How Region Affects Gasoline Prices
July 20, 2009 by admin · Comments Off
Source: Shell.com
The price of gasoline at the local level can also be affected by the immediate, short-term availability of oil and gasoline.
For example, the Phoenix area is served by Western refineries via pipeline. Several years ago, an issue forced the pipeline to close for several weeks, constricting the supply of gasoline to the area.
California gasoline cannot be sold in Arizona because of different local–or “boutique”–fuel specifications.
Boutique fuels are specially formulated to meet the various requirements of local and state air quality laws. There are currently more than 200 boutique fuels in the U.S. In this case, gasoline that met Arizona requirements had to be trucked in from other parts of the U.S. at great expense, which drove up the price of gasoline in Phoenix.
Additionally, local, state and federal taxes, which account for almost one-third of the price of gasoline, have one of the biggest impacts on regional price variations. State sales taxes typically are a percentage of the pre-tax gasoline price instead of a flat per-gallon fee, which means that as gasoline prices rise, taxes also rise.
But, they are higher in other parts of the world: in Canada, for example, taxes comprise, on average, one-third of the price of gasoline at the pump. In the UK, that figure rises to about 75%.
View a larger version of the map (gif, size 29 kB) – opens in new window <http://www-static.shell.com/static/usa/downloads/responsible_energy/price_at_the_pump/gas_taxes_chart.gif>.
The Economics of Gasoline Retailing: Petroleum Distribution and Retailing Issues in the U.S.
May 5, 2009 by admin · Leave a Comment
The U. S. petroleum retailing industry is one of the
most competitive in the world. Despite this, industry
practices in gasoline retailing continue to be
controversial. In part, this controversy occurs
because integrated refining companies use a variety
of distribution methods to maximize their efficiencies
while moving gasoline from the refiner to the
consumer. These different distribution methods
can come into conflict with each other. The goal of
this study is to examine why integrated refiners use
different distribution methods, how those methods
are manifested in retailing and pricing of petroleum
products, and the important policy issues that surround
those distribution and retailing choices.
Download the full report here (pdf)
Biofuels debate
November 18, 2008 by admin · Leave a Comment
Source:Times Online 29 October 2008
…environmental challenges. Shell say biofuels cannot be left out of the mix and have…Rob Routs who is in charge of Shell’s expansion of biofuels, answers your questions…the highest of any of the oil majors. Biofuels from straw. Or woodchips. Or algae…..
By 2050 the world will need twice as much energy while emitting half of today’s greenhouse gases. As the global population heads for 9 billion, supplies of conventional oil and gas will not keep up. Solar and wind will struggle to fill the gap and nuclear will be needed, but poses its own environmental challenges. Shell say biofuels cannot be left out of the mix and have the potential to be an affordable, genuinely low CO2 fuel in the near term.
Rob Routs, in charge of Shell’s expansion of biofuels, answers your questions below on the most controversial issue being debated by the energy giants.
Read the full article here.
Oil Industry Mergers, Market Power and Fuel Prices
November 7, 2008 by admin · Leave a Comment
This report and synopsis was developed by API.
The Facts About Oil Industry Mergers, Market Power and Fuel Prices: An API Primer
The oil and natural gas industry recognizes the concerns across the country over the higher energy costs American consumers and businesses have been facing this year. It is also aware of the assertion that the consolidation that has occurred in the industry over the last decade has led to higher energy prices. This primer attempts to address those concerns and offers the proper context in which to view both energy prices and company mergers.
It is important to understand how the energy world has changed. Forty years ago, the world oil reserves were largely the domain of the investor-owned, international oil companies (IOC), based principally in the United States. Most people today assume international oil companies are little changes from decades ago, still siting astride the bulk of these world oil reserves. That is no longer the case. Today, world oil reserves are 80 percent owned by the national oil companies of foreign governments, many formed during the past 30 years. Only six percent of worldwide oil reserves are now held by investor-owned oil companies.
Download the primer (pdf).
Understanding the Oil and Gasoline Industry
November 7, 2008 by admin · Leave a Comment
This primer and synopsis was developed by API.
The Truth About Oil and Gasoline: An API Primer
America is in a global struggle for energy security and many of us lack a full understanding of the oil and natural gas industry. API has assembled a primer to encourage a constructive public policy debate on meeting the growing energy needs of consumers and industry.
Sections include discussions of global energy demand, price increases, what consumers are paying at the pump, earnings, refinery expansions, the environment and energy security.
Download the primer (pdf).
Date: October 31, 2008
Please note that this report is updated on a regular basis. To obtain the latest version please visit API.
