Happy Holidays and welcome to the December Newsletter! In this edition we introduce you to our fantastic project coordinator Kim Barrett. Leigh Noda offers some insight on the rise in LCFS credit prices. Dave Hackett brings us a great story about industrial policy and the cooperation between government and business. The last Bubble Map of the year shows some interesting things happening on the West Coast. Finally, check out web-based education course, Transportation Fuels Logistic 101. We'll be offering the seminar in 2014.
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After a Steep Climb, LCFS Credit Prices Drop in December
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by Leigh Noda
2013 has seen the RINs prices soar through the first half of 2013 and come back down the past few months. The price of California's Low Carbon Fuel Standard (LCFS) Credits tracked the RINs price upward, but has continued to rise until recently. The price continued to rise even after the California Air Resources Board (CARB) announced that the 2013 standard would be applied to 2014. The original 2014 standard called for in the regulation was for a 0.5% reduction, which would be added to the 1% reduction through 2013. This was in response to the State of California Court of Appeals, Fifth Appellate District opinion that certain aspects of the procedures by which the LCFS was originally adopted needed to be corrected, but allowed that LCFS would remain in effect and that CARB can continue to implement and enforce the 2013 regulatory standards while making these corrections. After reaching a high of $85 per metric ton (MT) in late October and November, the price of LCFS credits has dropped back to about $67 per MT. 
Read more...
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An Industrial Policy Success Story
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by David HackettFor a long time I've been concerned about the barriers that have been created to stifle industrial development in the United States. Here in California it is virtually impossible to create new industrial facilities. For example, we have a client who has been working for years to develop a new crude-by-rail unloading facility in an existing industrial zone. This unloader will allow the flow of low cost North American crude oil to flow to the West Coast, reducing imports from Russia, Venezuela, and Iraq and lowering supply costs. This client's project has been blocked at every turn by a brick wall of government regulations. However, recently I heard a great story of policy working to develop industry and saving jobs. I listened to Phil Rinaldi, CEO of Philadelphia Energy Solutions (PES), talk about the remarkable achievements that government, labor and his company have crafted in Pennsylvania. Read more...
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The Last Bubble Map of 2013 - ANS Skyrockets
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 The Bakken discount has narrowed since we last checked in. On December 9th, Bakken at Clearbrook, MN was posted at $10 under WTI. But the WCS discount has widened to $26. Maya remains at $9 under WTI. The Brent, Louisiana Light Sweet and Alaska North Slope differentials have all widened as well. Brent was priced $12 over WTI, LLS $5 over and ANS has gained a whopping $8 since October to $10 over WTI. San Joaquin Valley Heavy gained ground as well to $1 over WTI. Mexican Maya remains at $9 under WTI. Read more... |
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Stillwater Associates is a transportation energy consulting company. We help our clients understand how fuels get from the source to the service station. If your company is in need of expert advice, please let us know.
Sincerely,
David J. Hackett, President
Stillwater Associates LLC |
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We use Facebook to share interesting transportation energy articles, studies, and events. If you are a regular Facebook user, check out Stillwater's page.
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Meet Kim Barrett, Project Coordinator 
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Kim Barrett is our indispensable Project Coordinator. As Stillwater has grown, Kim has developed our Project Management and Coordination System. The PM&C system includes schedule development, progress monitoring, efficiency and budgets. This system is so efficient, we now offer this system to clients on a project basis.
When Kim isn't working to keep us on budget and on task, she's spending time with her husband and two boys and hiking near her home in Northern Colorado.
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Coming Soon! Transportation Fuels Logistics 101
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Do you know how crude oil is delivered to the refinery? How about what it takes to refine a gallon of gasoline? Or how gasoline gets from the refinery into your tank? Coming in 2014, Stillwater is offering Transportation Fuels Logistics 101. This web-based seminar is designed to educate folks outside the industry on how the Transportation Fuels supply chain functions. An excellent opportunity for policy makers, attorneys, and renewable fuels start-ups to understand the basics! |
Please visit the TFL 101 page to learn more. |
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