The U.S Oil & Gas Refining & Marketing Industry According to the GAO report, the U.S. petroleum refining industry experienced a period of high product prices and industry profits from the early 2000s through to 2007. ( United States Government Accountability Office , 2014). Since the recession of 2007 to 2009,the industry has been in transition ( United States Government Accountability Office , 2014). The three major changes that have recently affected the domestic petroleum refining industry include: Increased production: According to GAO, the U.S. and Canadian crude oil production have increased, resulting in lower costs of crude oil for some refiners.( United States Government Accountability Office , 2014). It observed that after significant decline in decades, monthly U.S. crude oil production increased over 55 percent compared with average production in 2008 ( United States Government Accountability Office , 2014). Declining consumption: The domestic consumption of petroleum products declined by 11 percent from 2005 through to 2012, resulting in a smaller domestic market for refiners ( United States Government Accountability Office , 2014). Key regulations: According to the GAO, the two major regulations namely, the Environmental Protection Agency’s (EPA) and Department of Transportation’s (DOT) coordinated fuel economy and the greenhouse gas (GHG) vehicle emission standards, as well as EPA’s Renewable Fuel Standards (RFS) have contributed to declining petroleum-based fuel consumption. For some refiners, adherence to the RFS increased costs in the first half of 2013, although costs have significantly declined to some degree from their peak ( United States Government Accountability Office , 2014). The U.S Refining Industry Out... ... middle of paper ... ...9f6%40sessionmgr115&vid=4&hid=124 Tesoro Corporation. (2013, December 31). TESORO CORPORATION ANNUAL REPORT ON FORM 10-K. Retrieved May 1, 2014, from UNITED STATES SECURITIES AND EXCHANGE COMMISSION: http://phx.corporate-ir.net/phoenix.zhtml?c=79122&p=quarterlyEarnings U.S. Energy Information Administration. (2012, August 14). Gasoline Explained: Regional Gasoline Price Differences. Retrieved May 9, 2014, from Why Are Gasoline Prices Higher in Some Regions Than in Others?: http://www.eia.gov/energyexplained/index.cfm?page=gasoline_regional Valero Energy Corporation. (2013). Driving Value: 2013 SUMMARY ANNUAL REPORT. Retrieved May 9, 2014, from http://media.valero.com/flash/annualReport/pdf/report.pdf Western Refining Inc. (2013). Transformation: 2013 Annual Report. Retrieved May 1, 2014, from http://media.corporate-ir.net/media_files/IROL/19/194293/2013AR/index.html
Form 10-K Chipotle Mexican Grill, Inc. (2011, February 17). Retrieved March 15, 2011, from U.S. Securities and Exchange Commission: http://www.sec.gov/archives/edgar/data/1058090/000119312511039010/d10k.htm#tx129308_27
Crude oil stocks are at long-term lows, with OECD inventories approaching the 2,300 mmbbl range and US inventories well below 640 mmbbl. US motor gasoline as well as distillates inventories are at record lows, just below 200 and 100 mmbl, respectively. Domestic demand, however, continues to grow, with robust mogas demand at around 8.5 million barrels per day trending upwards. A high demand for distillates at 4.2 millon barrels per day is surprising considering the warmer-than-expected winter. DOE data displays continued total inventory outperformance throughout 1999, peaking at withdrawals of 51.8 million barrels in 4Q99. Opec compliance has remained high. Low crack spreads indicate refinery discipline.
In 1908, the U.S. Geological Survey (USGS) predicted that the total future supply of U.S. oil would not exceed 23 billion barrels. In 1914, the U.S. Bureau of Mines predicted that only 5.7 billion barrels of oil remained. In 1920, the USGS proclaimed the peak in U.S. oil production was almost reached. In 1939, the Department of Interior declared that there was only 13 years of oil production remaining. In 1977, President Jimmy Carter claimed, “We are now running out of oil.” Despite these predictions, the U.S. has produced over 200 billion barrels of oil since the early 1900’s. (The Futurist, 1997)
In 2004, crude oil producers around the world expected a 1.5% growth in the world’s demand for crude oil. The actual growth rate was more than double the projections at 3.3%. This growth was due to rapidly industrializing of foreign countries such as, China and India. Therefore the lack of crude oil affected the supply of gasoline to consumers at the pump.
The Clorox Company. (2014, February 4). The Clorox Company Reports Slight Sales Growth on Top of Strong Year-Ago Results; Updates Fiscal Year 2014 Outlook. Retrieved March 21, 2014, from http://investors.thecloroxcompany.com/releasedetail.cfm?ReleaseID=822888
foreign oil is damaging the energy industry in America as well as decreasing the amount
Annual Report 2012 Costco Wholesale: Year Ended September 2, 2012 [PDF document]. 1-7. Retrieved from Costco Wholesale Financial Reports:
“Table 4-23: Average Fuel Efficiency of U.S. Passenger Cars and Light Trucks”, Research and Innovative Technology Administration, N.p., 6 April 2011, n.d. .
2004 will be remembered as a pivotal year in the automobile industry. It was a year in which high gasoline prices started a sea change among U.S. consumers that will finally create significant demand for fuel-efficient vehicles. Gasoline prices of $2.00+ per gallon started taking a huge bite out of family budgets, and many middle-class consumers who own fuel guzzling SUVs and pickup trucks began to wish they had vehicles that were much less expensive to operate.
In 1970 oil reserves became more scarce, leading to a decrease in production, while consumption continued to grow rapidly (Wright, R. T., & Boorse, D. F. 2011). In order to fill the gap between rising demand and falling supply of oil, the United States became more and more dependent on imported oil, primarily from Arab countries in the Middle East. (Wright, R. T., & Boorse, D. F. 2011). As the U.S and many other countries became highly industrialized nations, they became even more dependent on oil imports. With demand being higher than the actual amount of supply, prices kept rising reaching a peak of $140 a barrel in 2008. (Wright, R. T., & Boorse, D. F. 2011).
(2014). The. Tesla Motors, Inc. (TSLA) – Financials. Retrieved from: http://financials.morningstar.com/income-statement/is.html?t=TSLA®ion=usa&culture=en-US&ownerCountry=USA Tesla Motors Inc. - Form 10-K Annual Report, 2011. (2011). The 'Standard' of the 'Standard'.
Vang, B. (2014b, February 13). Signs the Propane Industry Crisis Easing. In WBAY. Retrieved February 17, 2014, from http://www.wbay.com/story/24719992/2014/02/13/signs-the-propane-industry-crisis-easing
Throughout the past twenty years there have been several drastic changes in oil prices. These dramatic shifts are helpful to look at because of their impact upon the economy and the oil industry. During this time period there are three major shifts in oil price that can be linked to specific events in world history (Miller, 1998). First, the Arab oil embargo of 1973 caused a widespread oil crisis and brought crude oil from three dollars a barrel to a staggering twelve dollars a barrel. Second, the 1979 Iranian revolution caused another crisis that brought crude oil prices to an all time high of thirty-six dollars per barrel. Finally, the third major shift occurred in 1991 due to the Persian Gulf War (Miller, 1998).
The drastically increasing prices of fossil fuels and gasoline were making it harder for a middle income people to afford conventional vehicles in the near future. The gasoline is a natural resource which is reducing the supply of our reserves every second. In order to keep the fuel prices in control...
Automobiles and its related manufacturing contribute to the degradation of the environment causing great concerns from consumers, governments, policy makers and environmentalists, regarding the economy and global warming. This resulted in market changes, due to new environmental laws, legislations, standards, product requirements and consumer wants. The gasoline engine produces emissions that are deadly for the environment, hence the big race by the automobile producers to develop an efficient alternative fuel/energy for powering its vehicles. Deloite (2014) ‘In 2012, new Corporate Average Fuel Economy (CAFE) standards were released in the U.S. that requires automakers to raise the average fuel efficiency of new cars and trucks to 54.5 MPG by 2025.’ (“Global Automotive Consumer Study”, 2014, p.4) The industry is engaged in research and development to develop more efficient internal combustion engines, electric vehicles (EVs), plug-in hybrids, and vehicles powered by natural gas. The government offers incentives in the form of rebates for the purchase and sale of energy efficient