Archive for the ‘jet fuel’ Category

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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The new American Airlines may trim the jet fuel hedges off

Sometimes airlines are just like any neighborhood.

If all your neighbors have a dream car (or Dreamliner), you’ll want one, too. If all your neighbors have internet access (at 30,000 feet), you’ll want it, too. If all your neighbors have hedges for their yards (or jet fuel), you’ll want that, too.

So what’s the latest neighborhood gossip? It’s whether the new owner of the biggest house (airline) on the block (in the world) is going to try and keep up with the Joneses. At least when it comes to those hedges.

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Chicago jet fuel prices soar to highest in the world

Airlines flying from Houston to Chicago may want to load up on something other than passengers at the start of the trip — extra jet fuel.

Landlocked Chicago has the highest jet fuel price by far of any major spot market in the world, thanks mostly to refinery issues. At $129.13 a barrel Wednesday, May 22, it was $10 higher than the closest region, the perennially short North West Europe. In gallons, it was at $3.0745, or 35.55 cents higher than the highly liquid US Gulf Coast.

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Making money in Hawaii’s oil market is like pushing a boulder up a volcano

They like to say around the Platts office in Houston that California is an island.

An economic island, that is. The kind where the spot prices of gasoline and other refined fuels are insulated from the bob and weave of trades in the rest of the United States.

It’s an interesting analogy. But consider how fuel economics are affecting a real-live island right now: Oahu.

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