- Top Stories
- 1 Million Barrels/Day UCG/GTL Diesel Foreseen in Australia
- Greens Warn U.S. EPA: Don’t Ignore Land-Use Change GHG for Biofuels
- Market Report: Distillates Down in N. Am., Pacific; Slight Uptick in EU
- ADB: ULSD in Asia is Cost-Effective
- Around the world of Diesel
- CARB’s Next ‘Low Carbon Fuel Standard’ Workshop is Dec. 2:
- U.S. IRS Sets Feb. 9 Public Hearings on Biodiesel, Renewable Diesel Tax Credit Rules:
- Petrobras Reseachers Win Cetane Patent:
- Diesel Truckers Meeting with Natural Resources Canada on Regulating Refinery Shutdowns:
- China Reportedly Downplaying Diesel Car Future, Promotes Gasoline Hybrid-Electrics:
- Bolivia to Boost Diesel Imports:
- Big U.S. Diesel Truckstop Chain TA Posts 3q 2008 Profit Gain, but Fuel Sales Drop Sharply:
- China Yuchai Sees 13% Jump in Diesel Sales in 2008, but Weakness Seen Coming:
- BMW Touting Clean-Diesel Offerings for North America:
- More News
- IEA Report Sees GTL, CTL, Hitting 1.75 Million B/D by 2030
- Bunker Fuel Desulfurization or Stack Scrubbing? New Study Seeks Answers
- Preem: Diesel Refining Margins Soar, but Crude Inventory Value Hurts
- Renault-Nissan Alliance Unveil V6 dCi Diesel Engine for U.S., EU Markets
- Colombia Refinery Project Aims to Boost Diesel, Cut Fuel-Oil
- Truckers, Navistar Push Delay in U.S. EPA 2010 Diesel Truck Standards
- U.S. ULSD Output, Stocks Steady; High-Sulfur Increases
- U.S. Diesel Deliveries Drop 5.1% in October: Clear Sign of Recession
- U.S. Diesel Prices Seen Falling to $2.75/Gallon in 2009
- Navistar Writes-Down Ford Diesel Engine Business; Reorganizes Truck Group
- Refinery-Hydrotreated Renewable Kero-Jet Debuts; Licensing in 2009
- 500 Million Gallons of Biomass-Based Diesel in 2009: U.S. EPA Warning
- EU Biofuels Blending Could be Cut to 6%
- Green Groups: Any Auto Bailout Must Require High-MPG Vehicle Mandates
- Key Prices
- Distillate Watch
Australia’s Linc Energy announced Nov. 19 that it’s shifting its focus from Chinchilla (Queensland) to Arckaringa (South Australia) for potentially massive development of underground coal gasification (UCG) and gas-to-liquids (GTL) production.
“In terms of coal to liquids production, Linc Energy has initially located at least 8 to 10 key areas capable of operating a 100,000 barrels/day UCG to GTL facilities for approximately 60 years continuously,” Linc chairman Peter Bond said. “That’s over 1 million barrels a day of oil (diesel or jet fuel) production for approximately a generation.”
Six leading environmental advocacy groups warn U.S. EPA administrator Stephen Johnson not to bow to pressure from agricultural lobbies that want EPA to ignore indirect land-use change (LUC) greenhouse effects from biofuels mandates.
Middle distillate prices are falling all over the world, accompanied by falling demand.
The benchmark New York Mercantile Exchange (NYMEX) heating oil futures contract was hovering around $1.70/gallon Friday, while NYMEX ULSD for December was 7.5 cents/gallon higher.
Clean Air Initiative for Asian Cities (CAI-Asia) – funded by Asian Development Bank (ADB) – recommends slashing sulfur in diesel and gasoline as key to cutting air pollution.
U.S. EPA warned Nov. 14 that it expects U.S. fuel blenders to put 500 million gallons of biomass-based diesel into the U.S. diesel fuel pool in 2009.
Because EPA still hasn’t issued a notice of proposed rulemaking on the “RFS-2” program for renewable fuel blending, let alone finalized that rule, it’s expecting U.S. fuel blenders to follow the current “RFS-1” rule in 2009.
European Biodiesel Board on Nov. 14 criticized a European Council proposal to trim the 10% biofuels mandate to 6%.
“As negotiations between the European Parliament and the Council attempt to finalize one of the most ambitious package of EU policies, notably aiming at mitigating climate change, the Council of the EU is proposing to weaken the responsibility of fossil fuel suppliers to deliver greenhouse gas emission reductions,” EBB said.
Environment and energy-efficiency groups in the U.S. and Europe demand that if governments give big loans to help struggling automakers, then such cash must be tied to requirements that they produce higher-efficiency, low-CO2 vehicles.
Around the world of Diesel
International Energy Agency’s World Energy Outlook report, released Nov. 13, shows that coal-to-liquids (CTL) would account for about 1.1 million barrels/day of global “non-conventional” oil supplies by 2030.
Houston-based refining consultant Purvin & Gertz announced Nov. 19 it’s launching a study of the impacts of the new International Maritime Organization Marpol Annex-6 ship emissions/fuel amendments. The amendments either require heavy bunker fuel desulfurization or else on-board ship stack emissions scrubbing.
Swedish refiner Preem reported hefty refining margin gains on diesel/gasoil for third quarter 2008 compared to 3q 2007.
“Weighted business refining margin for the third quarter of 2008 increased to (U.S.) $7.84 $/bbl compared to $3.97/bbl in the third quarter of 2007,” Preem said.
Renault announced Nov. 19 the launch of the first diesel V6 engine developed and produced by the Alliance.
The engine “will equip upper-range vehicles to meet the growing worldwide demand for engines that are powerful and yet fuel and CO2 efficient,” Renault said.
Colombia’s state oil company Ecopetrol announced Nov. 17 that it will spend an estimated U.S. $344 million on a front-end engineering & design (FEED) contract with Foster Wheeler and Process Consultants Inc. for a project to upgrade its 250,000 barrels/day Barrancabermeja refinery to 300,000 b/d.
U.S.-based Owner-Operator Independent Drivers Association (OOIDA) on Nov. 19 issued a call to delay the U.S. EPA 2010 heavy-duty diesel truck emissions standards, saying the trucks will be too expensive.
Endorsing the call, big truck maker Navistar confirmed to Diesel Fuel News that it agrees that EPA ought to allow diesel truck makers to continue to offer lower-cost, EPA-2007 diesel trucks in 2010 along with the higher-cost EPA-2010 trucks, at least temporarily.
U.S. Energy Information Administration’s latest weekly survey of refinery production of middle distillate shows fairly steady output of ULSD and an increase in higher-sulfur diesel.
The biggest increase is in diesel/gasoil of >500-ppm sulfur, the survey shows.
“Downgrading” of ULSD to higher-sulfur diesel also increased in recent weeks.
U.S. low-sulfur distillate (typically highway diesel fuel) deliveries fell 5.1% in October, a sure-fire sign that the U.S. economy is in a deep recession.
In the latest American Petroleum Institute Monthly Statistical Report, “distillate fuel oil” (diesel and heating oil) deliveries are down 6.7% for January-October 2008 versus the same period in 2007.
U.S. Energy Information Administration (EIA) dramatically cut its energy price forecasts for 2009, in its just-issued Short Term Energy Outlook (STEO) report.
The report, issued Nov. 12, now sees benchmark West Texas Intermediate (WTI) crude prices averaging only $63.50/barrel in 2009, down from $112/barrel in the October 2008 STEO forecast.
In an 8K “impairment” filing with U.S. Securities & Exchange Commission this month, Navistar International reported “significant reduction in demand” from Ford for its “Powerstroke” diesel engines used in pickup trucks.
UOP announced Nov. 11 that its refinery hydrotreating process is being used to convert “second-generation, renewable feedstocks” to “green jet fuel” that will be used on a demonstration flight by Air New Zealand.
Exhaust emissions control maker Johnson Matthey (JM) is collaborating with partners at the UK’s Birmingham and Brunel universities on a new rhodium-based diesel emissions trap-catalyst that could slash criteria emissions while also boosting fuel economy.