Fauser Energy Resources

Short Term Energy Outlook

2012-01-10T13:57:00.002-06:00

Highlights

This edition of the Short‐Term Energy Outlook is the first to include forecasts for 2013.

·        EIAexpects the price of West Texas Intermediate (WTI) crude oil to average about$100 per barrel in 2012, $5 p er barrel higher than the average price lastyear. For 2013, EIA expects WTI prices to continue to rise, reaching $106per barrel in the fourth quarter of next year. EIA’s forecast assumesthat U.S. real gross domestic product (GDP) grows by 1.8 percent in 2012 and2.5 percent in 2013, while world real GDP (weighted by oil consumption) growsby 2.9 percent and 3.8 percent in 2012 and 2013, respectively.
·        Theforecast of average household heating expenditures for all heating fuels hasbeen lowered from th e first forecast for the current winter published in the October 2011 Outlook,primarily as a result of thewarm first half of this heating season. Average household heating oilexpenditures are now expected to increase by 4 percent this winter heatingseason (October 1 to March 31) compared with last winter. In contrast,natural gas and propane expenditures are projected to decline by 7 percent and1 percent, respectively, and electricity expenditures are 2 percent lower thanlast winter’s levels.
·        EIAexpects regular‐grade motor gasoline retail prices to average $3.48 per gallonin 2012, 4 cents per gallon lower than last year, and $3.55 per gallon in2013. During the April through September peak driving season each year,prices are forecast to average about 5 cents per gallon higher than the annualaverage. There is regional variation in the forecast, with averageexpected prices on the West Coast about 25 cents per gallon above the nationalaverage during the April through September period.

· Naturalgas working inventories continue to set new record highs and ended December2011 at an estimated 3.5 trillion cubic feet (Tcf), about 12 percent above thesame time last year. EIA’s average 2012 Henry Hub natural gas spot priceforecast is $3.53 per million British thermal units (MMBtu), a decline ofalmost $0.50 per MMBtu from the 2011 average spot price. EIA expects thatHenry Hub spot prices will average $4.14 per MMBtu in 2013.

http://www.eia.gov/forecasts/steo/

Contact: Tancred Lidderdale
tancred.lidderdale@eia.gov    phone:(202) 586-7321

THIS WEEK IN PETROLEUM REPORT RELEASE – October 26, 2011

2011-10-26T15:14:00.000-05:00

Brazil will beresponsible for some of the world's largest increases in oil production in thecoming decades. Advances in seismic imaging have enabled the discovery ofoffshore "pre-salt" deposits of oil in Brazil's Campos and SantosBasins (Figure 1). These pre-salt fields, so-called because they lieunder massive layers of salt, are located 18,000 feet below the ocean floorunder more than 6,000 feet of salt. Brazil already produces 2.1 millionbarrels per day (bbl/d) of crude oil and lease condensate, yet just became anet exporter in 2008. Pre-salt development, coupled with the ability tomeet a large share of domestic demand with biofuels, is projected to transformthe country into a major oil exporter.

Short-Term Energy Outlook October 12, 2011 Release

2011-10-12T09:47:00.000-05:00

Highlights

 EIA projects average household heating expenditures for natural gas, propane, and heating oil will increase by 3 percent, 7 percent, and 8 percent, respectively, this winter (October 1 to March 31) compared with last winter, while electricity heating expenditures fall by less than 1 percent. Average expenditures for households that heat with oil are forecast to be higher than in any previous winter.

 This forecast reflects higher prices for natural gas, propane, and heating oil, and slightly milder weather than last winter in much of the Nation contributing to lower consumption in many areas (see EIA Short Term Energy and Winter Fuels Outlook slideshow).

 According to the National Oceanic and Atmospheric Administration’s (NOAA) most recent projection of heating degree-days, the lower-48 States are forecast to be 2 percent warmer during the October through March winter heating season compared with last winter. However, heating degree-day projections vary widely among regions, with the West projected to be about 3 percent colder than last winter, and the South projected to be about 5 percent warmer.

 Forecast U.S. real gross domestic product (GDP) grows by 1.5 percent this year and by 1.8 percent next year, slightly lower than in last month’s Outlook. World oil-consumption-weighted real GDP grows by 3.0 percent and 3.5 percent in 2011 and 2012, respectively, compared with 3.1 percent and 3.8 percent in the last Outlook. EIA expects the U.S. average refiner acquisition cost of crude oil to average $99 per barrel in 2011 and $98 per barrel in 2012, compared with $100 per barrel and $103 per barrel, respectively, in the previous Outlook.

 Natural gas working inventories ended September 2011 at 3.4 trillion cubic feet (Tcf), about 2.6 percent, or 91 billion cubic feet (Bcf), below the 2010 end-of-September level. EIA expects that working natural gas inventories will approach last year’s high levels by the end the injection season. The projected Henry Hub natural gas spot price averages $4.15 per million British thermal units (MMBtu) in 2011, $0.24 per MMBtu lower than the 2010 average. EIA expects the rate of growth in domestic natural gas production to slow in 2012, with the Henry Hub spot price averaging $4.32 per MMBtu.

Contact:

Tancred Lidderdale
tancred.lidderdale@eia.gov
phone: (202) 586-7321

Short-Term Energy Outlook

2011-07-12T11:40:00.000-05:00

July 12, 2011 Release

Highlights

· World crude oil prices initially fell following the June 23 announcement by the International Energy Agency (IEA) that its member countries would release up to 60 million barrels from strategic reserves but then rose above the pre-announcement levels in late June and early July. Attributing observed price changes since June 23 to the IEA announcement is difficult because other drivers, including changing expectations of world economic and crude oil consumption growth, uncertainty over oil supply disruptions, estimates of OPEC spare production capacity, and other physical and financial factors are continually affecting oil prices. Although the IEA release will provide some additional supply, EIA expects oil markets to tighten through 2012. Given projected world oil demand growth and slowing growth in supply from countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC), the projected U.S. average refiner acquisition cost of crude oil rises from $102 per barrel in 2011 to $108 per barrel in 2012, about $1 per barrel below last month’s Outlook.

· The regular-grade gasoline monthly average retail price fell from $3.91 per gallon in May to $3.68 per gallon in June, reflecting the decline in crude oil prices from their April peak and a recovery from unexpected refinery outages and Mississippi River flooding. EIA expects regular-grade gasoline prices will average $3.62 per gallon and $3.51 per gallon over the third and fourth quarters of 2011, respectively.

· Natural gas working inventories ended June 2011 at 2.5 trillion cubic feet (Tcf), about 8 percent, or 214 billion cubic feet (Bcf), below the 2010 end-of-June level. EIA expects that working gas inventories will build strongly during the summer and approach record-high levels in the second half of 2011. The projected Henry Hub natural gas spot price averages $4.27 per million British thermal units (MMBtu) in 2011, $0.12 per MMBtu lower than the 2010 average. EIA expects the natural gas market to begin tightening in 2012, with the Henry Hub spot price increasing to an average of $4.54 per MMBtu.

http://www.eia.doe.gov/emeu/steo/pub/contents.html

Chinese Oil Demand 101: The Role of Electricity

2011-06-23T17:35:00.003-05:00

Despite recent decreases in crude oil prices and concern over the pace of economic growth in Organisation for Economic Co-operation and Development (OECD) countries, supply and demand fundamentals underlying the oil market remain strong. Far from reducing their expectations of global oil demand growth for 2011, the U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook and other forecasters have recently raised their demand projections. EIA is currently projecting global oil demand to average 88.4 million barrels per day (bbl/d) in 2011, 1.7 million bbl/d higher than in 2010. Of that increment, China alone is expected to account for some 700 thousand bbl/d. Why such strong growth, and why the upward revisions, given that most forecasters are becoming, if anything, slightly less optimistic about China's economy?

U.S. Oil Import Dependence: declining no matter how you measure it

2011-05-25T14:39:00.000-05:00

U.S. oil import dependence is an issue perhaps as hotly debated as it is loosely defined. As discussed in a This Week in Petroleum article published in 2008, there is more than one way of measuring it. Different methods of calculation yield different results. But whichever way it is defined, U.S. dependence on imported oil has dramatically declined since peaking in 2005, continuing a trend that was beginning to emerge the last time This Week In Petroleum examined the issue. By the broadest measure, U.S. dependence on imported oil fell below the 50 percent mark last year for the first time since 1997. To put it succinctly, discrepancies in the way dependence is assessed arise because oil, for the most part, is imported as crude oil, but is consumed as refined products, of which crude oil is the main but not the only input - hence the need to clarify whether dependence is assessed at the output/consumption level or at the input level, and in the latter case what range of inputs is included as a basis for comparison. Two of the most common and straightforward definitions measure dependence as the ratio of total net oil imports (including crude and products) to total product consumption, or much more narrowly as the ratio of net imported crude oil to net crude oil inputs to refineries.

2011-05-11T09:44:00.000-05:00

Short-Term Energy Outlook

May 10, 2011 Release

Highlights

West Texas Intermediate (WTI) crude oil spot prices averaged $89 per barrel in February, $103 per barrel in March, and $110 per barrel in April. During the first week of May WTI crude oil prices fell by nearly $17 per barrel to $97 per barrel, along with a broad set of commodities, and then rebounded by almost $6 per barrel yesterday. However, EIA still expects oil markets to continue tighten through 2012 given projected world oil demand growth and slowing growth in supply from countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC). Projected WTI spot prices average $103 per barrel in 2011 and $107 per barrel in 2012, reductions of about $4 and $6 per barrel respectively from last month’s Outlook.

Despite the moderate downward revision to the outlook for oil prices, the rise in crude oil prices from last year continues to imply higher petroleum product prices this year compared with last. EIA forecasts that the annual average regular-grade retail gasoline price will increase from $2.78 per gallon in 2010 to $3.63 per gallon 2011 and to $3.66 per gallon in 2012. The forecast regular-grade motor gasoline retail price averages $3.81 per gallon during this summer’s driving season (from April 1 through September 30), up from $2.76 per gallon last summer, but 5 cents per gallon lower than last month’s Outlook. The forecast U.S. monthly average regular gasoline price during the summer peaks in June at $3.88 per gallon. Prices of futures and options contracts for wholesale gasoline over the 5 days ending May 5 suggest a 41-percent probability that the national monthly average retail price for regular gasoline could exceed $4.00 per gallon during July 2011.

Natural gas working inventories ended April 2011 at 1.8 trillion cubic feet (Tcf), about 11 percent, or 230 billion cubic feet (Bcf), below the 2010 end-of-April level. EIA expects that working gas inventories will build strongly during the summer and approach record-high levels in the second half of 2011. The projected Henry Hub natural gas spot price averages $4.24 per million British thermal units (MMBtu) in 2011, $0.15 per MMBtu lower than the 2010 average. EIA expects the natural gas market to begin tightening in 2012, with the Henry Hub spot price increasing to an average of $4.65 per MMBtu.

To see details of this forecast update, go to the following World Wide Web site on the Internet:
http://www.eia.doe.gov/emeu/steo/pub/contents.html

Contact:
Tancred Lidderdale
tancred.lidderdale@eia.gov
phone: (202) 586-7321

or

Neil Gamson
neil.gamson@eia.gov
phone (202) 586-2418

Short Term Energy Outlook from EIA; April 12, 2011

2011-04-15T10:11:00.000-05:00

West Texas Intermediate (WTI) crude oil spot prices averaged $89 per barrel in February and $103 per barrel in March. The WTI price has continued to rise in recent days, reaching $112 on April 8. Crude oil prices are currently at their highest level since 2008. EIA expects oil markets to continue to tighten over the next two years given expected robust growth in world oil demand and slow growth in supply from non-Organization of the Petroleum Exporting Countries (non-OPEC) countries. These conditions result in an expected drawdown of global petroleum stocks and a call for increasing production from OPEC member countries, which will reduce surplus crude oil production capacity at a time when the disruption of crude oil exports from Libya and continuing unrest in other Middle East and North African (MENA) countries already highlight significant supply risks. Projected WTI prices average $106 in 2011 and $114 per barrel in 2012, increases of $5 per barrel and $9 per barrel, respectively, from last month's Outlook.

The rise in crude oil prices is reflected in higher petroleum product prices. EIA projects that the retail price of regular-grade motor gasoline will average $3.86 per gallon during this summer’s driving season (the period between April 1 and September 30), up from $2.76 per gallon last summer. EIA forecasts the annual average regular retail gasoline price will increase from $2.78 per gallon in 2010 to $3.70 per gallon in 2011 and to $3.80 per gallon in 2012. Current market prices of futures and options contracts for gasoline suggest a 33-percent probability that the national monthly average retail price for regular gasoline could exceed $4.00 per gallon during July 2011.

Natural gas working inventories ended March 2011 at 1.6 trillion cubic feet (Tcf), slightly below the 2010 end-of-March level. EIA expects that working gas inventories will remain relatively high throughout 2011. The projected Henry Hub natural gas spot price averages $4.10 per million Btu (MMBtu) in 2011, $0.29 per MMBtu lower than the 2010 average. EIA expects the natural gas market to begin to tighten in 2012, with the Henry Hub spot price increasing to an average of $4.55 per MMBtu.

The ABCs of crude supply disruptions

2011-03-03T10:09:00.002-06:00

Released: March 2, 2011; by the US EIA, (Energy Information Association)
Link to EIA page and this article

For the people of Libya, with life, death, and the future of their country in the balance, the price of oil probably doesn't rank as a top concern at present. However, recent price movements suggest that the oil markets are closely following events in Libya and elsewhere in North Africa and the Middle East. Oil prices have risen from the first signs of disquiet in Tunisia to the fall of Egyptian President Mubarak to the violence and power shift in Libya, which has significantly disrupted that country's field production and exports. Libya produced about 1.65 million barrels per day (bbl/d) of crude oil in 2010, or approximately 2 percent of global supply, while net exports (including all liquids) were roughly 1.5 million bbl/d. The incomplete information coming from Libya has not spared the oil sector, and the market grasp of the scope of disruption has been less than precise, with estimates of production declines in the middle of last week ranging from 500,000 to 700,000 bbl/d to a near total shutdown. But even an exact measurement of the crude oil, product, and natural gas shortfall in Libya would, at best, provide a partial sense of its significance. The market impact of such a supply disruption goes beyond volumetric loss and entails many different factors, which we begin to sort out below.

Crude volume versus crude quality
Although oil is generally seen as a fungible, in fact, crude comes in many different grades of varying qualities and product yields. Libya's importance to the oil market stems not only from its substantial production, but also from the light, sweet quality of its crude grades. Es Sider, its largest stream, has a slightly lower gravity than benchmark grades Brent and West Texas Intermediate (WTI), (meaning that it is a slightly heavier grade of crude) but a slightly lower sulfur content (meaning that it is sweeter). Another Libyan grade, Sirtica, is lighter than Brent and WTI. Light crudes are, generally speaking, the easiest to process and can be run by relatively "simple" refineries that may not be able to handle heavier or sourer substitutes. A loss of light, sweet crude volumes is, as a rule of thumb, more difficult to deal with than a loss of heavier and sourer ones. This is not only because the refineries that run light, sweet grades have limited feedstock flexibility, but also because most of the spare crude production capacity tends to be at the heavy, sour end of the barrel. Fortunately, current utilization rates for U.S. refineries suggest that there is a significant margin of spare capacity at "complex" refineries that could be used to process heavy, sour crude oil.

Market outlet and destination
Although the majority of Libya's oil output and most of its natural gas production goes to Europe, its crude market reach is wider, extending all the way to China. But the ultimate impact of any crude disruption goes beyond the immediate buyers of that specific oil. As buyers find substitute supplies for the disrupted oil, those replacement barrels, in turn, are diverted from their original use or destination, causing secondary impacts. Should it be prolonged, a disruption in Libyan exports could have a larger effect on U.S. oil supply sources than the relatively small volumes of Libyan crude actually imported into the United States would suggest. Unlike Libyan production, more than a third of Algeria's light, sweet crude (a possible substitute from fields relatively close to Libya's) is shipped to U.S. refiners, which sometimes use it as a blending stock to lighten heavier crude grades. Should those volumes find a stronger market in Europe, U.S. end-users would have to look for alternate supplies. Light, sweet Nigerian crude, which depending on market conditions can wind up in the United States, Europe or Asia, is another case in point. Global crude oil flows will tend to adjust to best match demand needs with available supply sources.

Short haul versus long haul
Location is another important factor affecting the impact of a disruption. The closer the fields where a disruption is occurring are to their market outlet, the more immediate the disruption's impact on oil inventories and prices is likely to be, unless an alternate supply source equally close to market can be found. In December 2002 and early 2003, a worker strike that curtailed Venezuelan production was immediately felt in the United States, a short-haul destination. Substitute imports from distant Saudi Arabia took weeks to arrive. The rerouting of supplies increased shipping distances, tying up tankers for longer voyages and further tightening a shipping market that had already been firming even before the event. In contrast, while there can be indirect effects on long haul markets from localized substitution, those long haul effects would be comparatively subdued.

Crude versus products
Another way in which a disruption in one market sends ripples through others is via the product markets. Much of the Libyan crude oil refined in Mediterranean refineries is re-exported as product after processing by export-oriented refineries. Italy is Libya's top crude oil customer, with Libyan crude oil accounting for roughly a quarter of Italy's total crude imports. But the volume of its refined product exports exceeded that of its Libyan crude imports. Should the disruption force Italian and other refiners to decrease their runs, a sustained disruption in Libyan exports could result in decreased Italian product exports to other markets, tightening product markets well beyond the Mediterranean basin. At this time, however, Italian refinery runs have not been visibly affected by the current disruption.

Market conditions
The impact of a supply disruption is greatly affected by underlying market conditions, such as supply and demand balances, commercial and strategic stock inventory levels, and spare production, transportation and refining capacity. In 1973, the Arab oil embargo had an acute market impact because demand had been growing steeply and the market was already tight even before the event. But in 1967, an earlier Arab oil embargo ended in failure because the market was much more slack. The current disruption is occurring against a context of relatively comfortable spare capacity. Oil inventory levels are generally high by historical standards. But they are not evenly distributed throughout the world and are markedly tighter in Europe, the primary market for Libyan crude, than in North America. The European Brent market had been tightening before the start of unrest. In contrast, spare capacity in both transportation and refining remains abundant, which makes it possible to carry substitute barrels at a relatively low cost over long haul routes and to process barrels of a lesser quality than Libyan crude.

Seasonality
Because demand and supply are both subject to seasonal cycles, the time of year of a supply disruption affects its impact. The current disruption is occurring in a relatively low-demand season. Should it be prolonged, it could conflict with a seasonal ramp up in refinery production ahead of the peak summer driving season. Crude maintenance in the North Sea and elsewhere is also relatively low in the first quarter.

Strategic reserves
Countries with strategic reserves of crude oil and/or petroleum products must decide whether or not to release them in response to a disruption. The decision is a complex one whose potential benefits must be weighed against costs that include a reduction in pressure on suppliers with spare capacity to increase output, and a lower amount of reserves available for use in the future. Most of Europe's strategic oil reserves are held in products at refinery sites. The United States also holds its strategic reserves in both light and heavy crudes which can meet a variety of market needs.

Transit corridors
A supply disruption does not necessarily come in the form of a loss at the wellhead, but can result from a transit blockage. Although Egypt is not a large exporting country, it is important to the oil markets as a transit corridor. Earlier this year, as unrest mounted in Egypt, the market grew concerned that oil traffic though the Suez Canal and the SUMED pipeline might be halted. A significant amount of internationally traded oil moves through a number of chokepoints, such as the Strait of Hormuz, the Strait of Aden, the Strait of Gibraltar, the Bosporus and the Malacca Strait, to name a few of the most well known, where it is vulnerable to bottleneck and transit risks. Unrest in Yemen might raise market worries about disruption in the Strait of Aden; although repeated attacks by Somali pirates have already taken a toll on local traffic, oil has continued to flow. In the past, Iran has occasionally raised the threat of retaliating by disrupting tanker traffic in the Persian Gulf if it came under attack. However, even during the Iran-Iraq war, oil continued to flow through Hormuz.

Domino effects
Unrest in one country can raise concerns about potential disruptions in another through a perceived risk of "contagion." Unrest and upheaval in economies that are non-critical to global oil supply might nevertheless rattle the markets by causing worries that they might spread to neighboring or politically- or culturally-related countries that may be of greater importance to energy market participants.

Market impact
Just as many factors may shape the market impact of a disruption, that impact may manifest itself through a variety of channels. Changes in prompt crude prices are just the most visible and immediate one. Other effects have to do with changes in the relative value of prompt oil supplies across the quality and grade spectrum, changes in the crack spread (the difference between crude prices and product prices) and in the time spreads, or shape of the futures curve. A loss of crude volumes with a high distillate yield will cause distillate prices, not just crude prices, to rise. A supply disruption can cause the price of prompt barrels to rise relative to that of barrels for later delivery - thus pushing the futures curve into backwardation, as opposed to contango (when futures prices are higher further into the future). Changes in the futures curve, in turn, carry implications for inventories and oil trade flows.

Retail gasoline and diesel prices surge
The U.S. average retail price of regular gasoline gained 19 cents versus last week, marking the second largest weekly increase since the EIA began tracking weekly retail price data in 1990. The only week posting a larger increase was in September 2005 when retail prices rose sharply due to Hurricane Katrina. At $3.38 per gallon, gasoline is now $0.68 per gallon higher than last year at this time. Prices in the Midwest jumped almost 23 cents, the biggest increase in the country. The Gulf Coast followed closely behind, with gasoline prices in the region gaining 22 cents on the week. The East Coast saw an increase of over 18 cents, while the West Coast gasoline price advanced 14 cents. The smallest increase this week was in the Rocky Mountain region, where the price rose 11 cents, making gasoline in the Rocky Mountains the lowest in the country at $3.18 per gallon. The most expensive gasoline among the major regions is on the West Coast, where the average retail price is $3.62 per gallon.

Diesel prices rose for the thirteenth consecutive week with the U.S. average retail price adding more than 14 cents to last week's price. At $3.72 per gallon, diesel is $0.86 per gallon higher than last year at this time. Diesel was up across the country, with the biggest increase coming on the West Coast where prices jumped 16 cents over last week. Diesel on the East Coast and Midwest increased more than 14 cents, in line with the national per gallon average increase. The Gulf Coast diesel price registered a gain of over 13 cents while the Rocky Mountains saw diesel increase an even 13 cents.

Residential heating oil prices increase sharply
Residential heating oil prices continued to rise during the period ending February 28, 2011. The average residential heating oil price increased to $3.76 per gallon, nearly a $0.14 per gallon over last week and $0.86 per gallon more than last year at this time. Wholesale heating oil prices increased by $0.21 per gallon last week, reaching a price shy of $3.05 per gallon. This is $0.93 per gallon higher than last year's price.

The average residential propane price increased by more than $0.04 per gallon to reach a price just under $2.86 per gallon. This was an increase of $0.18 per gallon compared to the $2.68 per gallon average from the same period last year. Wholesale propane prices jumped nearly $0.29 with the overall price at $1.69 per gallon. This was an increase of $0.34 per gallon compared to the March 1, 2010 price of $1.35 per gallon.

Propane stocks fall as heating season nears an end
Total U.S. inventories of propane declined 1.0 million barrels last week to end at 28.5 million as heating season in the U.S. winds down. The Midwest region had the largest stock draw of 1.3 million barrels of propane. The Rocky Mountain/West Coast region also had a draw of 0.1 million barrels. Meanwhile, the East Coast and Gulf Coast regions each added 0.2 million barrels of propane inventory. Propylene non-fuel use inventories represented 9.1 percent of total propane inventories.

Short Term Energy Outlook

2011-01-17T10:34:00.004-06:00

Highlights

To see details of this forecast update, go to the following World Wide Web site on the Internet: http://www.eia.doe.gov/emeu/steo/pub/contents.html

This edition of the Short-Term Energy Outlook is the first to include forecasts (monthly, quarterly and annual) through December 2012.

EIA expects the price of West Texas Intermediate (WTI) crude oil to average about $93 per barrel in 2011, $14 higher than the average price last year. For 2012, EIA expects WTI prices to continue to rise, with a forecast average price of $99 per barrel in the fourth quarter 2012. EIA's forecast assumes U.S. real gross domestic product (GDP) grows 2.2 percent in 2011 and 2.9 percent in 2012, while world real GDP (weighted by oil consumption) grows by 3.3 percent and 3.7 percent in 2011 and 2012, respectively.

EIA expects regular-grade motor gasoline retail prices to average $3.17 per gallon this year, 39 cents per gallon higher than last year and $3.29 per gallon in 2012, with prices forecast to average about 5 cents per gallon higher in each year during the April through September peak driving season. There is regional variation in the forecast, with average expected prices on the West Coast about 25 cents per gallon above the national average during the April through September period. There is also significant uncertainty surrounding the forecast, with the current market prices of futures and options contracts for gasoline suggesting more than a 25 percent probability that the national average retail price for regular gasoline could exceed $3.50 per gallon in the June through September period in 2011 and an 8 to 10 percent probability that it could exceed $4.00 per gallon in August and September 2011.

Natural gas working inventories ended 2010 at 3.1 trillion cubic feet (Tcf), about 1 percent below the 2009 record-setting end-of-December level. Inventories are expected to remain at or near record-high levels through most of 2011. The projected Henry Hub natural gas spot price averages $4.02 per million Btu (MMBtu) for 2011, $0.37 per MMBtu lower than the 2010 average. EIA expects the natural gas market to begin to tighten in 2012, with the Henry Hub spot price increasing to an average $4.50 per MMBtu.

EIA expects average household expenditures for space-heating fuels to total $990 this winter, about $22 higher than last year. EIA projects higher expenditures for heating oil and propane, flat expenditures for natural gas, but lower expenditures for electricity. A forecast of milder weather than last winter in the South and the West leads to lower fuel consumption in those areas.

EIA projects that U.S. carbon dioxide (CO2) emissions from fossil fuels, which increased by 3.8 percent in 2010, will decline by 0.6 percent in 2011. EIA expects that CO2 emissions will increase by 2.4 percent in 2012 as consumption grows for all the fossil fuels. Projected fossil-fuel CO2 emissions in 2012 remain below the levels seen in any year from 2000 through 2008.

Short-Term Energy and Winter Fuels Outlook

2010-10-13T14:24:00.000-05:00

To see details of this forecast update, go to the following World Wide Web site on the Internet:
http://www.eia.doe.gov/emeu/steo/pub/contents.html

Highlights

EIA projects average household expenditures for space-heating fuels will total $986 this winter (October 1 to March 31), an increase of $24, or 2.5 percent, from last winter. EIA projects higher expenditures in all fuels except electricity, where expenditures decline by 2 percent. This forecast reflects moderately higher prices for all the fuels, although slightly milder weather than last winter for much of the Nation should contribute to lower consumption in many areas.

According to the National Oceanic and Atmospheric Administration’s (NOAA) most recent projection of heating degree-days, the lower-48 states are forecast to be 3 percent warmer during the October through March winter heating season compared with last winter and 1 percent warmer than the 30-year average (1971-2000). However, heating degree-day projections vary widely between regions. For example, the Northeast, the principal market for heating oil, is projected to be about 5 percent colder than last winter, while the South is projected to be about 15 percent warmer.

EIA expects the price of West Texas Intermediate (WTI) crude oil to average about $80 per barrel this winter, a $2.50-per-barrel increase over last winter. The forecast for average WTI prices rises gradually to $85 per barrel by the fourth quarter of 2011 as U.S. and global economic conditions improve. EIA’s forecast assumes U.S. gross domestic product (GDP) grows by 2.6 percent in 2010 and 2.1 percent in 2011, while world oil-consumption-weighted GDP grows by 3.8 percent and 3.3 percent, respectively, in 2010 and 2011.

Projected natural gas inventories reach more than 3.7 trillion cubic feet (Tcf) at the end of this year’s injection season (October 31). This projected volume will be about 3 percent lower than last year’s record-setting level but will still represent the second highest underground storage level on record for the month of October. The projected Henry Hub annual average spot price increases from $3.95 per million Btu (MMBtu) in 2009 to $4.47 in 2010 and $4.58 in 2011.

Iowa Biodiesel Economics June 2010.wmv

2010-06-23T16:48:00.000-05:00

THE WINNER OF FAUSER MADNESS 2010 IS CROWNED!!!

2010-04-06T10:11:00.004-05:00

Congratulations Mike. Deborah says it will be a pleasure to deliver the television to you!!

Thank you everyone for playing Fauser Madness and visiting us in our Hospitality Room. It was a great evening and a tournament full of surprises over the last few weeks.......we had so much fun!!!

Thank you again,
Paul, Glen, Darrell, Bruce, Jon, Deborah, Luke, Char, Judy and Angela

Rank Team Name Score Best Score Champion
1 Michael Hunke 121 121 Duke (125)
2 Rich Cannon 105 105 Duke (150)
3 Eric Stark 103 103 Duke (147)
4 Ron Williams 89 89 Kansas (142)
5 Scott Haller 86 86 Maryland (165)
6 Terri Lix 84 84 Kansas (103)
7 Larry Blaesi 82 82 Syracuse (149)
8 Charlie LaBelle79 79 Kansas (121)
9 Tim Lichti 75 75 Kansas (161)
10 Ken Schiemeyer 73 73 Kentucky (153)
11 Jen Schiermeyer 68 68 Kentucky (124)
12 Todd Schiermeyer68 68 Kansas (141)
13 Fred Bosselman68 68 Kansas (163)
14 Dan Halligan 66 66 Kansas (160)
15 Mike Jaberg 65 65 Kansas (146)
16 Ken Caldwell 64 64 Kentucky (159)
17 Doug Hall 63 63 Kansas (142)
18 Jack Hill 62 62 Kansas (161)
19 Darrell Wilhelm61 61 Villanova (123)
20 Troy Lindsey 61 61 Kansas (145)
21 Scott Bond 60 60 Kansas (103)
22 Randy Birchem59 59 Kansas (183)
23 Joan Schiemeyer55 55 Villanova (166)
24 Shelly Broekemeyer55 55 Kansas (172)
25 Masterhunter 54 54 Kansas (177)
26 Kelly Scott 52 52 Kansas (140)
27 John Hepler 52 52 Kansas (98)
28 Lauren Simmons46 46 Kansas (122)
29 Dan Cook 46 46 Kansas (154)
30 Rita Tracy 45 45 Texas (154)
31 Sheri Wetzel 40 40 Ohio St. (123)

10:30 a.m. Monday Market Update

2010-04-05T10:26:00.001-05:00

Crude   +1.83    $86.70
Diesel +0.0540   $2.2707
Gas     +0.0372   $2.3609

10:05 a.m. Wednesday Market Update

2010-03-31T10:05:00.001-05:00

Crude +0.33 $82.70
Diesel & Gas roll to the next month /
Consult with marketer 800-541-1226

11:30 a.m. Tuesday Market Update

2010-03-30T11:30:00.000-05:00

Crude +0.06 $82.23
Diesel +0.0027 $2.1215
Gas +0.0062 $2.2675

9:40 a.m. Tuesday Market Update

2010-03-30T09:38:00.000-05:00

Crude +0.41 $82.58
Diesel +0.0012 $2.1200
Gas +0.0122 $2.2735

12:30 p.m. Monday Market Update

2010-03-29T12:27:00.000-05:00

Crude +2.25 $82.27
Diesel +0.0588 $2.1285
Gas +0.0631 $2.2705

10:30 a.m. Monday Market Update

2010-03-29T10:26:00.001-05:00

Crude +2.47 $82.47
Diesel +0.0048 $2.1345
Gas +0.0616 $2.2690

9:50 a.m. Friday Market Update

2010-03-26T09:49:00.000-05:00

Crude -0.32 $80.21
Diesel -0.0023 $2.0670
Gas -0.0145 $2.2032

12:00 p.m. Thursday Market Update

2010-03-25T11:54:00.000-05:00

Crude +0.83 $81.44
Diesel +0.0154 $2.0861
Gas +0.0132 $2.2344

9:05 a.m. Thursday Market Update

2010-03-25T09:01:00.000-05:00

Crude +0.48 $81.09
Diesel +0.0104 $2.0811
Gas +0.0076 $2.2288

10:50 a.m. Wednesday Market Update

2010-03-24T10:45:00.002-05:00

Crude -1.30 $80.61
Diesel -0.0267 $2.0751
Gas -0.0438 $2.2193

8:25 am Wednesday Market Update

2010-03-24T08:21:00.000-05:00

Crude    -1.63   $80.28
Diesel -0.0390   $2.0628
Gas     -0.0473   $2.2155

1:35 p.m. Tuesday Market Update

2010-03-23T13:33:00.000-05:00

Crude +.28 $81.88
Diesel +0.0163 $2.1000
Gas +0.0044 $2.2606

1:10 p.m. Monday Market Update

2010-03-22T13:05:00.001-05:00

Crude +.35 $81.03
Diesel +0.0033 $2.0800
Gas -0.0029 $2.2528

12:10 p.m. Monday Market Update

2010-03-22T12:05:00.000-05:00

Crude      +.55    $81.23
Diesel   +0.0098 $2.0865
Gas      +0.0013 $2.2578

10:50 a.m. Monday Market Update

2010-03-22T10:52:00.000-05:00

Crude -.36 $80.94
Diesel -0.0089 $2.0784
Gas -0.0212 $2.2585

12:30 p.m. Friday Market Update

2010-03-19T12:28:00.001-05:00

Crude    -1.86   $ 80.34
Diesel  -0.0557 $2.1160
Gas     -0.0592 $2.3039

9:10 a.m. Friday Market Update

2010-03-19T09:09:00.000-05:00

Crude -.45 $81.75
Diesel -0.0163 $2.1160
Gas -0.0147 $2.3039

12:00 p.m. Thursday Market Update

2010-03-18T12:06:00.003-05:00

Crude    -.99    $82.85
Diesel  -0.0281 $2.1362
Gas     -0.0216 $2.3100

11:00 a.m. Thursday Market Update

2010-03-18T10:56:00.000-05:00

Crude -.84 $ 82.09
Diesel -0.0250 $2.1145
Gas -0.0202 $2.2895

11:25 a.m. Tuesday Market Update

2010-03-16T11:20:00.000-05:00

Crude + 1.92 $81.72
Diesel +0.0584 $2.1160
Gas +0.0574 $2.2802

9:00 a.m. Tuesday Market Update

2010-03-16T08:55:00.000-05:00

Crude +1.05 $80.80
Diesel +0.0309 $2.0885
Gas +0.0286 $2.2514

1:10 p.m. Monday Market Update

2010-03-15T13:07:00.000-05:00

Crude   -1.80    $79.44
Diesel  -0.0428 $2.0512
Gas     -0.0423 $2.2127

11:00 a.m. Monday Market Update

2010-03-15T10:57:00.000-05:00

Crude   -1.80 $79.44
Diesel   -0.0408 $2.0532
Gas      -0.0431 $2.2119

9:30 a.m. Monday Market Update

2010-03-15T09:24:00.001-05:00

Crude -1.40   $79.84
Diesel -0.0318  $2.0622
Gas   -0.0320   2.2230

1:45 p.m Friday Market Update

2010-03-12T13:41:00.001-06:00

Crude -0.85 = $81.25
Diesel -0.0190 = $2.0960
Gas -0.0185 = $2.2535

12:15 p.m. Friday Market Update

2010-03-12T12:11:00.000-06:00

Crude -.94 = $81.17
Diesel -0.0270 = $2.0880
Gas -0.0250 = $2.2470
Propane = no change

9:30 a.m. Friday Market Update

2010-03-12T09:27:00.001-06:00

Crude -0.11 = $82.00
Diesel unchanged = $2.1150
Gas -0.0014 = $2.2706

12:30 p.m. Thursday Market Update

2010-03-11T12:30:00.001-06:00

Crude = -0.38 > $82.04
Diesel = +0.0008 > $2.1170
Gas = -.0123 > $2.2278

10:00 am Thursday Market Update

2010-03-11T10:17:00.001-06:00

Crude = -.19
Diesel = +0.0041
Gas = -0.0150
Propane = +0.0200

Inventories and Markets

2010-03-10T10:30:00.003-06:00

Inventories for the week ending March 5, 2010
Crude up 1.4
Diesel down 2.2
Gas down 2.9
Propane down 1.5

Markets at 10:30 AM are
Crude up 1.22 to $82.70
Diesel is up .0370
Gas is up .0410
Propane is a no change to down a 1/2 cent

Please call if we can get any loads set up for you.

NEBRASKA Motor Fuels Tax Forms & Information

2010-03-09T15:49:00.001-06:00

Nebraska State Tax Rates, as posted on the World Wide Web. Visit the web site for Forms, Motor Fuel Code, Motor Fule Rules and Various Reports http://www.revenue.ne.gov/fuels/index.html

Current Fuel Tax Rates for —
•Gasoline, Gasohol, Diesel, Ethanol, and Compressed Fuels:
                 26.8 cents per gallon 1/1/2010 through 6/30/2010

•Aviation Gasoline:
                 5 cents per gallon

•Jet Fuel:
                 3 cents per gallon

Petroleum Release Remedial Action Fee (PRF)* —
•Gasoline, Gasohol, Ethanol, and Aviation Gasoline:
                 0.9 cents per gallon

•Diesel, Jet Fuel, and All Other Petroleum Products:
                 0.3 cents per gallon

*Note: PRF does not apply to Compressed Fuels

IOWA Motor Fuel Tax Forms and Information

2010-03-09T15:37:00.000-06:00

Iowa State Tax Rates, as posted on World Wide Web. Visit the web site for Forms, Motor Fuel Code, Motor Fuel Rules and Various Reports.
http://www.iowa.gov/tax/forms/motor.html#Monthly

Gasoline:
July 1, 2002, through June 30, 2003 - 20.1¢/gal
July 1, 2003, through June 30, 2004 - 20.3¢/gal
July 1, 2004, through June 30, 2005 - 20.5¢/gal
July 1, 2005, through June 30, 2006 - 20.7¢/gal
July 1, 2006, through June 30, 2007 - 21.0¢/gal
July 1, 2007, through June 30, 2008 - 20.7¢/gal
July 1, 2008, through June 30, 2010 - 21.0¢/gal

Ethanol Blended Gasoline:
19¢/gal

E85:
January 1, 2006, through June 30, 2007 - 17¢/gal
Effective July 1, 2007 - 19¢/gal

Other:
Aviation Gasoline: 8¢/gal
Special Fuel (diesel): 22.5¢/gal
Special Fuel (LPG): 20¢/gal.;
Special Fuel (aviation jet): 3¢/gal.;
Compressed Nat. Gas: 16¢/100 cubic feet.

EIA Short Term Energy Outlook -- March 09, 2010 Release

2010-03-09T12:29:00.001-06:00

To see details of this forecast update, go to the following World Wide Web site on the Internet:
http://www.eia.doe.gov/emeu/steo/pub/contents.html

Highlights

Although spot crude oil prices continue to fluctuate on a daily basis, EIA’s projections for West Texas Intermediate (WTI) crude oil spot prices have remained relatively stable over the last 4 Outlooks. EIA expects WTI prices to average above $80 per barrel this spring, rising to an average of about $82 per barrel by the end of the year and to $85 per barrel by the end of 2011.
Projected economic growth this year is higher in this forecast, with U.S. real gross domestic product (GDP) growing by 2.8 percent and world oil-consumption-weighted real GDP growing by 3.4 percent, compared with 2.3 percent and 2.7 percent growth, respectively, in last month’s Outlook. The 2011 forecast for real GDP growth is relatively unchanged at 2.6 percent and 3.5 percent for the United States and the world, respectively.
EIA forecasts that the annual average regular grade retail gasoline price will increase from $2.35 per gallon in 2009 to $2.84 in 2010 and to $2.96 in 2011 because of the projected rising crude oil prices. Average U.S. pump prices likely will exceed $3 per gallon at times during the forthcoming spring and summer driving season. Projected annual average retail diesel fuel prices are $2.96 and $3.14 per gallon, respectively, in 2010 and 2011.
EIA expects this year’s annual average natural gas Henry Hub spot price to be $5.17 per million Btu (MMBtu), a $1.22-per-MMBtu increase over the 2009 average. EIA projects price increases to continue in 2011, averaging $5.65 per MMBtu for the year. Projected working gas inventories end the first quarter of 2010 at about 1,550 billion cubic feet (Bcf) compared with 1,644 Bcf in the previous Outlook because of colder-than-normal weather in February. Natural-gas-weighted heating degree-days were nearly 11 percent above the 30-year norm last month.
The annual average residential electricity price changes only slightly over the forecast period, averaging 11.5 cents per kilowatthour (kWh) in both 2009 and 2010, and then rising to 11.6 cents per kWh in 2011.
Carbon dioxide (CO2) emissions from fossil fuels, which declined by 6.4 percent in 2009, increase by 1.5 percent and 1.2 percent in 2010 and 2011, respectively, in the forecast as economic growth fuels higher energy consumption.

Tuesday Noon NYMEX update

2010-03-09T12:15:00.000-06:00

Crude -.27 = 81.60
Diesel -.0080 = 2.0975
Gas -.0235 = 2.2657

3-9-2010 Markets

2010-03-09T12:00:00.005-06:00

Good Afternoon Everyone -

We have a few things for you.

First the market news at 12:05 PM (including the cash report)
Diesel is up .0025
Gas is down .0280
Propane is down around 2 cents
Crude oil is down .26, trading at $81.62

Second is a reminder to call us regarding special deals we have at some NuStar terminals. They can be a great savings to you and your business.

The last reminder is.......JOIN US FOR FAUSER MADNESS AT THE NEBRASKA CONVENTION NEXT TUESDAY EVENING. All you have to do is make your picks, fill out your bracket and you may win a 42" HDTV when the winner is crowned!!! We are looking forward to a great convention and hospitality room!!

UPDATE ON THE MARKETS

2010-03-05T12:34:00.004-06:00

Good Afternoon -

Just a quick note about what our markets are doing this afternoon.

At 12:40 PM
Crude is up $1.42 to $81.63.
Diesel is up .0289
Gas is up .0370

Please call us for additional updates this afternoon.

HELP GET INFO ON THE BLOG

2010-03-04T16:16:00.002-06:00

Everyone can comment. Some of us can add posts

2010 NPCA Annual Convention at the Embassy Suites Hotel and Convention Center in LaVista, Nebraska -- MARCH 16 - 17 2010

2010-02-22T10:57:00.000-06:00

Fauser Energy Resources and Dawson Oil Co employees, and their family members, are not allowed to partcipate in the contest. Participants are encouraged to attend the convention but not required.

Changing Distillate Export Patterns (TWIP) This Week In Petroleum; published by the (EIA) Energy Information Administration

2010-02-19T15:42:00.000-06:00

Distillate (including diesel) is the second largest petroleum product consumed in the United States, used for everything from fuel for trucks and trains to residential heating and even a small amount of power generation. Although still overshadowed by gasoline consumption within the United States, global trends have been rapidly increasing the demand for distillate. This is causing major changes in the United States’ role in the world distillate market.
For many years, the United States was a net importer of relatively small volumes of distillate, primarily from Canada and the Virgin Islands (Figure 1). Imports were generally seasonal, coinciding with greater demand for heating oil during the winter heating season when additional supplies from areas like Eastern and Western Europe and Latin America would occasionally surge.
This trade pattern changed significantly in the spring, summer, and fall of 2008 as wholesale prices for distillate soared above those for gasoline. Distillate prices have rarely been higher than gasoline during the summer months but, the summer of 2008 saw an unprecedented and sustained premium for distillate. A variety of factors were behind the unusually high margins. In South America, price controls were limiting Argentina’s production and export of natural gas, and a severe drought in Chile was reducing its hydroelectric generation. Distillate fuel for electrical generation was a convenient short-term substitute for these shortages. Prices began to rise quickly in the face of this extra demand, but several prominent distillate consumers, including China and India, shielded their domestic consumers from the increased costs through fuel subsidies and price controls. The normal economic process of higher prices encouraging reduced consumption was therefore muted or absent in these countries.
With distillate selling for more than gasoline from August 2007 through February 2009 (except during the hurricanes in September 2008), domestic refiners continued to increase distillate yields in 2008, nearly reaching an unprecedented 30 percent by the end of 2008 (Figure 2). From June through August 2008, distillate yields averaged almost 3 percent higher than typical, which resulted in about 380 thousand barrels per day of additional distillate production – a volume that was more than 10 percent of total U.S. distillate demand during those months. This extra production was occurring despite the fact that domestic demand had fallen over 9 percent compared to the previous year. Refiners were responding to a global, not a domestic, opportunity, continuing a dynamic that began in mid-2007. The United States became a distillate exporter, especially to South America and Western Europe. Net exports peaked in August 2008 at about 740 thousand barrels per day, before falling to some extent later in the year in the face of the coming winter heating season and a significant decline in wholesale prices due to the global economic downturn.
In 2009, the distillate market has returned somewhat toward earlier behavior. Distillate has once again been selling at a discount to gasoline this year as the world economy struggles. However, the United States has remained an exporter of distillate fuel. Net exports through July have averaged about 350 thousand barrels per day compared to almost 275 thousand barrels per day for the same period in 2008.
The results of these market changes are not easy to predict. Many of the issues that led to last summer’s distillate market swings are not expected to repeat regularly, but the broad trends are informative. The Energy Information Administration, the International Energy Agency, and others continue to project global distillate demand growing much faster than gasoline, especially in the developing world. The United States may therefore remain a distillate exporter for some time.

EIA Predicts no demand growth for fossil fuels in US

2009-12-14T10:43:00.000-06:00

Government energy forecasters see U.S. demand for petroleum fuels seeing no growth through the year 2035 in the absence of new policies mandating lower greenhouse gas (GHG) levels or higher efficiencies, the Energy Information Administration (EIA) said Monday.
Part of the forecast stems from talks in Copenhagen, Denmark, among international leaders to devise a global plan to cut GHG emissions. The projections suggest the implications for energy use in the event that not enough action is taken to reduce levels of gases widely held responsible for global warming.
The EIA now sees growth in liquid fuels demand through 2035 coming from biofuel production, with consumption of petroleum fuels holding essentially flat, according to a report from Dow Jones Newswires.
Ethanol production is forecast to grow to about 28 billion gallons a year by 2035, up from around 10 billion gal/year currently. That level falls below the 36 billion gal/year mandate for all biofuels by 2022. Failure to meet the mandates is due largely to the expected slow growth of advanced biofuel technologies, the report said.
Total U.S. energy use is forecast to grow 14% from 2008 levels by 2035, including a 5% decline from the economic recession. Fossil fuels are seen providing 78% of U.S. energy needs by 2035, down from the current 84%, due to efficiency gains.
Assuming OPEC holds onto a 40% share of the oil market, U.S. oil prices are expected to rise to around $133/bbl in 2008 dollars by 2035, pressured higher by global demand growth.

Ferrellgas Partners rejoins propane trade group - KansasCity.com

2009-12-03T14:33:00.000-06:00

Ferrellgas Partners rejoins propane trade group - KansasCity.com

EPA likely to increase the Ethanol blend to 15%

2009-12-02T11:43:00.000-06:00

The Environmental Protection Agency said Monday that it would probably increase the amount of ethanol that gasoline retailers could blend into ordinary fuel, to 15 percent, if tests established that the blend would not damage cars.

In a letter to Growth Energy, an ethanol trade association that filed the request for a higher blend in March, the E.P.A. said that “our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.” But the agency added that it would wait for the Energy Department to test a dozen vehicles, a task that should be completed in May.

Will the market finally show signs of weakness?

2009-11-02T09:43:00.000-06:00

Normal market trends are for gasoline to show signs of weakness as the refiners switch to winter grade gas. End of year weakness will normally cause a contango'd market to carry through the heating season; but this year, unexpected refinery problems and scheduled turnaround have kept prompt supplies of gasoline tight.
"The momentum is for a down start to the week unless we see more bids come into the market on the prompt side," said one trader. Other traders said that the market should return to the "seasonal normal" trend, which means it should begin to go into a winter contango. "It depends on how much gasoline imports you see coming in last week and the first half of November," a second trader said. The general market consensus is that the gasoline imports last week should be above 800,000 b/d, following three weeks of sub-par import levels.
Other traders anticipate that arbitrage hasn't brought in significant imports and not much has changed. Overall, anticipate the market to maintain until we see inventory values on Wednesday morning.

Gas & Diesel Prices (Week ended 10/28/09)

2009-10-28T21:18:00.001-05:00

Gasoline and Diesel Prices Still Climbing
The U.S. average price for regular gasoline increased for the third consecutive week, shooting up a dime to $2.67 per gallon. For the first time since October 20, 2008, the national average price is now higher than it was the year before. Nonetheless, the average was $1.44 below the all-time high price set on July 7, 2008. Prices increased in all the major regions of the country. On the East Coast, the average surged nearly 13 cents to hit $2.65 per gallon. The average for the Lower Atlantic portion of the East Coast went up even more, soaring 14 cents. The average in the Midwest shot up 12 cents to $2.66 per gallon. Despite an increase of 11 cents, at $2.55, the price on the Gulf Coast remained the lowest of any region. In the Rocky Mountains, the average rose six cents to settle at $2.58 per gallon. The smallest increase occurred in the West Coast, where the average rose just under two cents to $2.89 per gallon. The price in California was essentially unchanged at $2.99 per gallon. The national average price of diesel fuel climbed to $2.80 per gallon, a jump of a dime. Despite the increase, the average remained $0.49 below the price a year ago. Prices increased in all regions of the country. The averages on the East Coast, in the Midwest, and on the Gulf Coast all increased by about ten cents. At $2.82, the price on the East Coast was $0.58 below a year ago, while the Midwest average, at $2.79, was $0.45 less than the year-ago average. The price in the Gulf Coast remained the lowest of any region at $2.74 per gallon. The smallest increase of any region took place in the Rocky Mountains, where the price rose seven cents to $2.78 per gallon. On the West Coast, the average went up eight cents to $2.90 per gallon and the California price jumped nine cents to $2.97 per gallon.

Welcome!

2009-10-19T16:20:00.001-05:00

Thank you for visiting our blog! Please check back often to get the latest crude oil and natural gas industry news.