Posted 3/26/2020 09:52 (#8140024 - in reply to #8139991) Subject: RE: Oil refining economics?
South central kansas
w1891 - 3/26/2020 09:42
What product is the driver when it comes to oil refining? Does diesel/fuel oil demand drive the refining process and gasoline is sold more as the side product or vice versa? It was usually said soy oil was the side kick to soy meal and soy oil had a tough time driving the soy market higher by itself. Does oil refining have that same setup? Has diesel demand dropped as much as gasoline and how wide of spread could we see between the two?
I would think gasoline is the driver, based on this info.
In 2018, Americans used about 143 billion gallons of motor gasoline—or about 391 million gallons per day—and 186 million gallons of aviation gasoline. Gasoline is one of the major fuels consumed in the United States and is the main product that U.S. oil refineries produce. Most of the motor gasoline sold for use in vehicles in the United States is about 10% fuel ethanol by volume.
Most gasoline is used in cars and light trucks
Source: Stock photography (copyrighted)
U.S. consumers use gasoline in
Cars, sport utility vehicles, light trucks, and motorcycles
Recreational vehicles and boats
Equipment and tools used in construction, farming, forestry, and landscaping
Electricity generators for portable and emergency power supply
In 2018, gasoline accounted for about 58% of total transportation sector energy consumption, 46% of total petroleum consumption, and 17% of total U.S. energy consumption.1
Light-duty vehicles (cars, sport utility vehicles, and small trucks) account for about 92% of all gasoline consumption in the United States.2
1 Aviation gasoline and motor gasoline including fuel ethanol.