The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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DATELINE lation, as well as long-term solutions pro- moting efficiency and renewable energy and removing barriers preventing domestic energy independence. “Congress and the president have to stop ‘kicking the can’ down the road,” Collura said. The home heating industry has also laid the groundwork for a grassroots campaign to address factors rising energy prices. NEFI has already invited its members to visit its online Legislative Action Center,where they can send a letter urging Congress to take action on domestic energy security, to fully fund new commodity trading rules included in last year’s new Wall Street reform law, to investigate monetary policy on rising com- modity prices and to lay off rhetoric threatening new regulations and taxes on the energy industry. EIA: RETAIL DIESEL PRICE POSTS FIRST DECREASE OF 2011 Diesel prices fell for the first time in 16 weeks, albeit a small decrease, with the national average down just a tenth of a cent from the week before, according to the March 23 issue of “This Week in Petroleum,” published by the Energy Information Administration (EIA).At $3.91 per gallon, the diesel price is $0.96 per gal- lon higher than last year at this time. Diesel prices were mixed across the country,with prices falling less than a penny on the East Coast,Gulf Coast, and in the Midwest. Prices in the Rocky Mountains were up almost four cents.The average on the West Coast was also up on the week,adding over a penny to last week’s price. The U.S. average retail price of regular gasoline decreased half of a cent versus last week, the first decline since January 31,2011. At $3.56 per gallon,gasoline is $0.74 per gal- lon higher than last year at this time. The biggest decrease was on the Gulf Coast, where the gasoline price fell almost two cents.The gasoline average on the East Coast lost a penny on the week and the Midwest price was down just under a cent.Moving in the other direction, the West Coast aver- age moved up about two cents. In the Rocky Mountains,the price was almost three cents higher than last week. Despite this increase, the gasoline price in the Rocky Mountains remained the lowest in the country at $3.39 per gallon. The most expensive gasoline among the major regions is on the West Coast,where the average retail price is $3.86 per gallon. The EIA also took note of fighting in Libya and a tsunami that struck Japan and led to radiation leaks at nuclear energy plants there.Besides the humanitarian con- cerns, the EIA observed, Libya and Japan are “vital links in the global energy supply chain. The disruption to normal economic and productive activities in both countries carries worldwide consequences.” Here is more on that, slightly edited, from the weekly report: “Libya’s importance to world oil mar- kets derives primarily from its role as North Africa’s second largest producer of crude oil and liquids (1.8 million barrels per day (bbl/d) in 2010), and as a net exporter of high quality crude oil, mostly — though not exclusively — to the European market. Japan looms large mostly as a consumer of crude oil and refined products and other energy inputs. Libya is a supply story, whereas Japan is mainly about demand. “The questions in Libya are how long the fighting will last, whether the produc- tion infrastructure will suffer any lasting damage,and what type of energy landscape will emerge from the confrontation. So far, buyers of Libyan oil - for the most part, European refiners - have been able to mud- dle through and do without. But it is becoming increasingly clear that this is more than a passing crisis,and the market will need to make adjustments for the longer term. “Japan is an industrial behemoth and the world’s third largest oil consuming econ- omy behind the United States and China, with 2010 estimated oil consumption aver- aging 4.4 million bbl/d. While the earthquakes and tsunami have spared its industrial heartland, the nation’s entire CALENDAR OF EVENTS MAY Atlantic Region Energy Expo May 3-5, 2011 Atlantic City Convention Center Atlantic City, NJ www.areetradeshow.com FW Webb Vermont All-State Expo May 5th Seminary Hill Barre,VT For more info, call Ray DiPirro, (781) 665-1967 NAOHSM's 58th Annual Convention and Trade Show May 22-26, 2011 Hershey, PA www.naohsm.org JUNE 34th North American Heating & Energy Expo June 7 – 8 Boston,MA www.nefiexpo.com National Association of Oil Heating Service Managers and Associates Mini Trade Show Tuesday, June 28 Francis Farms 27 Francis Farm Rd.Rehoboth,Mass. economy has been affected - as have been, to an extent still unclear, the many economies that depend on it for inputs or as an outlet for their own production. Initial assessments suggest the market impact will likely be two-tiered. First, the disaster will cause a temporary reduction in Japanese oil demand…” “In the longer term, however, market expectations are that the Japanese disaster will cause oil demand to rebound in order to support reconstruction efforts when they get underway and make up for some part of the loss in nuclear power generation.” FUEL OIL NEWS (ISSN 0016-2396), Canada Publication Mail Agreement #1588621, is published monthly by Bev-Al Communications, Inc. 1030 W. Higgins Road, Suite 230, Park Ridge, Il 60068. Circulated free of charge to qual- ified individuals in the oil heating industry in the United States. Additional and/or personal copies are available on a paid subscription basis only. 1-year subscription rates: $28.00 USA. $40.00 Canada and Mexico via service postage. $90.00 other foreign countries via air-mail postage. Single copies: $8.00 U.S. via first-class postage. $12.00 other Canada/Mexico/Foreign via airmail postage. Payable in US currency. Periodicals postage paid at Park Ridge, IL and additional mailing offices. Copyright 2011 by Bev-Al Communications, Inc. Reproduction of any portion or portions of this publication is specifically prohibited without written consent. POSTMASTER: return address changes to Circulation Department, FUEL OIL NEWS, P.O. Box 2121, Skokie, IL 60076-7821 4 APRIL 2011 | FUEL OIL NEWS | www.fueloilnews.com