Energy Tomorrow Blog
Posted March 26, 2020
Supply networks for refined products – including gasoline, diesel and jet fuel – appear to be responding properly and flexibly to sudden and sharp declines for transportation fuel stemming from the coronavirus (COVID-19) and global efforts to slow its spread.
Market conditions can shift, yet API’s view at this point is that most refined products markets have continued to function well in keeping about a month’s worth of storage.
We gauge this in part by comparing recent inventory levels for gasoline, diesel and jet fuel with their ranges over the past five years. Although some products appear to have more available storage capacity than others, if needed, it also is apparent that the pace at which refiners produce fuels can provide additional adjustments which will affect demand for storage.
Posted March 20, 2020
As the world copes with a mounting health and economic crisis, America’s natural gas and oil industry remains focused on preserving the health and safety of its workers and delivering critical energy supplies to communities across the country. As an industry, we are committed to operating safely and reliably despite the unpredictable circumstances, implementing contingency plans that ensure the continuity of fuels to market.
These were points of emphasis by emergency preparedness experts at leading energy trade associations during a joint press conference this week that detailed industry readiness and response during the novel coronavirus (COVID-19) pandemic (listen here).
Posted March 12, 2020
Global oil markets have shifted dramatically in recent days and weeks, and the stakes are high for the United States energy revolution, retirement savings and the broader economy.
Let’s start with crude oil prices. Per Bloomberg, the per-barrel price of West Texas Intermediate (WTI) on March 9 was about half of what it was on Dec. 31, falling to $31.13 from $61.06.
Posted September 16, 2019
An attack on a Saudi Arabian oil processing facility over the weekend has knocked out a significant part of Saudi production, at least temporarily, shaking oil markets. The precise amount and duration of the outage remains uncertain, and there are still unknowns about the attack that caused it, which in turn has inflated the risk premium on oil prices due to market fears about what may happen next within the region.
The market’s initial direction is clear, with Brent crude oil up more than $8 per barrel as of 3 p.m. Monday, per Bloomberg. Let’s break down what’s happened in context, recognizing that the U.S. energy revolution has fundamentally added to U.S. and global near-term deliverability of oil, natural gas and natural gas liquids, generally helping stabilize the global market against supply disruptions.
Posted August 16, 2018
As we head into what historically is the heart of the annual hurricane season, America’s refiners have never been in a stronger position to deliver the fuels we all need – which is good news for consumers.
According to API’s Monthly Statistical Report (MSR), the refining industry in June eclipsed 18 million barrels per day (b/d) of liquid fuels processed in distillation units and has remained on track for its strongest year on record.
Indeed, the U.S. Energy Information Administration forecasts that refinery runs will average 16.9 million b/d this year and 17 million b/d in 2019 – both of which would be records, surpassing the 2017 annual average of 16.6 million b/d.
Posted September 14, 2017
While the recovery in Florida – as well as the Texas-Louisiana Gulf Coast – will continue over weeks and months, developments indicate the state’s fuel supply remains a top priority and is being served with the help of industry and state and local officials. This is encouraging, given Irma’s Sunday landfall. The historic resiliency of our energy supply system is a part of that – the ability and flexibility of markets to adjust and help areas where fuel product needs are acute.
Posted September 12, 2017
Posted September 7, 2017
As the Texas-Louisiana region continues its recovery from Hurricane Harvey, energy companies are making preparations for Hurricane Irma, which the National Hurricane Center projects could make landfall in Florida on Sunday. The big issue in Florida is consumer access to fuel. Companies are working with state and federal officials to meet needs.
Jane Van Ryan
Posted August 4, 2009