In early July, my flight back home to Houston after my first trip following the COVID-19 pandemic was canceled because the Colorado Springs airport ran out of jet fuel. What then seemed to me like a fluke event was actually part of a pattern that was replicated over the summer this year at several tourist […]
Latin America growing reliance on U.S. fuel exports: Part I Brazil
Latin America fuel supply hasn’t been able to meet the region’s fuel demand for the past several years mainly due to its refineries’ low utilization rates and a lack of investments in refinery upgrades and expansions. In addition, refining capacity has been insufficient in key Latin American countries. As a result, the region has been […]
ESG trends in refining
Environmental, Social, and Governance (ESG) issues have been all the rage in the oil and gas industry. These have impacted upstream, midstream, and downstream as we have written in the past. Refining is no exception and is facing considerable pressure. Last week, Phillips 66 and Marathon Petroleum both announced plans to partner with Southwest Airlines […]
Future of refining –Rationalize, reduce, and repurpose
The global refining sector has been severely hit by the outbreak of COVID-19 pandemic with dramatic cuts to fuel demand. In 2020, global oil demand was ~ 91.3 million barrels per day (MMbpd), almost 9% lower year over year. Most of the fuel demand destruction came from the transportation sector as countries across the world […]
Pandemic continues to push U.S. refinery closures and shift to renewable fuels
U.S. refiners and integrated oil majors have announced several permanent closures of refineries with some planning to convert them into renewable fuels plants. The trend that started in 2019 has accelerated recently due to extended transportation fuel demand losses induced by the COVID-19 pandemic. Over the past year, U.S. refiners and integrated majors have announced […]
Renewable diesel: The wave that keeps rising
Phillips 66 is planning to convert its San Francisco refinery in Rodeo, California into a plant that by starting 2024 will mainly produce renewable diesel along with some sustainable gasoline and jet fuel. The Rodeo refinery already has an existing renewable diesel project underway that is expected to be completed by 2021 and both projects […]
Will reshaping Latin American fuel markets threaten U.S. refined product exports?
Lower domestic fuel production coupled with rising fuel demand outlook has led Latin America to increasingly rely on U.S. fuel exports. However several dynamics in the region may pose challenges to these trade flows in the future. First Latin America is witnessing rapid growth in its biofuels production and fuel quality standards supported by regulations, […]
Will Latin America sustain the U.S. refined products growth story?
Marathon Petroleum is permanently closing its two U.S. refineries in Martinez, California and Gallup, New Mexico due to weaker fuels demand amid COVID-19 pandemic. Global demand for refined products fell significantly in 2020 due to the Coronavirus pandemic leaving refiners with surplus fuel inventories and a dramatic drop in refining margins. However, even before the […]
Top 10 ESG Trends in Energy
Investors and consumers are pressuring companies to seriously incorporate Environment, Social, and Governance (ESG) practices into their culture and operations. ESG has gone from a nice-to-have feature to a must-have pre-requisite as it is influencing investments and will ultimately decide winners and losers in the energy market going forward. The pressure of ESG is being […]
April 2020 Report – ADI Downstream Market Advisory
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