SilverMax_04

This coming change in gasoline sulfur content has not been widely reported in the media, but it’s coming in 2006. This change has implications for the maintenance of all gasoline burning motor vehicles. I’ll summarize the change in US government mandated sulfur specifications for gasoline and then discuss the implications this change has on the life of exhaust systems and oil change intervals.

All sulfur is measured in parts per million (ppm) in a gallon of gasoline:

Type Measurement _____ 2004 _____ 2005 _____ 2006
Average Content ________ 120 _______ 90 _______ 30
Maximum Content _______ 378 ______ 326 _______ 95

{FYI: 100 ppm = 0.01% or 1/100 of a percent & 30 ppm = 3/1000 of a percent.}

The 2006 specifications must be met by March 1, 2006 with a goal of getting the sulfur content of all gasoline to 30 ppm or less. (Like all government rules there is an exception: eleven small refineries that produce about 4% of total US gasoline supply outside of California have an extended phase-in period to meet these specs. These eleven are generally located in the western US.) Given that this is a federal government mandate, the rules are not as simple as I’ve summarized them here, but you don’t need all of the details.

A very rough estimate of the refining cost to go from 80 ppm (a refinery average rule that allows gasoline to go to 90 ppm at the gas station) down to 40 ppm (I’m not certain why this value was used in this estimate) is about 1 cent per gallon. Given that market prices for gasoline fluctuate all over the place, I’m not certain you’ll be able to measure the added cost for this better gasoline when you buy it at the pump, but it’s likely to be about 1.5 cents per gallon maximum.

Why does reducing the sulfur content of gasoline impact vehicle maintenance? Very simply, burning a gallon of gasoline produces almost a gallon of water. Most of this water goes out your exhaust system. The sulfur in the gasoline ends up in the products of combustion (the water) and creates sulfuric acid. This water-acid condenses and eats up exhaust systems (particularly mufflers). Reducing the sulfur content of gasoline reduces the strength of the sulfuric acid produced during combustion. This increases the life of all exhaust systems. The water-acid also condenses on the cylinder walls and drains down into the motor oil. All motor oils have additives to neutralize the sulfuric acid. Because the acid will be weaker than before, these additives will be effective longer.

Bottom line – exhaust systems will last longer and you can increase the OCI (oil change interval) for your vehicle – unless you drive in very dusty conditions.

How do I know this? I retired in 1998 after 35 years with a major oil company. I’ve maintained some contact with those who still work there. Also, gasoline sulfur content is really down substantially from the gasoline sold in the 1980’s and even the 1990’s. Those still using a 3,000 mile oil change interval (popular in these early years) are really wasting their money on motor oil.

razel

Nice to know of another government regulation that affects us postively. I have grown living with the 3k oil change rule, but recently after beginning to do my own and learning about car maintenance, have found that if just about everything under your hood is fine then the 3k oil interval should be reserved for those driving under extreme daily almost road rally or drag strip like conditions. The key phrase is, 'just about everything under your hood.'

Everyone should be safe with whatever oil change interval their manufacturer recommends and it's great to enjoy the benefits of extended oil intervals. I myself never thought that I'd be able to push 8k on regular oil in my I30. Another reason to enjoy the VQ engine.

SPiG

iTrader: (7)

I have heard the sulfur is another reason Direct injection Gasoline engines have not caught on here as well as they have in Japan and maybe Europe too. The Lexus IS350 and several other US cars now have direct Injection and hopefully now Nissan will bring a VQ35DD here.

SilverMax_04

The article below from the Wall Street Journal says that the more stringent sulfur (and MTBE) specs for US gasoline will impact gasoline imports. Gasoline prices are likely to rise given the reduced foreign supply -- at least in the short term. {My one comment on this article is in these brackes inside of the article.}

Gasoline for U.S. to Dwindle

European Exporters Hit By New EPA Rules On Sulfur and MTBE
By USMAN SHEIKH -- The WALL STREET JOURNAL
March 6, 2006

LONDON -- European gasoline exports to the U.S. will dwindle in the months ahead as refiners struggle to meet new, more stringent U.S. fuel specifications, gasoline traders and refiners said.

At the heart of the matter is the U.S. Environmental Protection Agency's introduction of strict laws on sulfur content in transportation fuels. The EPA has also banned the use of methyl tertiary butyl ether, or MTBE, a chemical used to raise the level of oxygen in gasoline and thus make more of the gasoline burn {this is only true for carburated engines}. Both steps aim to ensure that transportation fuels are more environmentally friendly.

Gasoline traders believe that European exporters will take a short-to medium-term hit as the U.S. phases out the use of MTBE. In the longer term, they expect European refiners will have to change the way they blend and produce gasoline.

Under the new specifications, the U.S. has since January allowed only gasoline with a sulfur content of 30 parts per million, instead of 50 ppm. From May, the agency will remove the MTBE waiver, which currently permits the use of MTBE, to effectively ban the consumption of oxygenated gasoline.

"Europe is a major producer of oxygenated material, with around 75% to 80% of refineries producing it," a gasoline trader in London said. "After these restrictions take effect, the U.S. will not require our material anymore."

Lars Rosenlov, head of production at Statoil ASA's Kalundborg refinery, said Denmark is the only European country producing only non-oxygenated gasoline.

"Europe would ultimately have to move towards the production of MTBE-free gasoline, which is going to cost them more, but I think there is no other way out, given the long nature of the gasoline market here and thus a need for trans-Atlantic trade," he said.

As part of a schedule for phasing out MTBE, Valero Energy Corp., a major U.S. refiner, will stop blending MTBE with gasoline in March. All other refiners plan to follow suit. On top of this, the shipping of oxygenated gasoline into New York Harbor is planned to halt by mid-April.

Some analysts believe the sulfur content to be more important than the MTBE restriction and argue that the changes will actually support the European gasoline market. Hootan Yazhari, an energy equity analyst at Merrill Lynch in London, said the U.S. has historically imported around 30% of its gasoline from countries in Latin America, which don't have the infrastructure to adapt to the new specifications.

"Conversely, Europe is well placed to provide premium gasoline [to the U.S.] given that an estimated 70% to 80% of regional refiners are able to produce 10ppm gasoline and are structurally long gasoline," Mr. Yazhari added.

dla

SilverMax isn’t this the reformulated gas (RFG) the epa has been studying since the late 1990's?

http://www.epa.gov/otaq/rfg/information.htm

SilverMax_04

No.

This is Ultra Low Sulfur Gasoline combined with the EPA's decision to stop allowing MTBE to be blended into gasoline to create Oxygenated Gasoline (a part of the move for reformulated gasoline). That decision means that only ethanol (or methanol) can be used to blend Oxygenated Gasoline (OG). OG was an effort by the ethanol lobby to force the sale of more ethanol by requiring oxygen in gasoline. That could be accomplished by blending in either MTBE, ethanol or methanol. Oxygen in gasoline helped improve gasoline combustion (particularly at higher elevations) in vehicles that did not have oxygen sensors in their fuel delivery control system. So, oxygen in gasoline only helps improve combustion if your vehicle has a carburator -- not many like that still driving. It is all a big political hoax by the ethanol lobby to force the sale of more ethanol. Now with the elimination of MTBE most OG (which is no longer needed) will contain ethanol. Looks like the ethanol lobby wins this one.

dla

So if I remember correct phase 3 of rfg (about 1998) the epa was targeting sulfur levels below 50ppm (or lower) and a zero mtbe. That was targeted to be in place at the pump around 2002, but I think was amended.

Now the target is sulfur levels below 30ppm and zero mtbe with oxygen added in the from of ethanol (or methanol) and the epa is calling it og? So the difference is the ethanol additive?

CCS2k1Max

iTrader: (2)

Low sulfur gasoline + area/state-specific RFG + $70 bbl oil = $5.00/gal gas.

F/S Pre-owned Max. Will trade for econobox.

SilverMax_04

All I know is what the oil industry is calling this gasoline. When I was still working (I'm retired) there was Reformulated Gasoline that had a number of changes including less volitility and MTBE was part of the "solution."

Today the people in the industry are calling this gasoline Ultra-Low Sulfur Gasoline and MTBE is no longer allowed. Is it a part of the original EPA plan to change gasoline? Definitely. Has the gasoline been changed? Definiteyly. Can you call that Reformulated Gasoline? Definitely. But the oil industry is calling it Ultra-Low Sulfur Gasoline. Coming out of that industry, that is what I call it.

SoCalMax05

SilverMax is right on....

I work in the oil industry out here in So. Cal and I am very much involved in the change in Gasoline formulas. (Guy's this will be to the benifet to the consumer or all of us). Our freinds at these 30 minute oil change retailers have really put a "sales job" on many people - making them think that their car will just stop working if they don't change their oil. Great Marketing I do have to say.

SilverMax - Europe has really not started the ULSG (Ultra-Low Sulfur Gasoline) because they seem to be moving back toward Diesel. The Market for diesel is going to double or triple in the next few years.

SilverMax_04

The last two paragraphs in the Wall Street Journal article posted above were about diesel fuel. Since there are no diesel powered Max's, I deleted those paragraphs when I copied it here.

Diesel is very big in Europe. The EPA also is working on reducing the sulfur in US diesel fuel, and diesel powered cars will become more popular here given their better mileage. The US can continue to take advantage of diesel's popularity in Europe by importing the gasoline that comes along with refining crude oil to make diesel (in Europe). But there will be a lag while Europe catches up from not being able to use MTBE and the ULSG specs.

dla

From an oil industry perspective, what impacts will the ethanol have or is it purely environmental? There is a new ethanol plant being built about three hours from where I live. Not sure if they are getting it from sugarbeets or corn or both.

I will bet that Nissan will have diesel in their US product line within the next two or three years. Most likely in the Titan

SilverMax_04

It is purely political. Ethanol is not economic so the ethanol producers get the government to force blending ethanol into gasoline -- they can't decide whether the political reason is to reduce dependence on foreign crude oil or for reported environmental reasons. Because so few cars now have carburators, it is no longer needed for environmental reasons. Modern engines burn gasoline as cleanly as they burn gasohol (gasoline with 10% ethanonl). If the vehicle has a carburator some will burn the gasohol more completely than they will burn pure gasoline -- due to the oxygen content in ethanol.

There have been studies that say: When you consider the fuel needed to grow and harvest corn, the fuel needed to make fertilizer, and the fuel needed to convert corn into ethanol -- the energy used to make ethanol is more than the energy the ethanol contains -- a net energy loss. These studies have generally been surpressed by the ethanol lobby.

Both Republican and Democrats support ethanol mandates because they believe the corn farmers want this program. But the biggest winner with this mandated use of ethanol are ethanol manufacturers like ADM.

SilverMax_04

For now, it looks like the country of Mexico will only be reducing the sulfur level in their premium gasoline. Most gasoline sold in Mexico is sold by the national oil company: PeMex. Check out the details in the short article from OPIS (Oil Price Information Service). Based on this info, I would only put Mexican premium in a Max driving in Mexico.

2006-03-16 12:46:20 EST
***MEXICO TO PUSH AHEAD WITH SULFUR REDUCTION PLAN FOR PREMIUM GASOLINE

Mexico is on track to implement drastic cuts for sulfur content in premium grade gasoline, beginning in October, industry sources in Mexico City said. The government has given refiners and blenders 60 days from February to voice any concerns about the specification change.

So far, the implementation of the specification change is expected to go ahead as planned, judging for the lack of negative feedbacks. The Mexican government is expected to announce the gasoline specification changes officially in April, they said.

The maximum sulfur content for premium gasoline will be reduced to 80 parts per million (ppm) from 250ppm, with the new average sulfur content pegged at 30ppm. This would put the Mexican sulfur specifications for premium gasoline in line with the United States.

As for regular gasoline, the sulfur content will remain unchanged for now. The maximum sulfur content for regular gasoline is pegged at 500ppm for metropolitan Mexico City and 1,000ppm for outside the city limits. However, similar specification changes for regular gasoline are expected later this year or maybe next year.

The sulfur reduction move, which is aimed at combating air pollution problems, especially within the city limits, is likely to have a detrimental impact on the U.S. market. Some U.S. traders said that the specifications change in Mexico would increase competition for low-sulfur premium gasoline in the domestic markets, potentially reducing supplies to other markets in the U.S. southwest and southeast.

Mexico's state-owned PEMEX, which sells about 80% of its total 1.87 million b/d crude exports to the U.S., is currently buying about 50%-90% of its 200,000 b/d of gasoline import requirements from refiners in Texas, which
include Citgo, Valero, ExxonMobil and BP. Mexico's gasoline imports are split 50:50 between regular and premium grades.

-Edgar Ang