Tuesday, January 13, 2015


Inversion is when two things are reversed, like air temperatures, chromosomes or taxes. It can be applied to lots of things.

Does anyone remember when diesel prices were way cheaper than gasoline? Yep the lowely diesel has recently become king of the fuel pricing scheme. This is great marketing by oil companies because..

diesel is less highly refined and doesn't cost as much to make.

I'm sure their rational is you get more energy per gallon from diesel, thus a diesel vehicle will get better mileage than a gas vehicle. But there is no economic rational for the inversion because the price of production is cheaper if it comes off the distillation stack at a lower level and is cheaper to make.

I'm guessing that might be true of engine oil too, which is more expensive yet. Again great marketing.

Isn't it interesting how we were almost out of oil a few years ago (remember "peak oil") and now the world is awash in oil.

Go figure, but I'm likeing the lower prices for sure.

It is the Saudies vs North Dakota...go North Dakota!

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