Department of Energy Analyses in Support of the EPA Evaluation of Waivers of the Renewable Fuel Standard November 2012
|
|
- Alexandrina Anthony
- 5 years ago
- Views:
Transcription
1 Department of Energy Analyses in Support of the EPA Evaluation of Waivers of the Renewable Fuel Standard November 2012 Ethanol Demand Curve for 2012 and 2013 In support of EPA analyses of the 2012 RFS waiver requests, DOE developed an ethanol demand curve (Figure 1) to be used as an input assumption for stochastic modeling and assessment of ethanol demand, corn supply and demand and economic impacts. The approach in developing the demand curve follows the same approach adopted in support of a RFS waiver request from the State of Texas in 2008; the ethanol demand curve is developed based on the price ratio of ethanol vs. gasoline (E/G Price Ratio). The differences between the constructions of the 2008 vs ethanol demand year reflect the following factors: the relative levels of ethanol blending into gasoline, the expected markets for ethanol blending after the ethanol low level blend wall is encountered, and the expectation that any waiver of the RFS program would be for only one year. The ethanol demand curve was developed by analyzing the value of ethanol as a blending component relative to other gasoline blending components in the refinery linear program (LP). The refinery LP contains detailed representation of refinery processing units, raw material inputs costs and qualities, and variable and fixed operating costs and detailed gasoline blending representation to capture both product environmental and performance specifications for the winter and summer gasoline seasons. 1 Additionally, DOE assessed the capability of refiners, terminal operators, and pipeline companies to change the transportation, distribution, and terminal blending infrastructure facilities to reduce or increase the amount of ethanol use in the short term. Refinery Blending Economics DOE conducted a detailed analysis of the gasoline blending economics of ethanol relative to other high octane blending components available within refinery. The analysis was done for both the winter and summer gasoline seasons, and for refineries that produce either a mix of reformulated, sub-specification gasoline blendstocks for ethanol blending (CBOB) and conventional gasoline for ethanol splash blending, or produce only conventional gasoline and conventional gasoline blendstocks for ethanol blending. The refinery LP model indicated that for a typical cracking refiner that produces both winter and summer conventional and CBOB gasoline, the ethanol value is about equivalent to the octane replacement costs from refinery feedstocks. The marginal cost of production of the primary octane replacement is almost equivalent to an E/G ratio of 1.1. The refinery LP analysis also indicates that the ethanol value to a refinery is higher at lower ethanol consumption levels than it is when ethanol reaches the low level gasoline ethanol blend wall. 1 See Appendix A for more information on analysis conducted using the refinery linear program.
2 E10 Refueling Infrastructure Issues The analysis below describes how the gasoline supply infrastructure can limit refiners and blenders capability to quickly change the proportion of ethanol blended gasoline they produce and market. Refiners and gasoline blenders have increased their production of 10 percent ethanol gasoline blends (E10) over the last eight years for several reasons. First, the ethanol value as a blending component has increased as the crude oil price has increased and, subsequently, the gasoline price, and as significant volumes of new ethanol production capacity came online in response to the renewable fuel standard (RFS) enacted in the EPACT 2005 and were increased in the EISA Further ethanol production also came online as the ethanol excise tax exemption made blending ethanol into gasoline a valuable gasoline blendstock relative to gasoline blendstock derived from crude oil. Second, refiners gained experience handling ethanol when in 2006, they chose to replace MTBE as a blending component to address concerns with MTBE causing water quality issues in areas where gasoline leaked from underground fuel storage tanks. This MTBE-to-ethanol transition resulted in some retail operators having to drain storage tanks to remove excess amount of water and replace refueling equipment filters that swelled due to water contamination. Third, refiners and blenders in 2008 exercised discretionary blending of ethanol at levels significantly above the RFS mandate level due to good economics. When the price of ethanol rose to a level where it became uneconomic for refiners they reduced the amount of ethanol they blended with gasoline. During this transition, some refiners and blenders learned that some of their terminals and ethanol blending equipment were not sophisticated enough for optimized blending or blending at multiple sub-specification grades, which allows varying the demand for E10. Finally, when refiners and blenders chose to reintroduce ethanol blended gasoline to retail stations that had stopped selling ethanol blended grades, some storage tanks had to be drained completely to remove water and some refueling equipment required the changing of filters. Ethanol Supply Contracts Another issue limiting refiners and blenders ability to quickly change the quantity of ethanol they blend into gasoline is the structure of their contracts with ethanol suppliers. Many of these contracts are long-term with a predetermined price and volume over a given period of time. That is, the contracts require the purchaser of ethanol to pay for contracted delivery of ethanol whether or not market conditions have changed. 2
3 These transition issues surrounding the proposition of introducing ethanol blended gasoline into retail markets, removing ethanol blended gasoline from the market, and then reintroducing it increases transition costs. The result is that refiners and blenders are unlikely to switch between providing ethanol blended grades of gasoline and non-ethanol grades of gasoline in markets in the short run. The only exceptions would be during the transition from winter to summer specification grades of gasoline or from summer to winter gasoline when stocks of gasoline are brought down to accommodate the seasonal gasoline specification changes. RFS Compliance Beyond 2013 The ability of refiners and blenders to comply with the RFS requirements beyond the 2012 and 2013 compliance years will likely play an important role in how they comply with the RFS requirements in 2012 and 2013, even if the 2012 or 2013 RFS requirements are changed as a result of the RFS waiver request. This is because the low level ethanol gasoline blend wall may soon limit, the incremental volumes of ethanol that refiners and blenders can blend into gasoline. Other RFS compliance strategies would increase the blending of biomass-based diesel and increase the volume of ethanol sold as E85 or possibly introduce E15 blends for use in 2001 model year or newer vehicles. Widespread adoption of E15 blends that would significantly increase ethanol demand in the next year is not considered feasible or evaluated as a possible compliance strategy due to issues that still need to be resolved. Assuming the only viable compliance strategy for 2014 in generating incremental RINs is either blending non-ethanol renewable fuels such as biomass-based diesel or selling incremental volumes of E85, the value of RINs could easily approach $1.00 or more per ethanol-equivalent gallon. This is because E85 compliance would require ethanol to sell at a price that is reflective of its lower energy content, plus an additional discount to compensate for consumers need to refuel more often. This discount could be on the order of $1.00 or more per gallon assuming spot gasoline prices are in the $2.50 to $3.00 per gallon range and ethanol production costs are in the $2.20 to $2.80/gallon range. Given the issues outlined above, the ethanol demand curve between the E/G ration of 1.0 to 1.5 was reduced to a level at which refiners would begin to remove ethanol from markets where they are currently splash blending ethanol on top of finished gasoline. Refiners would limit removing ethanol from markets where there is optimized blending for octane compliance. The demand curve incrementally backs out ethanol demand as ethanol prices rise above gasoline to a maximum of 3 billion gallons, which accounts for all the splash-blended ethanol market and a small portion of the optimized-blended ethanol markets. 3
4 E85 Retail Economics Marketing E85 to flexible-fuel vehicle owners will require retailers to adjust the price of fuel to account for both ethanol s lower energy content relative gasoline and the reduced number of miles a tank of E85 will achieve relative to gasoline or E10 blends. A gallon of E85 provides about 75 percent of the energy a gallon of gasoline provides and a tank of E85 will only take a consumer 225 miles while a tank of gasoline would provide 300 miles of travel. Consumers will notice this difference and will require the price of E85 to be lower to make up the difference. Additionally, many consumers will likely want an additional incentive to account for the more frequent refueling that E85 requires. In the end, E85 may need to be priced at a greater discount than it would be based on the energy content differential between E85 and gasoline alone. Additionally, retailers that make investments in E85 refueling tanks and pumps will likely require that the retail margins for E85 be higher than those for gasoline because sales volumes will likely be lower than what could be achieved with investments in gasoline refueling infrastructure. DOE incorporated the E85 retail economics into a short-term ethanol demand curve for the RFS waiver request analysis using the following assumptions. First, the RFS waiver analysis is being performed over the 2012 to 2013 motor fuel demand time frame, it was assumed that incremental E85 sales would only take place at existing E85 retail outlets. Second, it was assumed that incremental investments in E85 refueling infrastructure would not change appreciably over the next 12 months. Third, the demand curve for ethanol was expanded to accommodate the incremental quantity of E85 that could be sold at existing retail E85 stations as the price of ethanol drops relative to gasoline. The maximum volume was limited to retailers refueling their E85 tanks (assumed to be about 5000 gallons) from the current once per month refill rate to about a once per week refill rate, which is the approximately average refill rate of retail gasoline storage tanks in the U.S. This would result in the potential demand increase for E85 from approximately 125 million gallons annually to 600 million gallons annually. 4
5 E/G Price Ratio Ethanol Demand Curve for 2012 and 2013 Compliance Years Only Bgal vs E/G Price Ratio B gallons /Yr Figure 1 Ethanol Demand Curve 5
6 Appendix: Refining Economics of Reducing Ethanol with Rising Ethanol Prices Introduction As a result of the Renewable Fuel Standard (RFS), industry made the necessary investments to blend ethanol into gasoline, and most gasoline today contains 10- percent ethanol (by volume). With the drought this past growing season, the price of corn, the major feedstock for fuel ethanol, increased, and thus the price of ethanol increased. The Environmental Protection Agency (EPA) was asked to consider waiving the RFS, with the underlying assumption being that fuel demand for ethanol would decline, thus lowering both corn demand and the price of corn. The price of ethanol relative to gasoline is a key measure of when refiners might find it economic to back ethanol out of gasoline, should such a waiver be issued, and setting aside the hurdles and economics of transporting and storing additional gasoline types. 2 As a result, DOE s Office of Policy and International Affairs sponsored an analysis to explore the economics of reducing ethanol use at a refinery as the cost of ethanol rises relative to gasoline. Many refiners have changed their operations to make use of ethanol s high octane. They produce a sub-octane blending component that, when blended with 10-percent ethanol, produces a finished gasoline with the appropriate octane and other driveability and emission properties. For these refiners, there is a cost to change back to producing a gasoline without ethanol. It was assumed that reformulated gasoline (RFG) would continue to be produced with ethanol, as it is easier and less expensive to remove ethanol from conventional gasoline. The study focused on Gulf Coast refineries 3. Gulf Coast refineries represent about half of U.S. refinery capacity, and they produce mainly conventional gasoline, which represented almost 83% of the gasoline and blending component output in These refiners supply the Gulf Coast area as well as East Coast and Midwest consumers with gasoline, and thus represent a large potential for ethanol reduction. 2 We recognize that the distribution system is where the largest challenge may lie in changing the level of ethanol content in gasoline, but we also need to understand the costs at the refining level. 3 Gulf Coast for this memo is Petroleum Administration for Defense District (PADD) 3. 6
7 Analysis The purpose of the study was to obtain a rough estimate of the level of cost changes refiners might see when reducing ethanol, which could then be used to explore relative ethanol price levels necessary to provide incentives to reduce ethanol volumes. A representative Gulf Coast refinery was analyzed using a detailed refinery linear programming model (LP) developed by Jacobs Consultancy for the Department of Energy (DOE). The representative refinery runs a moderately heavy, high sulfur crude mix, and is equipped with fluid catalytic cracking (FCC), alkylation, coking, reforming, and full desulfurization units to accommodate the streams produced from the crude oil feed. Ethanol has a very high octane number, which adds to its value as a gasoline blend stock; however, it has a high vapor pressure and lower energy content than most other gasoline blend components. These properties impact how and at what cost refineries are impacted with reduction in ethanol use. The analysis examined the economics when refineries switch a portion of their production from conventional gasoline blend stock for oxygenate blending (CBOB), which is a sub-octane blend that will only meet all finished gasoline quality requirements when ethanol is added at the terminal in the sales region, to finished conventional gasoline that will meet quality specifications without ethanol being added. Crude oil was priced at $107 per barrel, gasoline was $123 per barrel, and ultralow sulfur diesel (ULSD) $128 per barrel, with typical summer/winter variations. Ethanol was priced equal to gasoline to isolate the added refinery variable cost resulting when ethanol volume is reduced. The base LP model run made 100% CBOB, meaning 10% ethanol would be added to every gallon of CBOB produced at the refinery. Then ethanol use was progressively reduced in subsequent cases. Three reduction cases were explored: 1) CBOB production at 67% of total gasoline and 33% conventional, 2) 33% CBOB and 67% conventional, and 3) 100% conventional with no ethanol use. When the high-octane ethanol volume is reduced, the refinery compensates by finding more octane in other streams, primarily in reformate. Reformate is the gasoline blending component made in the reformer where molecules in the lowoctane naphtha feed are reformed into higher-octane aromatic molecules. The refiner can increase the aromatic content of the product, increasing the product octane, but in doing so the volume of reformate product decreases, and the volumes of light lower-priced refinery gases increase. The result is an increase in operating costs and a decrease on refinery margins both as operating costs increase and volumes of higher margin product decline. But if a refinery must pay a higher price for ethanol, it may be more economical to reduce ethanol and 7
8 increase reformate octane (with its associated loss of volume for the gasoline pool). Table 1 summarizes the economics for this Gulf Coast refiner. The table shows that as the refiner reduces ethanol use, the compensating cost increases from 1.1 cents per gallon at the 33% conventional gasoline level to 3.7 cents per gallon when all the ethanol is removed. The model runs kept ethanol priced equal to gasoline, but we can calculate a break-even price, above which it is more economic for the refiner to reduce ethanol volumes and alternatively produce more octane within the refinery. As the table shows for the 33% conventional case with its 33% reduction in ethanol use, if ethanol prices rose 26.4 cents per gallon above the price of gasoline, then ethanol volume reduction becomes attractive. The table shows the increasing variable margin penalty and the increase in ethanol prices required to make ethanol reduction economic. Table 1. Summary Economic Results for Three Ethanol Reduction Cases Ethanol Reduction Base Moderate Large Full Percent CBOB Percent Conventional (No Ethanol) Average Percent Ethanol in Gasoline Pool Added Variable Cost/Gallon of Gasoline (cpg) Breakeven Ethanol Price Increase (cpg) Ethanol/Gasoline Price Ratio Note: cpg cents per gallon Additional model runs were made for a Gulf Coast refinery making 20% RFG and the balance CBOB in the base case. The results showed only a small change compared to the table above. Based on conversations with several refiners, it seems likely many would experience results similar to those shown in the table. Some, however, will have more challenging economics for ethanol reduction. For example, refiners with poor gasoline octane pools and those who bring in large volumes of low-octane blending material such as pentanes plus streams would see less attractive economics. 8
9 Conclusion Our assessment based on analysis at the refinery level only is that, if the distribution system were able to handle variations on ethanol blends and if there was a waiver of the RFS program beyond one year, substantial ethanol could potentially be removed from U.S. refineries (mainly Gulf Coast). For reductions in ethanol blending to be profitable to refiners, however, the price of ethanol would have to increase significantly; more than 26 cents per gallon of ethanol to incentivize an ethanol reduction of 33% and increasing ethanol costs to further reduced ethanol blending. 9
William Piel
Fuel Options Exist for Expanding Gasoline Supplies without processing additional Crude Oil? E1? E2? E8? ETBE? Which use of in Fuel Provides the Highest Market Value? Which use of results in the Most Non-Petroleum
More informationReplacing the Volume & Octane Loss of Removing MTBE From Reformulated Gasoline Ethanol RFG vs. All Hydrocarbon RFG. May 2004
Replacing the Volume & Octane Loss of Removing MTBE From Reformulated Gasoline Ethanol RFG vs. All Hydrocarbon RFG May 2004 Prepared and Submitted by: Robert E. Reynolds President Downstream Alternatives
More informationModeling the Effect of Renewable Fuels Standards 2
Modeling the Effect of Renewable Fuels Standards 2 Prepared For US Environmental Protection Agency October 2008 5995 Rogerdale Road Houston, Texas 77072 USA +1.832.351.7840 phone +1.832.351.7887 fax Modeling
More informationREFINING ECONOMICS OF A SINGLE OCTANE. For. The Alliance of Automobile Manufacturers. MathPro Inc. P.O. Box West Bethesda, Maryland
FINAL REPORT REFINING ECONOMICS OF A SINGLE OCTANE NATIONAL CLEAN GASOLINE STANDARD For The Alliance of Automobile Manufacturers by MathPro Inc. P.O. Box 34404 West Bethesda, Maryland 20827-0404 October
More informationChanges to America s Gasoline Pool. Charles Kemp. May 17, Baker & O Brien, Inc. All rights reserved.
Changes to America s Gasoline Pool Charles Kemp May 17, 2016 Baker & O Brien, Inc. All rights reserved. Discussion Points Light Naphtha Definitions Sources and Uses of Light Naphtha Octane Challenges Tier
More informationU.S. GASOLINE AND DISTILLATE FUELS UPDATE - DECEMBER 20, 2017
U.S. GASOLINE AND DISTILLATE FUELS UPDATE - DECEMBER 20, 2017 PRICE TRENDS Monday, December 18 According to the Energy Information Administration (EIA), the average U.S. retail price for regular grade
More informationRFS2: Where Are We Now And Where Are We Heading? Paul N. Argyropoulos
Agricultural Outlook Forum Presented: February 24-25, 2011 U.S. Department of Agriculture RFS2: Where Are We Now And Where Are We Heading? Paul N. Argyropoulos Office of Transportation and Air Quality
More information1. Introduction and Summary
Calculating Gasoline RVP Seasonal Change Giveaway Economics 1. Introduction and Summary A. Barsamian, L.E. Curcio Refinery Automation Institute, LLC Tel: +1-973-644-2270 Email: jabarsa@refautom.com US
More informationEthanol and the Economics of Octane The Superior Solution
Ethanol and the Economics of Octane The Superior Solution Geoff Cooper Renewable Fuels Association October 20, 2017 Today s Presentation What is octane and why is it important? Options for boosting octane
More informationFlexible-Fuel Vehicle and Refueling Infrastructure Requirements Associated with Renewable Fuel Standard (RFS2) Implementation
Flexible-Fuel Vehicle and Refueling Infrastructure Requirements Associated with Renewable Fuel Standard (RFS2) Implementation Conducted for The Renewable Fuels Association March 211 47298 Sunnybrook Lane
More informationUpdated Assessment of the Drought's Impacts on Crop Prices and Biofuel Production
CARD Policy Briefs CARD Reports and Working Papers 8-2012 Updated Assessment of the Drought's Impacts on Crop Prices and Biofuel Production Bruce A. Babcock Iowa State University, babcock@iastate.edu Follow
More informationOCTANE THE NEW ECONOMICS OF. What Drives the Cost of Octane and Why Octane Costs Have Risen Since 2012 T. J. HIGGINS. A Report By:
THE NEW ECONOMICS OF OCTANE What Drives the Cost of Octane and Why Octane Costs Have Risen Since 2012 A Report By: T. J. HIGGINS Contents Foreword... 1 1. Executive Summary... 2 2. Tracking the Changing
More informationViewing the Vehicle and Fuel as a System: The Economic Implications of High Octane Low Carbon Fuel
Dean Drake Defour Group EESI Briefing Rm. 106 Dirksen Senate Office Building Washington, DC November 13, 2017 Viewing the Vehicle and Fuel as a System: The Economic Implications of High Octane Low Carbon
More informationEliminating MTBE in Gasoline in 2006
Release Date: 02/22/2006 Eliminating MTBE in Gasoline in 2006 Summary In 2005, a number of petroleum companies announced their intent to remove methyl tertiary-butyl ether (MTBE) from their gasoline in
More informationREFINING SOLUTIONS IN A CHANGING WORLD RFG, RFS, SULFUR, BENZENE, TIER 3 AND BEYOND
REFINING SOLUTIONS IN A CHANGING WORLD RFG, RFS, SULFUR, BENZENE, TIER 3 AND BEYOND Thomas R. Hogan, P.E. Senior Vice President January 22, 2015 Turner, Mason & Company Privately held established 1971
More informationUnderstanding the RFS and RINs. Geoff Cooper Renewable Fuels Association August 29, 2018
Understanding the RFS and RINs Geoff Cooper Renewable Fuels Association August 29, 2018 Million Gallons To understand RINs, you must first understand the RFS 36,000 Renewable Fuel Standard (RFS2) Statutory
More informationCHEMSYSTEMS. Report Abstract. Petrochemical Market Dynamics Feedstocks
CHEMSYSTEMS PPE PROGRAM Report Abstract Petrochemical Market Dynamics Feedstocks Petrochemical feedstocks industry overview, crude oil, natural gas, coal, biological hydrocarbons, olefins, aromatics, methane
More informationPreliminary Assessment of the Drought s Impacts on Crop Prices and Biofuel Production
CARD Policy Brief 12-PB 7 July 2012 Preliminary Assessment of the Drought s Impacts on Crop Prices and Biofuel Production by Bruce Babcock Partial support for this work is based upon work supported by
More informationAN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS
Study No. 175 CANADIAN ENERGY RESEARCH INSTITUTE AN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS ON MARKETS FOR CANADIAN CRUDE OIL Canadian Energy Research Institute
More informationOperating Refineries in a High Cost Environment. Options for RFS Compliance. March 20, Baker & O Brien, Inc. All rights reserved.
Operating Refineries in a High Cost Environment Options for RFS Compliance March 2, 217 Baker & O Brien, Inc. All rights reserved. Discussion Points Introduction Renewable Fuels Standard (RFS) Overview
More informationChallenges to Ethanol Blending in the Southeast
Challenges to Ethanol Blending in the Southeast EPRINC EIA Roundtable Washington, D.C. April 15, 2008 Daniel H. Moenter Manager, State Government Affairs Marathon Oil Corporation Upstream In business since
More informationImplied RIN Prices for E85 Expansion and the Effects of a Steeper Blend Wall
Implied RIN Prices for E85 Expansion and the Effects of a Steeper Blend Wall April 2013 FAPRI-MU Report #03-13 Providing objective analysis for more than 25 years www.fapri.missouri.edu Published by the
More informationOverhauling Renewable Energy Markets
Overhauling Renewable Energy Markets Bruce Babcock Iowa State University Presented at Recognizing Risk in Global Agriculture, Ag Symposium, Federal Reserve Bank of Kansas City. July 19, 2011. Kansas City,
More informationWhy gasoline prices are headed for $3.50 at the pump
April 18, 2006 The price spike in the Spring of 2006 Why gasoline prices are headed for $3.50 at the pump Commissioned By: The Foundation For Taxpayer and Consumer Rights 1750 Ocean Park Boulevard, Suite
More informationIMPACTS OF THE IMO SULPHUR REGULATIONS ON THE CANADIAN CRUDE OIL MARKET
IMPACTS OF THE IMO SULPHUR REGULATIONS ON THE CANADIAN CRUDE OIL MARKET CERI Breakfast Overview Allan Fogwill, CEO Canadian Energy Research Institute November 2018 Overview Canadian Energy Research Institute
More informationPotential Environmental and Economic Benefit s of Higher-Oct ane Gasoline
Potential Environmental and Economic Benefit s of Higher-Oct ane Gasoline Raymond Speth, Eric Chow, Robert Malina, Steven Barrett, J ohn Heywood, W illiam Green CRC W orkshop, Argonne National Laboratory
More informationACE/Biofuels Journal Webinar March 10, 2011
ACE/Biofuels Journal Webinar March 10, 2011 Where We are Today: The Status of the U.S. Ethanol Industry Producing 13.23 Billion Gallons of Ethanol 12.86 Billion Gallons consumed domestically 397 Million
More informationFARMLAND MARKETS: PROFITABILITY AND FUTURE PERSPECTIVES
FARMLAND MARKETS: PROFITABILITY AND FUTURE PERSPECTIVES Title: The RFS and Grain and Oilseed Markets: All Eyes on the EPA Presenter: Scott Irwin Affiliation: University of Illinois Wednesday, November
More informationOn-Line Process Analyzers: Potential Uses and Applications
On-Line Process Analyzers: Potential Uses and Applications INTRODUCTION The purpose of this report is to provide ideas for application of Precision Scientific process analyzers in petroleum refineries.
More informationUpdate: Estimated GHG Increase from Obama Administration Inaction on the 2014 RFS
Update: Estimated GHG Increase from Obama Administration Inaction on the 2014 The blend wall should not be a consideration for setting the, because the United States is using more transportation fuel in
More informationThe U.S. Renewable Fuel Standard Background, Controversies, & Reform, or, This Crisis, or the Next?
The U.S. Renewable Fuel Standard Background, Controversies, & Reform, or, This Crisis, or the Next? Argus Global Gasoline Conference May 8-9, 2018 London, UK Max Pyziur Energy Policy Research Foundation,
More informationNew Ultra Low Sulfur Diesel fuel and new engines and vehicles with advanced emissions control systems offer significant air quality improvement.
New Ultra Low Sulfur Diesel fuel and new engines and vehicles with advanced emissions control systems offer significant air quality improvement. The U.S. Environmental Protection Agency (EPA) has issued
More informationTrends in Iowa Ethanol Blends Sales: E10, E15, E20, and E85 and the Biofuel Distribution Percentage
Trends in Iowa Ethanol Blends Sales: E10, E15, E20, and E85 and the Biofuel Distribution Percentage By IFBF Research and Commodity Services- By Patricia Batres-Marquez, Decision Innovation Solutions (DIS).
More informationCorn Outlook. David Miller Director of Research & Commodity Services Iowa Farm Bureau Federation December 2013
Corn Outlook David Miller Director of Research & Commodity Services Iowa Farm Bureau Federation December 2013 Source: USDA-WAOB U.S. Corn Supply & Usage U.S. Corn Supply & Usage Comments With the largest
More informationGROWING YOUR BUSINESS WITH BIODIESEL. Copyright 2016 Renewable Energy Group, Inc.
GROWING YOUR BUSINESS WITH BIODIESEL BIODIESEL DEMAND DRIVERS 2 WHAT S DRIVING BIODIESEL DEMAND? RVO Federal and state tax incentives Sustainability 3 WHAT S DRIVING BIODIESEL DEMAND? RVO Revised RVO offers
More informationChallenges to Ethanol Blending in the Southeast
Challenges to Ethanol Blending in the Southeast Agricultural Outlook Forum 2008 Arlington Virginia February 22, 2008 Daniel H. Moenter Manager, State Government Affairs Marathon Oil Corporation Upstream
More informationRENEWABLE / ALTERNATIVE ENERGY RELATED SERVICES PRIMARY CONTACTS. Peter Bartlett. Gary N. Devenish
Baker & O Brien has advised the oil and gas industry on renewable energy sources including biomass, ethanol, wind power, and biodiesel projects. Our experience includes analyzing renewable fuel standards
More informationThe company s sales have averaged $3-5 million since 2011, however, because of the doubling of the cost of product over the past 2 years, it is
Welcome To EXECUTIVE SUMMARY CW Petroleum Corp was founded as a Texas corporation by Christopher Williams and began operations in 2011. It reincorporated in Wyoming as a C corporation in April 2018. CW
More informationprovide testimony on the opportunities and challenges with high octane fuels and vehicles.
Testimony of Chet Thompson, President and CEO, American Fuel & Petrochemical Manufacturers U.S. House Energy and Commerce Subcommittee on the Environment High Octane Fuels and High Efficiency Vehicles:
More informationFuture Fuels. John Eichberger Executive Director
Future Fuels John Eichberger Executive Director Fuels Institute jeichberger@fuelsinstitute.org @eichbergerjohn @fuelsinstitute Fuels Institute Board of Advisors Disclaimer: The opinions and views expressed
More informationWeekly Statistical Bulletin
API 1220 L Street, NW Washington, DC 20005 Weekly Statistical Bulletin STATISTICS DEPARTMENT Volume: 93 Number: 35 Week Ending: August 31, 2012 SUMMARY (In thousands of 42-gallon barrels per day, except
More informationAbstract Process Economics Program Report 222 PETROLEUM INDUSTRY OUTLOOK (July 1999)
Abstract Process Economics Program Report 222 PETROLEUM INDUSTRY OUTLOOK (July 1999) Global energy demand is rising, with fossil fuels oil, natural gas, and coal continuing to provide more than 90% of
More informationProduction of Transportation Fuels by Co-processing Biomass-Derived Pyrolysis Oils in a Petroleum Refinery Fluid Catalytic Cracking Unit
Stanley J. Frey R&D Fellow November 5, 2015 Production of Transportation Fuels by Co-processing Biomass-Derived Pyrolysis Oils in a Petroleum Refinery Fluid Catalytic Cracking Unit TCBiomass2015 Chicago,
More informationPROCESS ECONOMICS PROGRAM SRI INTERNATIONAL Menlo Park, California
PROCESS ECONOMICS PROGRAM SRI INTERNATIONAL Menlo Park, California Abstract Process Economics Program Report No. 169 REFINERY/CHEMICALS INTERFACE (January 1985) Demand for most major refinery products
More informationImplications Across the Supply Chain. Prepared for Sustainableshipping Conference San Francisco 30 September 2009
Implications Across the Supply Chain Prepared for Sustainableshipping Conference San Francisco 30 September 2009 Agenda Residual Markets & Quality Refinery Bunker Production Supply & Pricing 2 World marine
More informationJune 25, The Honorable Donald J. Trump The White House 1600 Pennsylvania, Ave., NW Washington, DC 20500
June 25, 2018 The Honorable Donald J. Trump The White House 1600 Pennsylvania, Ave., NW Washington, DC 20500 On behalf of the National Marine Manufacturers Association (NMMA), we would like to express
More informationFuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Issue 20, Volume 8
Fuel Focus Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices Issue 20, Volume 8 October 18, 2013 Copies of this publication may be obtained free of charge from: Natural Resources
More informationAlternative Fuel Price Report
July 2016 Natural Gas Ethanol Propane Biodiesel CLEAN CITIES Alternative Fuel Price Report Welcome to the July 2016 issue! The Clean Cities Alternative Fuel Price Report is a quarterly report designed
More informationChallenges and Opportunities in Managing CO 2 in Petroleum Refining
Challenges and Opportunities in Managing CO 2 in Petroleum Refining Theresa J. Hochhalter ExxonMobil Research & Engineering Fairfax, VA GCEP Workshop on Carbon Management in Manufacturing Industries STANFORD
More informationJerry Morehart. Commercial Development Manager Supply, Distribution and Planning. February 18, 2008
Studium Conferences Biofuels Logistic Challenges and Solutions Jerry Morehart Commercial Development Manager Supply, Distribution and Planning February 18, 2008 This presentation contains forward-looking
More informationEconomic Analysis of the Implications of Implementing EPA s Tier 3 Rules. Prepared for the. Emissions Control Technology Association (ECTA)
Economic Analysis of the Implications of Implementing EPA s Tier 3 Rules Prepared for the Emissions Control Technology Association (ECTA) by George R. Schink, Ph.D. Hal J. Singer, Ph.D. 1 Navigant Economics
More informationA New Proxy for Coking Margins Forget the Crack Spread
Annual Meeting March 13-15, 2005 San Francisco Hilton Hotel San Francisco, CA A New Proxy for Coking Margins Forget the Crack Spread Presented By: John B. O Brien President Baker & O Brien, Inc. Dallas,
More informationUS Refining Industry: Forecasts, Capacity, Challenges
US Refining Industry: Forecasts, Capacity, Challenges Crude Oil Quality Group Cindy Schild, API February 26, 2009 Overview Prices, Earnings & Forecasts Domestic Refinery Industry Capacity Environmental
More informationRNG Production for Vehicle Fuel. April 4, 2018
RNG Production for Vehicle Fuel April 4, 2018 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
More informationFuture of Biofuel Use in the United States: An Examination of the Renewable Fuel Standard
Future of Biofuel Use in the United States: An Examination of the Renewable Fuel Standard Emily Beagle WISE Intern - American Society of Mechanical Engineers University of Wyoming Summer 2013 Introduction
More informationThe Petrochemical Industry From Middle Eastern Perspective?
The Petrochemical Industry From Middle Eastern Perspective? Hydrocarbon Journey in Kuwait 1946 ENTERING CRUDE EXPORT MARKET 1949 FIRST REFINERY COMMISSIONED 1938 1 st COMMERCIAL OIL DISCOVERY 1963 AMMONIA
More informationEthanol Supply Chain and Industry Overview: More Harm Than Good?
Ethanol Supply Chain and Industry Overview: More Harm Than Good? Authors: Sarah L Bruce Advisor: Alexis Hickman Bateman, Edgar Blanco Sponsor: Yossi Sheffi MIT SCM ResearchFest May 23-24, 2012 Ethanol
More informationCrude Export and the New Dynamics
27 April 2016 Crude Export and the New Dynamics Mel Larson, Principal Consultant SUPERIOR RESULTS. SUSTAINED. Topics of Interest Crude Export Impact The Great Divide Export to everywhere The US Advantage
More informationAbstract Process Economics Program Report No. 158A OCTANE IMPROVERS FOR GASOLINE (February 1992)
Abstract Process Economics Program Report No. 158A OCTANE IMPROVERS FOR GASOLINE (February 1992) Lead phaseout in the United States has brought about a strong interest in oxygenated octane improvers for
More informationTechnical Session: Crude Oil Supply High Quality Competitive Distillate Fuels from Coal-to-Liquids Processing
Technical Session: Crude Oil Supply High Quality Competitive Distillate Fuels from Coal-to-Liquids Processing NPRA Annual Meeting March 20, 2007 Mark Landrum / Jon Warzel BAKER & O BRIEN Incorporated,
More informationPROCESS ECONOMICS PROGRAM
PROCESS ECONOMICS PROGRAM Abstract Process Economics Program Report No. 158 SRI INTERNATIONAL Menlo Park, California 94025 OCTANE IMPROVERS FOR GASOLINE (November 1983) There la currently worldwide interest
More informationRenewable Fuel Standard
Renewable Fuel Standard Protect Availability of Splash Blending Growing number of oil companies are selling pre-blended E10, and retaining majority of profit Some oil companies have gone to mandated E10
More informationBiofuel Market Factors
Biofuel Market Factors Michael Cooper Ultra Green Energy Corporation, Executive Vice President Biofuel Brokers, LLC, President/Director 866-E-MY-FUEL (369-3835) info@ultragreenenergy.com emyfuel@biofuelbrokers.com
More informationTHE OIL & GAS SUPPLY CHAIN: FROM THE GROUND TO THE PUMP ON REFINING
THE OIL & GAS SUPPLY CHAIN: FROM THE GROUND TO THE PUMP ON REFINING J. Mike Brown, Ph.D. Senior Vice President Technology BASICS OF REFINERY OPERATIONS Supply and Demand Where Does The Crude Oil Come From?
More informationBiofuels Outlook - December 2017
December 19, 2017 Biofuels Outlook - December 2017 Biofuels Outlook - December 2017 Despite only a small change in renewable fuel volume requirements for 2018, RIN prices will rise in 2018. The absence
More informationFueling Savings: Higher Fuel Economy Standards Result In Big Savings for Consumers
Fueling Savings: Higher Fuel Economy Standards Result In Big Savings for Consumers Prepared for Consumers Union September 7, 2016 AUTHORS Tyler Comings Avi Allison Frank Ackerman, PhD 485 Massachusetts
More informationImpacts of Options for Modifying the Renewable Fuel Standard. Wallace E. Tyner Farzad Taheripour. Purdue University
Impacts of Options for Modifying the Renewable Fuel Standard Wallace E. Tyner Farzad Taheripour Purdue University The Renewable Fuel Standard (RFS) was created in 2005 and modified in 2007 with the objective
More informationBenefits of greener trucks and buses
Rolling Smokestacks: Cleaning Up America s Trucks and Buses 31 C H A P T E R 4 Benefits of greener trucks and buses The truck market today is extremely diverse, ranging from garbage trucks that may travel
More informationWhite Paper.
The Advantage of Real Atmospheric Distillation Complying with the ASTM D7345 Test Method in the Distillation Process Introduction / Background In the past, refiners enjoyed a constant supply of the same
More informationRefining/Petrochemical Integration-A New Paradigm
Refining/Petrochemical Integration-A New Paradigm Introduction The global trend in motor fuel consumption favors diesel over gasoline. There is a simultaneous increase in demand for various petrochemicals
More informationTYPES OF BLENDING PROCESS
SYSTEMS LTD Blending operations became a major strategy as an answer to the ever-growing competitions between refineries. The strategy of blending crude oils and refinery products is to increase refining
More informationEPA MANDATE WAIVERS CREATE NEW UNCERTAINTIES IN BIODIESEL MARKETS
2nd Quarter 2011 26(2) EPA MANDATE WAIVERS CREATE NEW UNCERTAINTIES IN BIODIESEL MARKETS Wyatt Thompson and Seth Meyer JEL Classifications: Q11, Q16, Q42, Q48 Keywords: Biodiesel, Biofuel Mandate, Waivers
More informationB A K E R & O B R I E N
B A K E R & O B R I E N I N C O R P O R A T E D Q3 : U. S. Refining Margins Remain Robust Special Topic: Domestic Light Oil Processing in the U.S. Gulf Coast Have We Hit the Limit? Houston, October 30,
More informationMade in Texas Plan to Create a Million New Jobs. Oil Sign Policy
Made in Texas Plan to Create a Million New Oil Sign Policy History The history of oil, autos and Texas are forever intertwined. With the discovery of one of the largest oil strikes at Spindletop outside
More informationEmerging Trends in Petroleum Markets
Emerging Trends in Petroleum Markets For Defense Logistics Agency, Worldwide Energy Conference Washington, D.C. By T. Mason Hamilton, Petroleum Markets Analyst U.S. Energy Information Administration Independent
More informationBiomass-based Diesel Policy Options: Larger RFS Requirements and Tax Credit Extension
February 2014 Biomass-based Diesel Policy Options: Larger RFS Requirements and Tax Credit Extension FAPRI-MU Report #01-14 Providing objective analysis for more than 25 years www.fapri.missouri.edu Published
More informationRefining/Petrochemical Integration-A New Paradigm Joseph C. Gentry, Director - Global Licensing Engineered to Innovate
Refining/Petrochemical Integration-A New Paradigm Introduction The global trend in motor fuel consumption favors diesel over gasoline. There is a simultaneous increase in demand for various petrochemicals
More informationGTC TECHNOLOGY WHITE PAPER
GTC TECHNOLOGY WHITE PAPER Refining/Petrochemical Integration FCC Gasoline to Petrochemicals Refining/Petrochemical Integration - FCC Gasoline to Petrochemicals Introduction The global trend in motor fuel
More informationWeekly Petroleum Status Report
DOE/EIA-0208(2015-34) Distribution Category UC-98 Data for Week Ended: August 14, 2015 Weekly Petroleum Status Report EIA DATA ARE AVAILABLE IN ELECTRONIC FORM The tables in the Weekly Petroleum Status
More informationFuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Issue 24, Volume 8
Fuel Focus Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices Issue 24, Volume 8 December, Copies of this publication may be obtained free of charge from: Natural Resources
More informationWhat you might have missed Bioenergy Situation & Outlook
What you might have missed Bioenergy Situation & Outlook Ag Lenders Conference David Ripplinger Fall 2018 Record US Corn Ethanol Production Record US Corn Ethanol Exports Expanding US Corn Ethanol Capacity
More information02/02/2011
www.fundamentalpetroleumtrends.com 2/2/211 WEEKLY GASOLINE FUNDAMENTAL-PRICE-BASIS OUTLOOK A Fundamental Petroleum Trends Weekly Report Lehi German Tel: 816..98 www.fundamentalpetroleumtrends.com Wednesday,
More informationStudy on Relative CO2 Savings Comparing Ethanol and TAEE as a Gasoline Component
Study on Relative CO2 Savings Comparing Ethanol and TAEE as a Gasoline Component Submitted by: Hart Energy Consulting Hart Energy Consulting 1616 S. Voss, Suite 1000 Houston, Texas 77057, USA Terrence
More informationYour Fuel Can Pay You: Maximize the Carbon Value of Your Fuel Purchases. Sean H. Turner October 18, 2017
Your Fuel Can Pay You: Maximize the Carbon Value of Your Fuel Purchases Sean H. Turner October 18, 2017 Agenda Traditional Funding Mechanisms vs. Market- Based Incentives for Renewable Fuels and Electric
More informationReducing GHG Emissions Through National Renewable Fuel Standards
Reducing GHG Emissions Through National Renewable Fuel Standards Transportation Research Board 2010 Environment and Energy Conference Robert Larson, USEPA First Renewable Fuel Standards Established by
More informationBiofuels, Energy Security, and Future Policy Alternatives. Wally Tyner
Biofuels, Energy Security, and Future Policy Alternatives Wally Tyner Purdue University Ethanol Economics Ethanol has value as energy and as an additive to gasoline The energy content is about 68% of gasoline
More informationFuture Funding The sustainability of current transport revenue tools model and report November 2014
Future Funding The sustainability of current transport revenue tools model and report November 214 Ensuring our transport system helps New Zealand thrive Future Funding: The sustainability of current transport
More informationA summary of national and global energy indicators. FEDERAL RESERVE BANK of KANSAS CITY
THE U.S. Energy DATABOOK A summary of national and global energy indicators JULY 1, 17 FEDERAL RESERVE BANK of KANSAS CITY SUMMARY OF CURRENT ENERGY CONDITIONS The number of total active drilling rigs
More informationCalifornia Environmental Protection Agency. Air Resources Board. Low Carbon Fuel Standard (LCFS) Update 2015 CRC LCA of Transportation Fuels Workshop
California Environmental Protection Agency Air Resources Board Low Carbon Fuel Standard (LCFS) Update 2015 CRC LCA of Transportation Fuels Workshop Anil Prabhu October 27-28, 2015 Overview of Presentation
More informationBiofuel Taxes, Subsidies, and Mandates: Impacts on US and Brazilian Markets
Iowa State University Digital Repository @ Iowa State University CARD Staff Reports CARD Reports and Working Papers 5-22-2013 Biofuel Taxes, Subsidies, and Mandates: Impacts on US and Brazilian Markets
More informationSystems. In-line Blending. Solutions you can trust
In-line Blending Systems In-line Blending Solutions you can trust Blending In-line Blending In-line Blending is the controlled, continuous mixing of a number of components to produce a finished product
More informationMarch 18, Samira Monshi Seungwon Noh Wilfredo Rodezno Brian Skelly
March 18, 2013 Samira Monshi Seungwon Noh Wilfredo Rodezno Brian Skelly Overview Project Objective Stakeholder Feedback Review of Alternative Jet Fuel Supply Chain Options Under Consideration 2 Project
More informationAssessment of Summer 1997 Motor Gasoline Price Increase
DOE/EIA-0621 May 1998 Assessment of Summer 1997 Motor Gasoline Price Increase Washington DC 20585 This report was prepared by the, the independent statistical and analytical agency within the Department
More informationThe Biodiesel Leader. Renewable Energy Group, Inc. (888) REG /13_00k
The Biodiesel Leader Renewable Energy Group, Inc. (888) REG-8686 www.regi.com Renewable Energy Group and REG are registered trademarks of Renewable Energy Group, Inc. BIOHEAT is a registered trademark
More informationCopyright 2018 Renewable Energy Group, Inc. AFOA Biomass Based Diesel Market Trends
AFOA Biomass Based Diesel Market Trends Agenda Production Trends Modest and steady growth in biodiesel Potential Growth in RD, timeline is uncertain Co-processing volume yet to materialize Market Trends
More informationEPA and RFS2: Market Impacts of Biofuel Mandate Waiver Options
July 2012 EPA and RFS2: Market Impacts of Biofuel Mandate Waiver Options FAPRI MU Report #04 12 Providing objective analysis for over 25 years www.fapri.missouri.edu Published by the Food and Agricultural
More informationThe Hybrid and Electric Vehicles Manufacturing
Photo courtesy Toyota Motor Sales USA Inc. According to Toyota, as of March 2013, the company had sold more than 5 million hybrid vehicles worldwide. Two million of these units were sold in the US. What
More informationFunding Scenario Descriptions & Performance
Funding Scenario Descriptions & Performance These scenarios were developed based on direction set by the Task Force at previous meetings. They represent approaches for funding to further Task Force discussion
More informationThe Energy Independence and Security Act (EISA): Proposed Changes to the Renewable Fuel Standard Program (RFS2)
The Energy Independence and Security Act (EISA): Proposed Changes to the Renewable Fuel Standard Program (RFS2) Presentation to the NAS Biofuels Workshop Madison, WI. June 23-24, 2009 1 Agenda Background
More informationRenewable Fuel Standard Program (RFS2) 2010 and Beyond
Renewable Fuel Standard Program (RFS2) 2010 and Beyond February 2010 Office of Transportation and Air Quality US Environmental Protection Agency 1 Overview Key Changes Required by EISA Key Highlights of
More information