Energy Tomorrow Blog
Posted May 14, 2020
API’s latest Monthly Statistical Report (MSR) has positive news; it just takes a close look to find it.
One example: Weekly petroleum demand data (MSR and U.S. Energy Information Administration), as measured by total domestic petroleum deliveries, indicates that the worst impacts on our industry from COVID-19 and measures to contain it may be behind us, occurring in mid-April.
We won’t know for sure until we see data for May in next month’s MSR. But EIA’s Weekly Petroleum Status Report (WPSR), shows that demand rebounded by 3.0 million barrels per day (mb/d) as of May 8, from the low point in the week of April 10 (lowest demand for April since 1970). With more than 30 states in various stages of re-opening, demand could be expected to increase along with rising economic activity.
Posted October 2, 2019
When it comes to motor fuels, the prices we pay at the pump historically reflect crude oil prices – the No. 1 input cost according to the U.S. Energy Information Administration (EIA) – as well as the relative prices of other products, which collectively motivate refiners to manufacture different fuels.
We’ve seen through the energy revolution – and especially since 2015 – how lower prices for crude oil and natural gas (a key processing fuel and operating expense for refiners) have advantaged the U.S. petroleum refining industry – and ultimately led to lower fuel prices for consumers at home and abroad.
Posted May 16, 2019
Updated and new API standards that address the ethanol blended into the nation’s gasoline supply – developed in partnership with the Renewable Fuels Association (RFA) – will enhance the natural gas and oil industry’s ability to safely trade and/or ship its products.
Certainly, our industry has disagreed with RFA over policies and specific provisions related to the Renewable Fuel Standard’s mandates for increasing ethanol use in the nation’s gasoline. Even so, we agree on the need for technical standards to help ensure the safe transfer of products and work together to develop them.
Posted May 1, 2019
With summer driving season almost here, nationwide average gasoline prices were $2.88 per gallon as of April 30, according to the American Automobile Association, identical to what they were one year ago when adjusted for price inflation. This good news for consumers is due, at least in part, to record-breaking domestic oil production, which has put downward pressure on global prices for crude oil, the main factor in determining prices as the fuel pump.
While the current price may be the same when you pull up to pump, some notable things have changed behind the scenes.
Posted April 10, 2019
Connecting the renaissance in U.S. energy exports and chemical production with barbeques and turkey might not seem automatic, but hear me out. Thanks to the U.S. energy revolution, propane that’s widely used as a fuel for vital heating and cooking has never been more abundant and affordable.
Certainly, the need for affordable energy – available on-demand when and where you need it – is universal and something people I met recently during travels from Washington, D.C. to Minnesota and the Gulf Coast are talking about.
Posted January 22, 2019
Natural gas and oil are integral in all parts of modern life, every hour of every day. They serve as the building blocks for products and components associated with health care, clean water, education, entertainment, communications, art, agriculture and more. They fuel our transportation and power our 21st-century electricity grid – while making possible so many products that make life easier, healthier and safer.This message was one of the takeaways from API’s recent State of American Energy event, and is captured in our latest video, “America’s Generation Energy.”
Posted October 10, 2018
As officials at the National Hurricane Center monitor the projected path of Michael (below, as of Wednesday afternoon), here are a few things to know about industry’s preparations and the critically important fuel supply chain.
As with all impactful storms, industry’s focus is first and foremost safety and keeping the market well-supplied, including storm-affected areas. The nation’s fuel supply system is large, geographically diverse and adaptable – and has a history of responses that minimize disruptions.
Posted October 5, 2018
It may seem like there isn’t much “across-the-aisle” agreement in Washington these days, but amid reports the administration wants to facilitate year-round sales of E15 gasoline, a group of 20 Democratic and Republican senators has written to President Trump, criticizing the E15 proposal while urging him to protect consumers and join a meaningful discussion of addressing the broken Renewable Fuel Standard (RFS).
The rumored regulation, which would expand the sale of E15 by waiving certain Clean Air Act (CAA) requirements related to Reid Vapor Pressure (RVP), is a one-sided approach to addressing RFS-related concerns, the senators wrote, which favors only one industry stakeholder.
Posted September 13, 2018
As officials at the National Hurricane Center monitor the projected path of Florence, here are a few things to know about industry’s preparations and the critically important fuel supply chain.
First, industry’s focus – as with all impactful storms – is safety and keeping the market well-supplied, including storm-affected areas. The nation’s fuel supply system is large, geographically diverse and adaptable – and in the past has responded to minimize disruptions.
Posted August 17, 2018
With EPA receiving public input this week on its proposed ethanol volumes for 2019 under the Renewable Fuel Standard (RFS), it’s important to stay focused on the potential negative impacts of a broken Washington policy — on consumers and the fuel market.
Yes, we know that America’s energy renaissance in natural gas and oil production has accomplished the program’s aim of reducing U.S. reliance on imported crude oil. And we know that the RFS’ original goal of developing a commercially viable supply of cellulosic biofuel hasn’t become a reality. Even putting those (very large) factors aside, it is still very clear that lawmakers must to work together to find meaningful and long-term solutions to the broken RFS mandate – because it could bring very real harm to the nation’s consumers through higher energy costs and damage to the engines in their vehicles.
This week, API Downstream Group Director Frank Macchiarola told reporters that Congress needs to protect American consumers from potential risks posed by RFS mandates.