Archive for the ‘jet fuel’ Category

Privatization of key UK jet fuel pipeline could bring cash to expand capacity

It’s not every day an asset of strategic importance to the UK’s oil infrastructure is put on the market. Even less frequently will that asset come with a portfolio of clients including the UK Ministry of Defence, the US Air Force, oil majors and one of the largest international trading houses.

The sale of the Government Pipeline and Storage System, which supplies London’s Heathrow airport with aviation fuel, offers one such opportunity.

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US jet fuel demand hits blockbuster status

The US summer movie season has yet to see a true blockbuster, unless you count “Transformers.” But new data shows the summer jet fuel demand season has finally reached blockbuster status.

US jet fuel demand for the week ended July 4 spiked 8% to 1.799 million barrels a day for its highest level since November 2007, while stocks plummeted 4% to 35.6 million barrels for the lowest mark since May 2004, according to data released July 9 from the Energy Information Administration.

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Good ol’ heating oil: what is its future in the US?

Traditional heating oil may be in the last throes of popularity before it makes way for cleaner-burning fuels like natural gas or lower-sulfur distillate grades.

The product is not the chief heating fuel in the US–the Energy Information Administration estimates that about half of US households use natural gas as their primary heating fuel, compared with 6% using heating oil — but it has managed to cling to about a quarter of Northeastern households. That grip is slipping, though.

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Gas-to-Liquids jet fuel: military hurdles still to clear in Europe

When the latest version of one of the most-widely used specifications for aviation turbine fuel, Defence Standard 91-91, came into force just under a year ago, the inclusion of greater provisions for synthetic fuel blends was recognition by its guardian, the UK’s Ministry of Defence, of the need to cater for new sources of supply coming onto the market.

Chief among the new synthetic manufacturers is Pearl GTL, a joint venture between Royal Dutch Shell and Qatar Petroleum, which entered full production late in 2012. The facility was developed at a cost of $18-19 billion. It has the capacity to produce 140,000 b/d of gas-to-liquids products, including naphtha , gasoil and kerosene, making it the largest project of its type in the world.

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US Defense Department switching to civilian-grade jet fuel

The US military is jettisoning its jet propellant in favor of civilian-grade jet fuel.
 
With testing of civilian-grade jet A with additives nearly complete, 36 military bases in the US have converted away from the military-grade JP-8. The remaining more than 230 locations are slated to convert in 2014.
 

Do you want to know an oil refinery secret? Look to Twitter

It’s hard to keep the cat in the bag when you’ve got a few hundred people pulling its tail.

Consider what goes on behind the fence at a refinery. Sure, there’s always flaring, and steam being released, and hard-hatted workers rushing to and fro.

But what’s really up? The companies would rather the public didn’t know the nitty-gritty, mainly for the cause of staying competitive in a business where regulation and a general downdraft in gasoline prices always put considerable pressure on the bottom line.

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Weather freezes flights, but not jet fuel demand in US regions

Where are jet fuel prices most depressed because of the thousands of flight cancellations from major snowstorms and a cold snap that dropped temperatures in the US Midwest and Northeast below those in Antarctica?

Not Chicago, which saw a 5 cents/gallon rise from Christmas to January 7 in the jet fuel differential–the difference between the NYMEX ULSD futures contract and actual physical jet fuel barrels that will be delivered.

Not New York, where the differential spiked 10.8 cents/gallon from December 30 through the first week of 2014.

Not the US Gulf Coast, which produces half the US jet fuel and delivers a healthy chunk of that into both the above markets, and saw a 2.15-cent gain in the differential from Christmas through January 7.

Still guessing? Try sunny and warm Los Angeles.

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American-US Air deal driven more by fuel prices, not ticket prices

The long wedding march for US airlines is nearing its end, with all the marriages bringing much-needed discipline into the industry.

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US airlines supersize their rides, packing people onto bigger planes

Want to gauge how well US airlines are doing in controlling fuel costs? Try the word “gauge.”

US airlines all reported solid quarterly profits this week and again touted how they were able to hedge, refine, design, merge, cut or slim their way to fuel-efficient gains. That includes the term “upgauging” — basically the equivalent of supersizing snack meals for an industry that all but removed snacks, at least the free ones.

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US airlines find fuel for less in 2013…but not everywhere

Years of consolidation, capacity cuts, fuel efficient planes and other cost controls helped jet fuel prices glide downward in 2013. But some US markets have still felt turbulence.

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