Archive for the ‘jet fuel’ Category

The Oil Big Five: Waiting for June’s big oil news announcements

There are certain months that have obvious potential for big news, and June looks like one of them. November 2014 was another one, and this month’s iteration of The Oil Big Five follows up on many of the themes that were raised then.

We reached out to Platts oil editors and analysts worldwide to see what they were keeping an eye on in June, and these topics came back as immediate responses. We hope you’re tracking them as well, and be sure to leave us a comment and let us know your thoughts on the issues below or on Twitter, using the hashtag #oilbig5. If you’re not as concerned about these topics, then let us know what you are watching and what we should be watching as well.

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For US airline industry, a penny saved on jet fuel is $180 million earned

I flew two different airlines last week. Both were packed.

Despite Ebola fears. Despite high ticket prices. Despite a slowing global economy. Despite high jet fuel prices.

Wait. Scratch that last one.

Spot market jet fuel prices have plunged as much as 50 cents below the 2014 average.

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Takeoff, eh? At time of need, New York jet fuel heads to Canada

New York jet fuel prices spiked from mid-July through August, and new data gives more insight why. Blame Canada.

Canada may be sending everything from comedians and crude into the US. But in July, it took in a good bit of US jet fuel, mostly out of New York.

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US airlines are taking the hedge off on jet fuel

An old investing adage is to buy on the dips, a philosophy generally followed by US airlines in the hedging market over the years. This year? Not so much.

Jet fuel prices have declined in price and volatility so far in 2014. So has jet fuel hedging, at least in the US. What is essentially insurance on any airline’s single-largest cost has become seen as less than necessary.

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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. Read the rest of this entry »

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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