September 15, 2008
Volume: 12
Issue: 18
Top Stories
Market Report: Hurricane Ike Slams Texas, Spot Prices Jump
Lower Ship CO2 Seen Offsetting Higher Refinery CO2 from Low-Sulfur Marine Gasoil
IEA: Europe’s Diesel/Gasoline Supply Imbalance Likely to Worsen
India’s Price Controls Could Snag Diesel Desulfurization; 2-Tier Pricing Scheme Would Cut Refiner Losses
Around the world of Diesel
CARB Delays ‘Low Carbon Fuel Standard’ Vote Until March 2009:
Mexico’s 2008 Diesel, Gasoline Price Subsidies Could Pay for 4 New Refineries:
Diesel Version of Tata’s Super-Cheap ‘Nano’ Mini-Car Coming in Fiscal 2010:
Sinopec, PetroChina Cannot Make Refining Profit Unless Crude Oil Falls Well Below $95/Barrel:
Suncor Trims Alberta Low-Sulfur Diesel Output Due to Hydrogen Plant Shutdown:
Reaction Design Launches ‘Model Fuels Consortium 2’:
U.S. District Court Refuses to Block California Ports Diesel Truck Cleanup Program:
Philippines Refiners Not Recovering Diesel Fuel Losses:
Costa Rica Has Highest Retail Diesel Prices in Central America:
ExxonMobil Wins U.S. Patent on Diesel/Biodiesel Blend Cetane Detection Device:
Navistar Posts Record 3q 2008 Earnings Despite Sharp Decline in Ford Pickup Truck Diesel Engine Sales:
Mazda Brags of 2009 Clean-Diesel Car for Euro-5:
Ford ‘Ka’ Diesel Version to Debut at Paris Auto Show:
Subaru Shows Off 2 New Diesels at Paris Show:
Kia Confirms Diesel ‘Crossover’ Car Coming to Europe in 2009:
CARB Petitions US EPA for Permission to Implement Off-Road Diesel Emission Regulations on Existing Engines:
Zeolyst Completes Expansion of Emissions-Control, Refinery Catalyst Plants:
Texas Council on Environmental Quality (TCEQ) Approves Lower-Cost Version of Oryxe Additive for ‘Texas Low Emissions Diesel’ (Tx-LED):
GM Diesel Director Charlie Freese Explains U.S. 2010 Clean-Diesel Pickup Engine in New Video:
Navistar Capitalizing on Diesel Bus Growth Outside of N. America:
More News
ULSD Production Dips, Stocks Fairly Steady
Brasil Environment Ministry Proposes 10-ppm Sulfur ULSD by 2012
U.S. EIA Foresees ~38-Cent Diesel Premium to Gasoline in ‘09
Car-Buyers: Diesel Now ‘Greener’ in 2008 vs. 2003; Oil Savings Could Skyrocket
Diesel-Fueled Power Generation Soaring in Venezuela; Exports Falling
U.S. Transport Cost Index Dips Along with Diesel Prices
Volvo Shows Off New Low-CO2 Diesel Cars Hitting EU Market
Nissan, Mitsubishi Re-Launch Clean-Diesel Car Sales in Japan
Nano-PM Health Study Wasn’t Based on Emissions from DPF-Equipped Diesel
Russia’s GAZ Buys Penske’s 50% Share in Diesel Engine Maker VM Motori
‘Smart’ Driving Could Slash U.S. Truck Diesel Fuel Consumption, Costs
Regulation
EU Parliament Committee Demands 2nd-Generation Biofuels
Diesel Truck Operators Propose Alternative to World’s Most Ambitious Retrofit/Replacement Scheme
Technology
UOP Inks Biomass Pyrolysis Deal with Ensyn
Delphi Brags Its ‘Direct-Acting’ Piezo Injector Makes Euro-6 Easier; Cuts Fuel Consumption, Emissions
6 Coal/Biomass-to-Liquids R&D Projects Win U.S. DOE Funds
Key Prices
Distillate Watch

Top Stories

Market Report: Hurricane Ike Slams Texas, Spot Prices Jump

As Hurricane Ike roared across the Gulf Coast and struck Texas last week, it didn’t cause the massive destruction to oil, gas and refining infrastructure like that of Hurricane Katrina three years ago.

As a result, oil prices didn’t react so strongly – and expert forecasters are seeing the likelihood of continuing oil demand weakness in coming months, anyway.

Full Story >>

Lower Ship CO2 Seen Offsetting Higher Refinery CO2 from Low-Sulfur Marine Gasoil

A new study by marine ship emissions investigators at Rochester (N.Y.) Institute of Technology (RIT) and University of Delaware finds that the mandatory desulfurization of heavy marine bunker fuel – as proposed by International Maritime Organization Marpol Annex-6 amendments – won’t make much net CO2 emissions difference.

Full Story >>

IEA: Europe’s Diesel/Gasoline Supply Imbalance Likely to Worsen

International Energy Agency’s just-released “IEA Energy Policies Review for the European Union” report finds that Europe’s diesel/gasoline supply imbalance is likely to continue getting worse.

Full Story >>

India’s Price Controls Could Snag Diesel Desulfurization; 2-Tier Pricing Scheme Would Cut Refiner Losses

Staggering losses imposed on India’s refiners by government price controls on diesel and gasoline are prompting new calls for desulfurization deadline delays.

According to a Press Trust of India report this month, Indian Oil Corp. (IOC) confirmed that it will meet the Euro-4 (50-ppm sulfur maximum) deadline for diesel and gasoline for the mandated seven mega-cities of Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Ahmedabad as of April 1, 2010.

Full Story >>

Regulation

EU Parliament Committee Demands 2nd-Generation Biofuels

European Parliament’s key Industry Committee voted 50-2 on Sept. 11 to require that 40% of all biofuels used to meet a 10% biofuels blending target by 2020 would have to be “second-generation” – not using food crops – or else include renewable electricity or hydrogen for motor fuel.

The decision thus could help pave the way for refinery hydrotreating of non-food oils and fats to make “renewable diesel,” as well as biomass-to-liquids (BTL) Fischer-Tropsch diesel – rather than conventional rapeseed, palm or soy methyl-ester biodiesel.

Full Story >>

Diesel Truck Operators Propose Alternative to World’s Most Ambitious Retrofit/Replacement Scheme

California Air Resources Board (CARB) is mulling an alternative regulatory proposal from a broad coalition of business trade associations called “Driving Toward a Cleaner California.”

The proposal would delay or modify several provisions in what would be the world’s most ambitious scheme to slash emissions from tens of thousands of existing diesel on-road vehicles.

Full Story >>

Around the world of Diesel

CARB Delays ‘Low Carbon Fuel Standard’ Vote Until March 2009:

Full Story >>

Mexico’s 2008 Diesel, Gasoline Price Subsidies Could Pay for 4 New Refineries:

Full Story >>

Diesel Version of Tata’s Super-Cheap ‘Nano’ Mini-Car Coming in Fiscal 2010:

Full Story >>

Sinopec, PetroChina Cannot Make Refining Profit Unless Crude Oil Falls Well Below $95/Barrel:

Full Story >>

Suncor Trims Alberta Low-Sulfur Diesel Output Due to Hydrogen Plant Shutdown:

Full Story >>

Reaction Design Launches ‘Model Fuels Consortium 2’:

Full Story >>

U.S. District Court Refuses to Block California Ports Diesel Truck Cleanup Program:

Full Story >>

Philippines Refiners Not Recovering Diesel Fuel Losses:

Full Story >>

Costa Rica Has Highest Retail Diesel Prices in Central America:

Full Story >>

ExxonMobil Wins U.S. Patent on Diesel/Biodiesel Blend Cetane Detection Device:

Full Story >>

Navistar Posts Record 3q 2008 Earnings Despite Sharp Decline in Ford Pickup Truck Diesel Engine Sales:

Full Story >>

Mazda Brags of 2009 Clean-Diesel Car for Euro-5:

Full Story >>

Ford ‘Ka’ Diesel Version to Debut at Paris Auto Show:

Full Story >>

Subaru Shows Off 2 New Diesels at Paris Show:

Full Story >>

Kia Confirms Diesel ‘Crossover’ Car Coming to Europe in 2009:

Full Story >>

CARB Petitions US EPA for Permission to Implement Off-Road Diesel Emission Regulations on Existing Engines:

Full Story >>

Zeolyst Completes Expansion of Emissions-Control, Refinery Catalyst Plants:

Full Story >>

Texas Council on Environmental Quality (TCEQ) Approves Lower-Cost Version of Oryxe Additive for ‘Texas Low Emissions Diesel’ (Tx-LED):

Full Story >>

GM Diesel Director Charlie Freese Explains U.S. 2010 Clean-Diesel Pickup Engine in New Video:

Full Story >>

Navistar Capitalizing on Diesel Bus Growth Outside of N. America:

Full Story >>

More News

ULSD Production Dips, Stocks Fairly Steady

U.S. Energy Information Administration’s (EIA) latest weekly surveys of U.S. refiner and importer supplies of ultra-low sulfur diesel (<15-ppm sulfur ULSD) shows that despite hurricane-caused shutdowns, ULSD output and stocks fell only slightly.

Full Story >>

Brasil Environment Ministry Proposes 10-ppm Sulfur ULSD by 2012

Brasil’s Minister of Environment Carlos Minc proposed Sept. 10 that diesel fuel would have to meet a 10-ppm sulfur (Euro-5) limit by 2012 rather than by 2017.

As reported by the official Agencia Estado news service, Minc made the announcement at a meeting of the national environment council (Conama).

Full Story >>

U.S. EIA Foresees ~38-Cent Diesel Premium to Gasoline in ‘09

U.S. Energy Information Administration’s latest Short-Term Energy Outlook foresees that U.S. retail diesel fuel will average around $4.26/gallon in 2009, versus an average $3.88/gallon for regular gasoline.

Full Story >>

Car-Buyers: Diesel Now ‘Greener’ in 2008 vs. 2003; Oil Savings Could Skyrocket

A July 2008 survey of more than 1,000 U.S. potential car-buyers found that about half of them believe diesels are more environmentally friendly today than the diesels of five years ago.

In contrast, when asked the same question in 2003, only 30% thought diesels had become more environmentally friendly over the prior five years, as Yankelovich Partners analyst Hal Quinley explained during a Diesel Technology Forum (DTF) webinar last week.

Full Story >>

Diesel-Fueled Power Generation Soaring in Venezuela; Exports Falling

Venezuela’s use of diesel fuel for power generation is up a whopping 28.6% this year according to the official office of Office of Operation of Interconnected Systems (OPSIS).

As cited in a report from El Universal (Caracas), the rise of diesel fuel almost exactly mirrors the decline in heavy fuel oil consumption in power generation.

Full Story >>

U.S. Transport Cost Index Dips Along with Diesel Prices

Austin, Texas-based uShip last week released August 2008 results from its Transportation Price Index (TPI), showing that the cost of shipping goods in the U.S. fell 13%, to $2.41 per ton-mile.

“This month's decline puts the TPI well below its August 2007 level of $2.58, a drop of 6.59%,” uShip said.

Full Story >>

Volvo Shows Off New Low-CO2 Diesel Cars Hitting EU Market

At the Paris auto show next month, Volvo will display its new diesel variants of the C30, S40 and V50 1.6D DRIVe, claiming fuel consumption of just 4.4 litres/100 kilometers (C30) or 4.5 litres/100 km (S40 and V50).

Production of the cars will start in late 2008, Volvo said.

Full Story >>

Nissan, Mitsubishi Re-Launch Clean-Diesel Car Sales in Japan

Nissan and Mitsubishi announced that following years of absence from the domestic diesel car market, they’re re-launching clean-diesel models meeting Japan’s tough “Post New Long-Term Regulation” 2009 emissions standards.

Full Story >>

Nano-PM Health Study Wasn’t Based on Emissions from DPF-Equipped Diesel

A University of Michigan (U-M) study that found health effects problems from nanoparticle (nano-PM) emissions (see Diesel Fuel News 9/1/08) wasn’t based on actual nano-PM emissions from the new diesel engines equipped with high-efficiency diesel particle filter (DPF) technology.

Full Story >>

Russia’s GAZ Buys Penske’s 50% Share in Diesel Engine Maker VM Motori

In a further sign of the growing stature of the Russian automotive industry, car maker GAZ Group announced Sept. 3 that it bought Penske Corp.’s remaining 50% share in Italy-based diesel engine developer/producer VM Motori.

The other half of VM is owned by General Motors, since GM bought a 50% interest from Penske last year.

Full Story >>

‘Smart’ Driving Could Slash U.S. Truck Diesel Fuel Consumption, Costs

A truck driver using smart driving practices could slash $25,000/year from diesel fuel costs, according to a new American Trucking Associations (ATA) analysis.

As explained by ATA chief economist Bob Costello to the recent EBE Technologies Driving Action, Delivering Results, conference in Oak Brook, Ill., a U.S. long-distance (120,000 miles/year) heavy-duty trucker could achieve better than 7 miles/gallon with good driving practices.

Full Story >>

Technology

UOP Inks Biomass Pyrolysis Deal with Ensyn

Refinery technology giant UOP on Sept. 10 signed a letter of intent with Ensyn Corp. to form a joint venture to offer technology and equipment to convert “second-generation biomass” into bio-oil for power generation, heating fuel and eventually conversion into transportation fuels.

Full Story >>

Delphi Brags Its ‘Direct-Acting’ Piezo Injector Makes Euro-6 Easier; Cuts Fuel Consumption, Emissions

Delphi announced Sept. 2 that it is introducing what it calls the “world’s first” direct-acting piezo diesel injectors that will make it easier for vehicle makers to meet upcoming Euro-6 emissions limits while saving on fuel.

Full Story >>

6 Coal/Biomass-to-Liquids R&D Projects Win U.S. DOE Funds

U.S. Dept. of Energy (DOE) on Sept. 3 announced that it will provide funds for six projects involving conversion of coal and coal-biomass mixtures to syngas and then to liquids (CBTL).

DOE’s National Energy Technology Laboratory (NETL) will manage the projects. Technologies evolving from the R&D could aid the development of CBTL Fischer-Tropsch diesel projects.

Full Story >>

Key Prices

Distillate Watch

Full Story >>