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Stillwater Associates LLC Newsletter

June 2015
In the June edition of the Newsletter Dave Hackett explains the flow of petroleum products in and out of the U.S. by region. We offer the latest update to the Bubble Map Blog and discuss how the Refugio Oil Spill is impacting the local California supply chain. Finally, Stillwater is growing - we're so happy to welcome Rob Jaques and Bob Middlemore to the team! 

Petroleum Product Flows by Region
by David Hackett

Clients frequently ask us to explain the flows of petroleum from one region to another. Our Bubble Map is often used to explain the flows of crude oil, for example.

 

The chart below illustrates the flow of petroleum products in and out of the U.S. by Petroleum for Administration of Defense District (PADD) for 2014. The red gasoline (G) arrows represent flows for gasoline, motor gasoline blending components and fuel ethanol. The blue diesel (D) arrows represent flows for biomass-based diesel (biodiesel), renewable diesel, distillate fuel oil (diesel fuel and heating oil) and jet fuel. The data and PADD map are provided by the EIA.

 

 
Bubble Map Update: How the Oil Spill Impacts the California Supply Chain



 

The June Bubble Map shows crude oil prices continuing the upward trend from last month. WTI is up $4 since our last post at $63 per barrel on June 25th. The WTI/Brent differential has tightened to $3 over WTI. The Bakken discount has widened to $14 under WTI. The Western Canadian Select discount has also increased to $10 under WTI. On the Gulf Coast, crude oil from the shale formations in Texas like Eagle Ford were priced at parity with WTI and Louisiana Light Sweet was $2 under WTI. On the West Coast, the Alaskan North Slope price is at parity with WTI and the San Joaquin Valley Heavy discount has increased to $4 under WTI.

 

The effects of the May 19th Refugio oil spill in Santa Barbara will continue to reverberate for years to come. While many beaches in the area have reopened since the spill, there is no timeline for cleaning the last eight miles of shore near Refugio State Beach. 
 
Meet our New Associates!

We're pleased welcome two new associates this month! 

Rob Jaques has more than 20 years of experience that began in gas plants on the Alaska Highway and includes oilfields in South America, oil refineries in India and the Texas Gulf Coast, and Canada's heavy oil industry. He has led improvement projects in asset management and safety, as well as procurement and supply chain. His consulting career has also included safety improvements in Transit and Healthcare.

 Bob Middlemore's 30-year career has included positions in petroleum refining, combined cycle power plants, and the development and management of low carbon intensity energy projects. His experiences include major project and asset management, strategic planning and business development, fuel blending logistics, and EHS management. Bob has been at the forefront of many business improvement initiatives to address new regulations, fuel requirements, and business improvement efforts.
Stillwater Associates is a transportation energy consulting firm. 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