Archive for September 2021
Time to regroup on RINs
The refining industry has little to show for its investment in the 8-year battle to get relief on RIN costs. Though Big Oil is my career home, and refiners are my prime target customers, I must admit we seem over matched in this battle. It’s a familiar feeling for a fan of the Chicago Bears,…
Read MoreThe 2021 OPIS conference and the biofuels contradiction
See the other posts in this series, Top 3 Takeaways: 2021, 2022, 2023, 2024 Any engineer attending a biofuels conference will notice an atmosphere filled with lawyers, accountants, lobbyists, and RINs traders. It is an interesting and educational but unfamiliar world for an engineer. Occasionally, the more familiar world of science, technology, and economics will…
Read MoreCVR Energy – another case study in low refining margins
Investors and analysts are confused about how to interpret low refining margins being reported this year. Much of the confusion stems from the confusing topic of RINs. I believe the low margins indicate a more fundamental weakness in the performance of many US refineries, which is inability to make enough on-spec gasoline from crude; and…
Read MoreUS retail octane value hits new high
Last week, the US average retail octane value (premium – regular gasoline price differential) hit a new high of 71.4 cents/gallon. This is the difference in pump price between premium and regular gasoline. If you fill your tank with premium today, you will pay, on average, 71.4 cents/gallon more than if you use regular. Record…
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