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Energy Tomorrow Blog

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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Columnist Gets it Wrong – Energy Companies Can Help Shape a Cleaner Future

climate change  innovation  technology  energy supply and demand 

Megan Barnett Bloomgren

Megan Bloomgren
Posted January 27, 2020

In his Jan. 10 column, the Houston Chronicle’s Chris Tomlinson took some shots at API’s new Energy for Progress campaign, which I addressed in a letter to the Chronicle’s editor. There’s only so much you can say in the 250 words you’re allotted for an LTE, so I thought I’d tackle Tomlison’s criticisms in greater detail here – actually, the kind of back-and-forth we’re trying to spark in our campaign.

For starters, Chris – like some politicians – fell prey to a tired and inaccurate caricature of the industry and dedicated his column to questioning our industry’s intentions instead of dedicating ink to the actual objectives before modern society – addressing the growing challenge of climate change while also making sure Americans have the energy they need.

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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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Fuel Costs and the Driving Season

crude oil prices  gasoline prices  supply  consumers 

Dean Foreman

Dean Foreman
Posted April 2, 2018

The summer driving season is arriving, so it’s a good time to take stock of recent market dynamics that have raised per-barrel costs for crude oil and consequently gasoline and diesel fuel.

Nationwide, the American Automobile Association (AAA) reports that average prices currently are $2.64 per gallon for gasoline (up from $2.54 a month ago) and $2.95 per gallon for diesel fuel (unchanged from last month). While there is nothing particularly special about these figures from an economic perspective, consumers take notice when fuel prices are on the rise. Let’s look at the factors that have affected pump prices in recent years.

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Hurricane Update: Refinery Restarts, Fuel Supplies Rise

hurricane response  gasoline supply  refineries  florida  texas 

Mark Green

Mark Green
Posted September 18, 2017

Much of the energy-related news from hurricane-recovery areas of Texas and Florida continues to be encouraging. Shell said it was restarting its Deer Park refinery in the Houston area that was shut down three weeks ago with the approach of Hurricane Harvey. ExxonMobil said it could start most of the production units at its Beaumont, Texas, refinery later this week. In Florida, Gov. Rick Scott said pre-Hurricane Irma preparations and a concentrated focus on refueling the state’s communities have shown progress.

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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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