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Energy Tomorrow Blog

East Coast Fuel Delivery Progresses, Cross-Sector Action Needed to Meet Demand

colonial pipeline  cybersecurity  fuel supply 

Lem Smith

Lem Smith
Posted May 12, 2021

Since the Colonial Pipeline Company experienced a ransomware attack last Friday, the natural gas and oil industry has worked with government to bring a critical piece of infrastructure back online and use alternate methods of transportation to meet the nation’s energy demand. This is America’s largest fuel pipeline – spanning 5,500 miles from Texas to New Jersey – and normally delivers millions of gallons of gasoline, jet fuel and other petroleum products every day to consumers in the South and along the East Coast.

For now, industry stakeholders and energy experts are working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) in the Department of Transportation (DOT), Environmental Protection Agency (EPA) and other federal agencies to alleviate short-term supply disruptions.

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Responding to the Colonial Cyber Attack – and Industry’s Continuing Focus on Security

cybersecurity  colonial pipeline  fuel supply 

Mark Green

Mark Green
Posted May 11, 2021

The cyber attack on the 5,500-mile Colonial Pipeline that daily carries millions of gallons of fuel products from the Gulf Coast to New York and points in between, underscores some critically important points about the natural gas and oil industry – its resilience and agility in working to alleviate supply disruptions, the vital importance of investing in pipeline infrastructure for the economy and modern daily life, and the ongoing commitment by industry to protect itself and key assets from cyber criminals

Industry has worked and will continue to work with the Biden administration on actions to mitigate supply disruptions caused by the cyber attack. These include an hours-of-service exemption for those transporting gasoline, diesel, jet fuel and other refined products to 18 states, as well as a fuel waiver for states under EPA requirement to use reformulated gasoline (RFG) to be allowed to use conventional gasoline amid the disruption – helping fuel suppliers manage inventories until Colonial returns to normal operations.

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Fuel Supply Networks are Responding Properly

fuel supply  gasoline  distillate demand  jet fuel 

Dean Foreman

Dean Foreman
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.


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Energy Industry Preparedness & Response to COVID-19

safe operations  fuel supply  workforce 

Sam Winstel

Sam Winstel
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).

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High Stakes for the U.S. Response to Global Market Shifts

fuel supply  energy demand  opec 

Dean Foreman

Dean Foreman
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. 

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U.S. Supply, Global Efforts Cushion Global Oil Markets After Weekend Attack

Oil reserves  saudi arabia  energy prices  fuel supply 

Dean Foreman

Dean Foreman
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. 

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Record Refinery Performance Lends Confidence for Hurricane Season

hurricane preparedness  refinery capacity  consumers  fuel supply 

Dean Foreman

Dean Foreman
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.

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Hurricane Update: Florida’s Fuel Receiving Ports Reopening

hurricane response  florida  fuel supply  infrastructure 

Mark Green

Mark Green
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.

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Hurricane Update: Storage Tank Safety, Improved Fuel Outlook

hurricane response  florida  texas  storage tanks  fuel supply 

Mark Green

Mark Green
Posted September 12, 2017

Florida has no refineries, but it hosts a number of tanks for storing product and terminals, all of which will need assessing – as has been ongoing in Texas following Hurricane Harvey. We’ll see what is discovered. What we know is that API standards for the large, above-ground tanks used to store crude oil and fuels, like the ones we visited for this post a couple years ago, are designed to help prevent potential spills.

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Hurricane Update: Focusing on Fuel Supplies Before Irma Arrives

hurricane response  florida  fuel supply  consumers  hurricane-harvey  hurricane-irma 

Mark Green

Mark Green
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.

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