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 U.S.rEFiNErSrUNNiNgMOrE DOMESTiCCrUDE;iMpOrTS DECliNEDiN2012 FEAturEd NEWs With refinery runs remaining relatively high, U.S. refiners are running an increasing amount of domestically produced crude oil, according to the Energy Information Administration (EIA). However, the crude oil import reduction trend is not geographically uniform. Most of the decline in imported crude oil occurred in the Gulf Coast and East Coast regions, while Midwest imports rose, the EIA noted in This Week in Petroleum, a report issued on March 20. Here is more from the report: At 8.5 million barrels per day (bbl/d), U.S. crude oil imports in 2012 were the lowest for any year since 1997, as growing domestic crude oil production drove a 444,000 bbl/d (5.0 percent) decline from the 2011 import level. Since peaking in 2005 at 10.1 million bbl/d, U.S. crude oil imports fell in six of the subsequent seven years, amounting to a total decline of more than 1.6 million bbl/d (16.1 percent). Over the same period, net crude runs at U.S. refineries fell only 200,000 bbl/d (1.4 percent). As a result, imports represented 57 percent of crude oil run in U.S. refineries in 2012, down from 67 percent in 2005. Reductions in the use of imported crude oil were most apparent along the Gulf Coast, home to about half of the nation's refining capacity. Imported crude runs in this region were 4.5 million bbl/d in 2012, representing 58 percent of total crude runs, down from 80 percent in 2005. EIA's weekly data indicate that that trend is continuing and accelerating in 2013. Average Gulf Coast crude oil imports for the four weeks ending March 1 dropped below 3.4 million bbl/d, the lowest four-week average since 1992. From 2005 to 2012, East Coast refinery runs of imported crude decreased 735,000 bbl/d (46 percent). That decrease was almost matched by a 685,000 bbl/d decrease in overall East Coast crude runs. Recently, the large price differentials between landlocked crudes with growing production, such as Bakken, and global seaborne crudes that are linked to NEFI announces new national policy agenda AHRI heating and cooling equipment data Much of the growth in domestic production has been light low-sulfur crude oil, a suitable and more economic substitute for the Brentprice-linked Nigerian grades, which have lost competitiveness in U.S. import markets. The United States has also reduced imports of heavy high-sulfur crude from Mexico and Venezuela and light low-sulfur crude from Angola and the United Kingdom. Berks-Schuylkill Oil Heat Association donation NEFiANNOUNCESNEWNATiONAl pOliCyAgENDA American Energy Coalition update NEFI has announced a new national public policy agenda for 2013 and to correspond with the start of the 113th Congress and the second term of the Obama administration. The New England Fuel Institute's (NEFI) new policy agenda calls for an unbiased and "all-of-the-above" approach to American energy; measures to renew market stability and confidence; and regulatory relief for small energy providers. The NEFI Board of Directors unanimously approved the new agenda at their quarterly meeting on Thursday, Feb. 28, 2013 in Waltham, Mass. NEFI's agenda is revised annually to respond to changes in the political and public policy landscapes in the Northeast and Washington, DC. An edited portion is offered below: 2013 National Public Policy Agenda The New England Fuel Institute (NEFI) continues to be a strong voice and fierce advocate for its mostly small business member-dealers. NEFI remains committed to advancing the national public policy goals of the heating oil industry in the region and in Washington, DC. This public policy agenda, which is approved annually by NEFI's Board of Directors, is meant to provide a comprehensive yet flexible framework for our legislative and regulatory efforts and to communicate the industry's interests to lawmakers, regulators and the general public. It prioritizes those issues that most dramatically affect our members, with the ultimate goal of preserving a strong, vibrant and competitive marketplace for years to come. An "All-of-the-Above" Approach to American Energy The once unfathomable dream of North American energy freedom is within reach. Refiners running more domestic crude ADD Systems celebrates 40 years BioDiesel blending facility opening HVAC/water heating tax credit Carlin Combustion training schedule the price of Brent have encouraged refiners to bring more domestically produced crude into the region via rail. In 2012, 92 percent of crude oil run in East Coast refineries was imported, down from 99 percent in 2005. Opposite this trend, the Midwest has been importing significantly more crude oil since 2005. In 2012, runs of imported crude oil reached 1.7 million bbl/d, an increase of 205,000 bbl/d (14 percent). In 2005, almost 34 percent of imported crude oil run in the Midwest was shipped to the Midwest via another region, most commonly by pipeline from the Gulf Coast; however, by 2012, nearly all imported crude processed in the Midwest was imported directly from Canada. While total U.S. crude imports have been decreasing, imports from Canada have gone up 775,000 bbl/d since 2005. The United States imported 2.4 million bbl/d of Canadian crude oil in 2012, or about 28 percent of total U.S. crude imports. In addition to crude from Canada, crude imports from Colombia, Kuwait, and Brazil also increased; however, imports from other major suppliers declined since 2005. U.S. imports from Nigeria have fallen 671,000 bbl/d (62 percent) since reaching almost 1.1 million bbl/d in 2005. This decline in imports of Nigerian crude has been split fairly evenly between the Gulf Coast and East Coast. www.fueloilnews.com | FUElOilNEWS| April2013 3