Sylvie Willis
Diesel fuel is a petroleum product that is consumed by various industries, including transportation, agriculture, construction, and energy. In the United States, diesel fuel is primarily produced by petroleum refineries, with the majority being ultra-low sulfur distillate (ULSD). Several companies are involved in the distribution and supply of diesel fuel, serving different sectors. These companies include wholesale distributors, manufacturers, and service providers, offering diesel fuel for commercial, industrial, and municipal applications. The quality of diesel fuel is regulated to meet specifications, and initiatives like the TOP TIER™ Diesel Fuel program aim to promote better fuel quality and performance standards. The diesel fuel market also involves suppliers and exporters from different regions, contributing to a diverse and dynamic landscape in the industry.
| Characteristics | Values |
|---|---|
| Companies that produce diesel fuel | General Motors, Volkswagen, Daimler Truck, Navistar, Ford, U.S. petroleum refineries, TOP TIER™ Diesel Fuel program |
| Diesel fuel types | Ultra-low sulfur distillate or ULSD, biodiesel, renewable diesel, Petroalliance diesel fuel, EN590 Euro4 Gost 52368 |
| Diesel fuel uses | Diesel engines, heating oil, locomotive and railroad car parts, aviation fuel, gasoline |
| Diesel fuel prices | Released weekly, adjusted for inflation |
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What You'll Learn
- Diesel fuel is produced by US petroleum refineries and imported from Canada
- TOP TIER™ Diesel Fuel is sponsored by General Motors, Volkswagen, Daimler Truck, and Ford
- Distributors supply diesel fuel to various industries, including agriculture, construction, and transportation
- Ultra-low sulfur diesel (ULSD) is a common type with 15 parts per million or less of sulfur
- Biodiesel and renewable diesel are biomass-based alternatives to traditional diesel fuel
Diesel fuel is produced by US petroleum refineries and imported from Canada
Diesel fuel is a distillate fuel with a sulfur content of 15 parts per million or less, which is called ultra-low sulfur distillate or ULSD. It is used as diesel fuel and heating oil. In 2022, U.S. refineries produced about 1.75 billion barrels (73.46 billion gallons) of ULSD. The three largest-volume products of US refineries are gasoline, fuel oil (including diesel fuel and home heating oil), and aviation fuel, which together make up more than 84% of output. Most diesel fuel moves by pipeline from refineries and ports to terminals near major consuming areas. Barges, trains, and trucks are also used to transport diesel fuel to and from terminals.
US petroleum refineries produce most of the diesel fuel consumed in the United States. However, in 2022, the US imported about 0.07 billion barrels (2.80 billion gallons) of ULSD, with about 72% of those imports coming from Canada. In 2014, the US was the largest net exporter of refined petroleum, exporting 3.83 million barrels per day and importing 1.35 million barrels per day. Canadian refineries have a similar capacity to the US, with a daily capacity of 1,600,000 bbl/d (250,000 m3/d) of crude oil and a production capacity of 1,900,000 bbl/d (300,000 m3/d) of petroleum products.
Some notable US petroleum refineries include the Mandan Refinery, the Dickinson Renewables Facility, and the Canton Refinery (all owned by Marathon Petroleum), as well as the Kenai Refinery (owned by Marathon Petroleum Company) and the North Pole Refinery (owned by Petro Star by Arctic Slope Regional Corporation). Notable Canadian refineries include the Strathcona Refinery (Imperial Oil / ExxonMobil), the Scotford Refinery (Shell Oil Company/Canadian Natural Resources), and the Edmonton Refinery (Suncor Energy).
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TOP TIER™ Diesel Fuel is sponsored by General Motors, Volkswagen, Daimler Truck, and Ford
TOP TIER™ Diesel Fuel is a high-quality fuel performance specification developed by leading automotive and heavy-duty equipment manufacturers. The TOP TIER™ Diesel Fuel Program was created in 2017 to promote better fuel quality, improve engine performance, and reduce maintenance costs and vehicle downtime. It is currently sponsored and overseen by General Motors, Volkswagen, Daimler Truck, and Ford, with recommendations for use in both heavy and light-duty vehicles.
General Motors, one of the leading sponsors of the TOP TIER™ Program, is committed to ensuring optimal vehicle performance and engine care. The program's fuel performance standards are designed to help consumers maintain the cleanliness of their vehicle engines and emissions systems, resulting in improved fuel economy and reduced emissions. General Motors, through its participation in the TOP TIER™ initiative, demonstrates its dedication to delivering superior fuel performance and engine care.
Volkswagen, another key sponsor, brings its expertise in automotive innovation to the TOP TIER™ Diesel Fuel Program. Volkswagen's involvement underscores its commitment to providing exceptional fuel detergency and engine care for its vehicles. By partnering with TOP TIER™, Volkswagen ensures that its vehicles meet the highest standards of fuel quality and performance, benefiting both the environment and the driving experience.
Daimler Truck, as a sponsor, contributes its extensive knowledge in the commercial vehicle industry. By endorsing TOP TIER™ Diesel Fuel, Daimler Truck emphasizes its focus on maintaining fuel economy and minimizing maintenance costs for its fleet customers. The company's support for the program reflects its dedication to delivering reliable and efficient transportation solutions.
Ford, the fourth sponsor, completes the quartet of leading automotive manufacturers backing the TOP TIER™ Diesel Fuel Program. Ford's association with TOP TIER™ showcases its commitment to providing its customers with high-quality fuel options. By recommending the use of TOP TIER™ Diesel Fuel, Ford ensures that its vehicles perform optimally, reducing downtime and enhancing overall customer satisfaction.
Together, these four sponsors drive the success of the TOP TIER™ Diesel Fuel Program, setting high standards for fuel quality and engine performance. Their collaboration ensures that consumers can confidently choose TOP TIER™ Diesel Fuel, knowing that they are selecting a product that meets the stringent requirements of these respected automotive manufacturers.
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Distributors supply diesel fuel to various industries, including agriculture, construction, and transportation
In the agriculture industry, diesel fuel is essential for powering tractors, harvesters, and other heavy equipment. It plays a crucial role in plowing, planting, harvesting, and transportation tasks. Additionally, diesel fuel helps pump water for irrigation, further highlighting its significance in agriculture. To support these operations, farmers typically maintain a sufficient supply of agricultural diesel fuel, also known as red diesel, which is tax-exempt when used for farming.
The construction industry heavily relies on diesel fuel due to its high energy density and efficiency. Diesel-powered machines are capable of handling demanding tasks such as lifting steel beams, excavating, drilling, road surfacing, and transporting heavy loads. Distributors ensure a steady supply of diesel fuel to meet the energy demands of construction projects.
Transportation is another key sector reliant on diesel fuel. Diesel powers buses, urban transport vehicles, trucks, trains, and boats, facilitating the movement of consumer products and people. The versatility and performance of diesel engines make them a popular choice for transportation applications. Distributors play a vital role in ensuring the uninterrupted supply of diesel fuel to transportation companies and fleet operators.
In addition to these core industries, diesel fuel distributors also cater to a range of other sectors. For instance, diesel is used in diesel engine generators to provide backup and emergency power for industrial facilities, large buildings, hospitals, and electric utilities. The military is another significant user of diesel fuel, powering their vehicles and equipment. Furthermore, diesel is used in the manufacturing industry, powering forklifts, industrial pumps, and heavy machinery. Distributors of diesel fuel play a crucial role in supporting the operations of these diverse industries, ensuring a consistent supply of energy to keep their operations running smoothly.
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Ultra-low sulfur diesel (ULSD) is a common type with 15 parts per million or less of sulfur
Diesel fuel is a critical product for keeping engines running. It is produced from crude oil and has many different names, including distillate, gas oil, petrodiesel, kerosene, ultra-low sulfur diesel (ULSD), and gas oil. The term "diesel" is often used interchangeably with "distillate", which refers to any product distilled from petroleum.
ULSD is a common type of diesel fuel with significantly lowered sulfur content. In the United States, most diesel fuel consumed is ULSD, which has a sulfur content of 15 parts per million or less. This type of diesel fuel is also known as ultra-low-sulfur distillate. The move towards lower sulfur content enables the use of advanced emissions control technologies, substantially lowering harmful emissions from diesel combustion. Engine manufacturers and regulatory bodies have found that using emissions control devices with ULSD can reduce exhaust output to near-zero levels.
The transition to ULSD began in the 1990s, with the European Union mandating the reduction of diesel sulfur content and the United States establishing a requirement that diesel fuel contain less than 500 parts per million (ppm) of sulfur. In 2005, the National Environment Agency (NEA) announced that the use of ULSD would be mandatory, and by 2006, almost all petroleum-based diesel fuel available in Europe and North America was of the ULSD type. The EPA began lowering the standard to 15 ppm of sulfur for on-road diesel, creating the "ultra-low sulfur diesel" category.
By 2010, ultra-low-sulfur diesel had become the dominant product on the market, and all diesel fuel sold in the U.S. was required to be ULSD. This standard also applied to other countries, with most accession countries expected to transition to diesel fuel with 10 ppm sulfur or less. In 2022, U.S. refineries produced about 1.75 billion barrels (73.46 billion gallons) of ULSD, with a total consumption of about 1.44 billion barrels (60.30 billion gallons). ULSD is not only used as diesel fuel but also as heating oil, making it a versatile energy source.
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Biodiesel and renewable diesel are biomass-based alternatives to traditional diesel fuel
Diesel fuel is primarily produced by petroleum refineries in the United States. However, biomass-based diesel fuels, such as biodiesel and renewable diesel, are emerging as viable alternatives to traditional diesel fuel. Biodiesel is derived from biological materials such as vegetable oils, animal fats, and recycled cooking oil, while renewable diesel is produced through a hydrogenation process. These biofuels offer several advantages, including a reduction in the country's dependence on foreign energy sources, improved environmental conditions, and additional income for the agricultural sector.
Biodiesel, also known as "liquid sunshine," is a renewable and alternative fuel with a high overall positive life-cycle energy balance. It is named after Rudolf Diesel, the inventor of the diesel engine, who experimented with using vegetable oil as fuel. Biodiesel can be used as fuel for any diesel engine, with only minor modifications required in some cases. It has improved ignition properties due to its slightly higher cetane number compared to petrodiesel. In its pure form, biodiesel is referred to as "neat" biodiesel, and it can be blended with petrodiesel to create varying mixtures. For example, a B20 blend consists of 20% biodiesel and 80% petrodiesel.
Renewable diesel, on the other hand, undergoes a different production process than biodiesel. While biodiesel is produced through esterification, renewable diesel is created using a hydrogenation process. This process allows renewable diesel to meet the ASTM D975 specification for petroleum diesel, enabling it to be seamlessly blended, transported, and co-processed with petroleum diesel. Most renewable diesel is classified as hydrogenation-derived renewable diesel (HDRD) or hydroprocessed esters and fatty acids (HEFA).
The use of biodiesel and renewable diesel as alternatives to traditional diesel fuel offers several benefits. Firstly, they contribute to a decrease in the country's reliance on foreign energy sources, as biofuels can be derived from domestic agricultural resources. Secondly, they have the potential to improve environmental conditions by reducing the use of finite fossil fuel reserves. Additionally, the production and utilization of biodiesel and renewable diesel can provide an additional income stream to the agricultural sector.
While biodiesel and renewable diesel show promise as biomass-based alternatives, it is important to recognize that they are not panaceas for our energy challenges. Biodiesel, for instance, can only provide about 3-6% of the country's energy requirements. Nonetheless, the development and adoption of these biofuels are significant steps towards diversifying our energy sources and mitigating our dependence on non-renewable fossil fuels.
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Frequently asked questions
There are numerous companies that make diesel fuel, including U.S. petroleum refineries, wholesale distributors, and manufacturers.
Some wholesale distributors of diesel fuel include Thomasnet and Petroalliance. Distributors often provide diesel fuel for a variety of industries, including agriculture, construction, transportation, and government.
Diesel fuel manufacturers include companies that produce diesel engines, such as General Motors, Volkswagen, Daimler Truck, International, Navistar, and Ford. These manufacturers are also sponsors of the TOP TIER™ Diesel Fuel program, which promotes better fuel quality.
