June 22, 2009
Volume: 13
Issue: 13
Top Stories
Global Diesel Demand Outrunning Gasoline: BP Review
U.S. Diesel Demand Seen Falling 5.5% in 2009, Rising 2.1% in 2010
New Technology Could Slash CO2 Footprint, Cost of Oil-Sands Crude
1.25 Trillion Barrels of UCG-CTL Potential: Central Petroleum
Urea 60% More Expensive than U.S. Diesel Fuel: Big Truckstop Chain
Navistar EPA-2010 Buses: $6K Price Premium
Beijing Foton, Cummins Launch Production of Light-Duty Diesel Engines
Bosch Chief: Diesels Needed for CO2 Regulatory Challenge
Around the world of Diesel
Oil Refineries Ltd. (ORL) Confirms ULSD Hydrocracker Project – at Much Lower Cost:
Dodge Shelves Ram 1500 Diesel Pickup Plans:
Volvo Sees No Recovery Yet in Diesel Truck Business:
Peugeot Diesel Beats Audi Diesel in 2009 LeMans Car Race:
Reliance Shutting Down Old Refinery Units, New Units Continue:
Indonesia’s Pertamina to Import Diesel Fuel this Month:
GM Trying to Save Asia Diesel Car Engine Plan:
Chile’s Enap Cutting Kerosene Sulfur to 100-ppm:
GM Kills Medium-Duty Truck Business:
Hyundai Mulls Diesel Engine Plant in India:
More News
Diesel Emissions Even Lower than U.S. EPA Limits: ACES Study
50% ‘Bio-SPK’ Kero-Jet Wins Boeing, Pratt & Whitney, GE, Airline Endorsements
ULSD Output Dips, Stocks Steady, Prices Up: US EIA Survey
Mysterious ‘V-Vehicle’ Gets Millions in Tax Subsidies
Market Report: Oil Perking Up a Bit, Possibly on Speculation
$50/Ton CO2 Tax Would Make CBTL Competitive: NRC Study
S&P Rating Services See “Highly Exposed” Refining Sector
Mahindra Grabbing Ex-Chrysler, Ford Dealers for Diesel Vehicles
Navistar Sees Worst Market Since 1962
Annual Northrup Grumman Diesel Survey Seeks Volunteers
CSX, Power Company Buy Low-Emissions ‘GenSet’ Diesel Locomotives
Daimler: ‘Renewable Diesel’ Better than Biodiesel, Cuts Emissions
Petrobrás Cuts Diesel Prices 15%
Regulation
IEA Expert: Non-OECD Will Dominate Oil Demand; Ethanol Won’t Dominate Biofuels Market
U.S. Senate Panel OK’s Bill Mandating ‘Oil Hoarding’ Reports
U.S. Truckers: CO2 Cap-and-Trade Will Hike Diesel Prices
Technology
Hydrocracking/Hydrotreating: Bigger Yields than Coking for Mexican Maya Crude
U.S. DOE: $240 Million for High-Efficiency Trucks, Car Demos
Coker Gas Oil Can Boost Distillate, but Hydrotreating an Issue
Key Prices
Distillate Watch

Top Stories

Global Diesel Demand Outrunning Gasoline: BP Review

BP’s annual Statistical Review of World Energy 2009 shows that middle distillate consumption trends continue to outrun gasoline despite the global recession that’s temporarily dampening the demand for diesel.

Full Story >>

U.S. Diesel Demand Seen Falling 5.5% in 2009, Rising 2.1% in 2010

U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook (STEO) report shows that the global economic decline will cause U.S. distillate fuel (diesel and heating oil) to drop by about 5.5% this year, then rebound with 2.1% growth next year.

Full Story >>

New Technology Could Slash CO2 Footprint, Cost of Oil-Sands Crude

North American refiners know they’ll face huge pressures to cut CO2 emissions from crude refining in coming years, thanks to pending legislation in the U.S. Congress.

Full Story >>

1.25 Trillion Barrels of UCG-CTL Potential: Central Petroleum

Australia’s Central Petroleum announced June 9 that about 1.25 trillion barrels of coal-to-liquids (CTL) fuel could be recovered via underground coal gasification (UCG) and subsequent Fischer-Tropsch synthesis from its Pedirka Basin tenements.

Full Story >>

Urea 60% More Expensive than U.S. Diesel Fuel: Big Truckstop Chain

TravelCenters of America announced June 12 that all 234 of its TravelCenters of America (TA) and Petro Stopping Centers (Petro) branded locations in North America are now stocked with 2.5 gallon-jugs of urea (called “diesel exhaust fluid,” DEF).

Full Story >>

Navistar EPA-2010 Buses: $6K Price Premium

Navistar announced June 16 that its “advanced EGR” (exhaust gas recirculation) system for compliance with upcoming U.S. EPA 2010 limits on heavy-duty diesel nitrogen oxides (NOx) will mean a $6,000 price premium on its “IC Bus” line for 2010.

Full Story >>

Beijing Foton, Cummins Launch Production of Light-Duty Diesel Engines

The Beijing Foton Cummins 50-50 joint venture announced June 10 that it has begun production of the Cummins “ISF” light-duty diesel engine in China.

Full Story >>

Bosch Chief: Diesels Needed for CO2 Regulatory Challenge

In a June 15 speech to a “clean transportation town hall” in Detroit -- the bleeding heart of the U.S. auto industry – Bosch CEO Peter Marks said that diesel technology is required to help meet upcoming U.S. vehicle CO2 limits and corporate average fuel economy (CAFÉ) standards.

Full Story >>

Regulation

IEA Expert: Non-OECD Will Dominate Oil Demand; Ethanol Won’t Dominate Biofuels Market

Between 2007 and 2030, virtually all the growth in global oil demand is projected to come from developing countries, or nations that are not members of the Organization for Economic Cooperation and Development (OECD).

Full Story >>

U.S. Senate Panel OK’s Bill Mandating ‘Oil Hoarding’ Reports

The U.S. Senate Energy & Natural Resources Committee on June 9 approved an oil-and-gas bill including a provision forcing large oil traders to report “hoarding” of oil and fuels offshore, which they supposedly employ to manipulate futures prices.

Full Story >>

U.S. Truckers: CO2 Cap-and-Trade Will Hike Diesel Prices

American Trucking Associations (ATA) on June 9 testified to U.S. House subcommittee on energy and environment that proposed CO2 cap-and-trade legislation will mean higher costs for industry and consumers.

Full Story >>

Around the world of Diesel

Oil Refineries Ltd. (ORL) Confirms ULSD Hydrocracker Project – at Much Lower Cost:

Full Story >>

Dodge Shelves Ram 1500 Diesel Pickup Plans:

Full Story >>

Volvo Sees No Recovery Yet in Diesel Truck Business:

Full Story >>

Peugeot Diesel Beats Audi Diesel in 2009 LeMans Car Race:

Full Story >>

Reliance Shutting Down Old Refinery Units, New Units Continue:

Full Story >>

Indonesia’s Pertamina to Import Diesel Fuel this Month:

Full Story >>

GM Trying to Save Asia Diesel Car Engine Plan:

Full Story >>

Chile’s Enap Cutting Kerosene Sulfur to 100-ppm:

Full Story >>

GM Kills Medium-Duty Truck Business:

Full Story >>

Hyundai Mulls Diesel Engine Plant in India:

Full Story >>

More News

Diesel Emissions Even Lower than U.S. EPA Limits: ACES Study

The long-awaited Advanced Collaborative Emissions Study (ACES) from the U.S. auto-oil Coordinating Research Council (CRC) found that diesel emissions from heavy-duty trucks built since 2007 are far lower than even what U.S. EPA requires.

Full Story >>

50% ‘Bio-SPK’ Kero-Jet Wins Boeing, Pratt & Whitney, GE, Airline Endorsements

Hydrotreating vegetable oils into “bio-derived synthetic paraffinic kerosene” (Bio-SPK) yields a fuel that is – except for aromatic content – chemically almost identical to petroleum-based kero-jet fuel.

Full Story >>

ULSD Output Dips, Stocks Steady, Prices Up: US EIA Survey

U.S. Energy Information Administration’s (EIA) latest weekly surveys of refiner and importer supplies of ultra-low sulfur diesel (<15-ppm sulfur ULSD) show that refiner output has slipped, helping ULSD stocks stabilize.

Full Story >>

Mysterious ‘V-Vehicle’ Gets Millions in Tax Subsidies

Louisiana Gov. Bobby Jindal on June 17 announced that his state would give some $67 million in tax incentives to a mysterious outfit named “V-Vehicle” for producing a supposedly environment-friendly vehicle, at an abandoned factory.

Full Story >>

Market Report: Oil Perking Up a Bit, Possibly on Speculation

International Energy Agency’s latest monthly Oil Market Report has IEA predicting a slight reversal of crude-oil demand declines for 2009, following stronger-than-expected first-quarter 2009 OECD economic data.

Full Story >>

$50/Ton CO2 Tax Would Make CBTL Competitive: NRC Study

The U.S. National Research Council (NRC) found in a new study that combined coal/biomass to liquids (CBTL) plants would be cost-competitive with conventional oil refineries – especially if a $50/ton CO2 tax is imposed in the U.S.

Full Story >>

S&P Rating Services See “Highly Exposed” Refining Sector

Two reports from Standard & Poor’s Rating Services assert that the global refining sector should expect to remain “highly exposed” to a prolonged downturn due to a surplus resulting from decreased product demand and increasing refining capacity worldwide.

“We expect the current steep fall in middle distillate crack spreads to impact European and Asian refiners most in 2009. This is because they tend to have a high share of middle distillates, about 40%-60%, compared to approximately 30% for a typical U.S. refinery,” said S&P’s credit analyst Karl Nietvelt.

Full Story >>

Mahindra Grabbing Ex-Chrysler, Ford Dealers for Diesel Vehicles

Dealers who have lost their franchises in the “downsizing” U.S. car business are now signing up with alternative automakers, including Mahindra, which is launching U.S. diesel-powered pickup and SUV vehicle sales in coming months.

Full Story >>

Navistar Sees Worst Market Since 1962

U.S. based diesel vehicle/engine maker Navistar International reported $12 million second-quarter 2009 earnings despite what it termed as the worst market conditions since 1962.

Full Story >>

Annual Northrup Grumman Diesel Survey Seeks Volunteers

Northrup Grumman is seeking refiner volunteers for its annual survey of U.S. diesel and heating oil.

Full Story >>

CSX, Power Company Buy Low-Emissions ‘GenSet’ Diesel Locomotives

U.S. railroad CSX and New Jersey electric producer PSEG Power announced June 9 that they’re jointly buying three “GenSet” low-emissions diesel locomotives manufactured by National Railway Equipment Company.

Full Story >>

Daimler: ‘Renewable Diesel’ Better than Biodiesel, Cuts Emissions

Diesel engine and truck maker Daimler announced June 9 that first-year results from a three-year fleet test of Neste’s “NExBTL” renewable diesel fuel in Germany show significant emissions reductions and better performance than conventional fatty acid methyl ester (FAME) biodiesel.

Full Story >>

Petrobrás Cuts Diesel Prices 15%

Despite the recent global trend of increases in crude oil prices, Petrobras announced that as of June 9 it had cut diesel wholesale prices by 15%, while gasoline prices were trimmed 4.5%.

Full Story >>

Technology

Hydrocracking/Hydrotreating: Bigger Yields than Coking for Mexican Maya Crude

During the past five years, many existing refineries have undergone major reconfigurations to process a greater proportion of heavy crudes. Delayed cokers, expanded vacuum units and visbreakers have been employed.

Full Story >>

U.S. DOE: $240 Million for High-Efficiency Trucks, Car Demos

U.S. Dept. of Energy (DOE) on June 11 announced it’s offering up to $240 million for development of high efficiency commercial and passenger vehicles.

Full Story >>

Coker Gas Oil Can Boost Distillate, but Hydrotreating an Issue

Given long-term global trends of greater demand for middle distillate and declining demand for gasoline, one emerging refiner strategy is to produce more distillate from coker gas oils.

Full Story >>

Key Prices

Distillate Watch

Full Story >>