Fuel Oil News

Fuel Oil News November 2013

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dateline Biodiesel Production Tops 1 Billion Gallons New EPA statistics released show the biodiesel industry has cracked the 1 billion gallon mark for the third consecutive year, with several months of production remaining. "This is a tremendous achievement that is a testament to the hard work of the biodiesel industry and the success of the Renewable Fuel Standard (RFS) as an effective policy for diversifying our fuel supplies," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. "Biodiesel is proving that Advanced Biofuels are working now, and we need the Obama Administration and Congress to continue this success." Biodiesel is the first EPA-designated Advanced Biofuel to reach commercialscale production nationwide and 1 billion gallons of annual production. With plants in almost every state in the country, the industry has surpassed RFS targets since the program began while using an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats. The latest production figures, which cover volumes reported through September, show that the industry produced 140 million gallons in September, for a year-to-date biodiesel total of nearly 1.1 billion gallons. EPA's production volumes are reported under the Biomass-based Diesel category of the RFS. The monthly numbers show a total of nearly 167 million gallons under the Biomass-based Diesel category for the month of September. That total includes some 27 million gallons of renewable diesel, a diesel replacement similar to biodiesel that uses a different technology. For the year, total Biomass-based Diesel production under the RFS stands at more than 1.2 billion gallons, on pace to reach some 1.7 billion gallons by year's end, significantly exceeding the RFS requirement of 1.28 billion gallons. NBB is the U.S. biodiesel trade association. Last year, the industry supported some 50,000 jobs nationwide. Under the EPA's definition, Advanced Biofuels under the RFS must reduce greenhouse gas emissions by at least 50 percent compared with petro- Featured News Biodiesel production tops 1 billion gallons Petroleum demand rises PMAA elects 2014 Executive Committee API hails Supreme Court decision to review EPA carbon rules Bosch's Buderus celebrates 20 years Bradford White receives 2013 Innovation Award Roadnet releases MobileCast Proofof-Delivery app Honeywell's new Wi-Fi 9000 Thermostat New geothermal and HVAC graduate-level textbook leum diesel. The agency has determined that biodiesel's reduction is 57 percent to 86 percent. For more details on biodiesel's benefits, visit biodiesel.org. Petroleum demand rises in September and Q3 Total U.S. petroleum deliveries (a measure of demand) increased by 2.7 percent from September 2012 to average just above 18.6 million barrels per day in September, according to the American Petroleum Institute (API). For the third quarter, petroleum deliveries increased by 1.7 percent from the same period last year. "Demand for petroleum products remains consistent with a gradually improving economy," said API Chief Economist John Felmy. "Exports of refined products in particular continue to show strength over the previous year." Gasoline demand rose 2.1 percent in September and 1.2 percent in the third quarter from 2012 levels to average 8.7 million barrels per day. Demand also rose in September for distillate (3.8 percent), "other oils" (5.8 percent), and jet fuel (1.5 percent). At nearly 1.4 million barrels per day, jet fuel demand was the second lowest for the month in 20 years, since 1993. September residual fuel oil demand, however, fell 38.3 percent to 232 thousand barrels per day. This was the lowest September level on record and just 36 thousand barrels higher than the all-time low of 196 thousand barrels per day set in December 2012. Refinery gross inputs grew 6.2 percent from last September to the highest level for the month on record at nearly 16.2 million barrels per day. Exports of refined petroleum products rose 15.5 percent in September to the second highest level ever at nearly 3.7 million barrels per day. Gasoline production increased by 1.9 percent in September and 1.4 percent in the third quarter compared to last year. The production of 9.1 million barrels per day was the third highest September gasoline output on record. Distillate fuel production rose 8.1 percent from last year to a record for the month of 4.9 million barrels per day. This was also the second highest output level on record, just 104 thousand barrels below last month's all-time high of 5.0 million barrels per day. Year to date production of both gasoline and distillate reached all-time record highs in September, averaging just above 9.0 million barrels per day for gasoline and nearly 4.7 million barrels per day for distillate. Domestic crude production in September increased 18.6 percent in September and 18.7 percent in the third quarter, compared to 2012 figures. At nearly 7.8 million barrels per day, crude production saw its highest September output in 25 years. According to the latest reports from Baker-Hughes, Inc., the number of oil and gas rigs in the U.S. in September was 1,760, down from August count of 1,781. Crude oil stocks ended the month at 365.3 million barrels– a 1.3 percent drop from the prior year but still the second highest September level in 33 years, since 1980. Stocks of motor gasoline ended up 9.3 percent from last year to 219.5 million barrels. Distillate fuel oil stocks ended at 128.2 million barrels, up 0.6 percent from year ago levels. Jet fuel stocks were down by 7.3 percent from the prior year. U.S. total imports fell 4.4 percent from September 2012 to average just over 10.0 million barrels per day, marking the lowest level www.fueloilnews.com | FUEL OIL NEWS | NOVEMBER 2013 3

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