Ever since US crude production began to increase in 2009 after 40 years of decline from its peak in 1970, refineries have been processing higher crude volumes.
This summer (2014) crude processing volumes have been higher than at any time since the Energy Information Administration (EIA) began keeping records in 1982.
Abundant supplies of reasonably priced crude in all regions as well as low refinery fuel costs are giving US refiners good reason to crank up their output. So much so that in the Midwest refinery output reached over 100 percent of capacity early in July. Today we describe the refining bonanza and how things might change in the not too distant future.
During the week ending July 11, 2014, US refineries processed 16.6 MMb/d of crude - the highest level ever recorded by EIA.
This increase in refinery processing comes at a time when domestic demand for refined products produced by refineries has actually been declining due to two main factors – (1) renewable fuel standards replacing gasoline with ethanol and (2) greater auto fuel economy.So, where does that leave us? Where are "we" headed? For the rest of the story, go to the linked article. Without question, RBN Energy provides the best education on the oil and gas industry, day in and day out, without requiring a paid subscription, a password. There are no ads at the site. It is quite remarkable.
I wish such a site existed 40 years ago. Oh, that's right. Algore had not yet invented the internet. My bad.
Humor for the Day
See if you can find this story on your own through googling. It's such a huge story, I was unable to find it again through googling. I had to go back to where I thought I saw it earlier this morning.
Blackberry: BBM now available for Windows phone users: Co announced a collaboration with Microsoft (MSFT) to bring BBM to Windows Phone 8 and higher.Savvy investors probably saw this coming. Back on Jun3e, 29, 2012 (yes, two years ago; some things move slowly in Silicon Valley), Business Insider was reporting:
RIM's death throes continue...
Reuters reports hearing from sources that RIM's board is currently weighing several extreme options including switching to Microsoft's mobile operating system (the Nokia move, which has failed), or selling off its network business, a key part of the company.
RIM announced a greater quarterly operating loss than expected on Thursday, and revealed that it is once again delaying the release of the Blackberry 10 phone, this time until 2013.
Now, the company's board is reportedly considering giving up on its own operating system and adopting Microsoft's instead. In fact, Reuters reports that Microsoft's CEO Steve Ballmer recently approached RIM about this idea. For the time being though, RIM is still hoping to develop and release the Blackberry 10 operating system.I can't make this stuff up.