughts on this older sky news article relating to the ULEZ?

https://news.sky.com/story/londons-ultra-low-emission-zone-resulting-in-only-marginal-air-quality-improvements-12469903

Expand full comment

Yes, don't believe a word Sadiq Khan says. I don't live in London so don't have suffer his fiefdom except when I have to travel down that way, but Londoners keep voting for him, so they've made their bed etc etc.

Expand full comment
author

It’s amazing how policies flip flop around!

Expand full comment

It's what happens when policies are set by fashion rather than facts.

Expand full comment

Problems get solved effectively when the free market can operate on the problem with a profit margin in mind.

The issue here is that the "problem" is the suspect notion of manmade climate change. Politicians dictate "solutions" to a questionable problem and then discover that the solutions are actually worse. Government needs to worry about tangible problems in their sphere (public safety, international affairs etc) and let the market deal with the rest of the problems.

Expand full comment

Great piece. Important information. If EU needs to rationalize their activities, they just change the taxonomy: Wood plugs become renewable, voila.

Expand full comment

Superbly written!

Ain’t it funny when the plans of the Noble Anointed don’t work?!

Expand full comment

I always understood the reason for European preference for diesel was fuel economy. Back in the day diesel was cheaper than gas and since diesel engines are more efficient (higher compression ratio) the lower fuel costs with diesel outweighed the greater upfront cost. Since gas was much cheaper in the US, diesels never caught on here. Increased diesel demand in Europe meant gasoline eventually became cheaper than diesel.

Side note, diesel is not much more energy dense than diesel. Diesel engines are more efficient, that means more work can be produced from a gallon of diesel, as opposed to more energy.

Expand full comment
author

So a couple things to answer your points:

Part of the fuel price in Europe is influenced by taxes. In most of Europe, taxes were set lower on diesel than gasoline. When you add the fact that diesel is 10-20% more energy dense than gasoline, that post-tax price difference starts to add up.

Plus, the EU set co2 emissions standards which pushed automakers towards diesels, etc.

Diesel engines are wondering machines. But the reason the EU pushed for them was an attempt to reduce gasoline consumption. It didn’t work as planned and it should be a real world warning to those that think replacing gasoline cars with EVs will result in wiping out gasoline production.

Expand full comment

I think I see what you are getting at with energy density. In terms of energy per unit mass gasoline and diesel are the same (see link). Weight is what counts as far as performance is concerned. But since diesel has a higher mass density, it yields more energy (and more CO2) per unit volume, and since it is sold by volume rather than weight that matter economically. Greenhouse gas emissions would *not* be affected by energy density, though it could be affected by the greater efficiency of high compression ratio diesel engines.

Do you have a source for greenhouse gases being the reason?

https://www.engineeringtoolbox.com/fossil-fuels-energy-content-d_1298.html

Expand full comment
author

You are right. They did think going to diesel was a way to reduce CO2 emissions, though I wonder if they were lying all the time.

I looked up composition data on gas vs. diesel. Assuming that the CO2 emitted comes from the carbon in the fuel, which seems reasonable I get the following figures for energy per kg of CO2 emitted

Diesel: 14.0 MJ/kg CO2

Gas: 13.8 MJ/kg CO2

There is essentially no difference between the two fuels in terms of the amount of CO2 generated per unit of CO2. The only way diesel can be better is if we focus on the useful energy (work) generated in which case the efficient is what matters, it has nothing to do with energy density. But the way this is presented in the article you gave you would think it was something inherent in the fuel and not the kind of engine.

In this case any reduction would be the result of higher efficiency, but this assume people wouldn't be buying diesel for the greater power you can get for the same fuel consumption, in which case, there goes any CO2 reductions.

Since this is bloody obvious to anyone who has had a high school chemistry course, I find it suspicious that the policy makers were actually serious about CO2 reduction and suspect they were simply faking it.

https://www.iea-amf.org/content/fuel_information/diesel_gasoline/#:~:text=Gasoline%20and%20diesel%20fuel%20contain,changes%20somewhat%20depending%20on%20composition.

Expand full comment
author

So you’re spot on that diesel isn’t the slam dunk, and in fact, unlikely to have any real impact on CO2 emissions. However, the EU environmental agencies claims it did from power train efficiency, etc. But that whole issue with CO2 emissions is part of the whole scandal and the misrepresentation from both politicians and from many business involved.

It was a scandal on so many levels.

Expand full comment
Aug 15Liked by PenguinEmpireReports

Now we are on the same page. But you said it was greater energy density for diesel that was thought to provide the greenhouse benefit. This implies that it is some characteristic of diesel compared to gasoline that provided this potential benefit, rather than what you put the fuel into.

This is critical different. If it was the former, the benefit would be achieved by changing fuels, independently of human behavior. If the later it was all about humans behaving the way you want them to, which is always a dicey thing.

Hence they were kidding themselves or outright lying.

Expand full comment

Was the VW "scandal" over a .24 difference in testing?

Expand full comment
author

So the scandal was a combination of the standard tests and the way VW attempted to pass the tests. To help understand the question better, 0.24 of what?

Expand full comment