Author Archives for Kendra Seymour

Downstream Oil & Gas M&A Part 1: Pssst… Want to Buy a Refinery?

November 18, 2020 4:26 pm Published by Comments Off on Downstream Oil & Gas M&A Part 1: Pssst… Want to Buy a Refinery?

November 15, 2020 By Vaughn Hulleman & Jim Mladenik The petroleum industry is known for its cyclic nature, and, traditionally, value-buyers find opportunity to acquire assets during periods of stress. The current reduction in oil products’ demand brought on by the pandemic, along with other factors, have severely distressed downstream oil and gas assets. Several...
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Amid year full of global uncertainty Stillwater launches West Coast Watch and proprietary Refining Margin Index

November 18, 2020 3:02 pm Published by Comments Off on Amid year full of global uncertainty Stillwater launches West Coast Watch and proprietary Refining Margin Index

On November 17th, Stillwater Associates launched the West Coast Watch. This market information portal provides refined petroleum product and renewable fuels supply and demand data, industry news, and analysis to help industry leaders understand the market, spot opportunities, and act confidently.   The West Coast transportation fuels market is often referred to as an island,...
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Introducing the West Coast Watch Market Analysis

November 18, 2020 1:18 pm Published by Comments Off on Introducing the West Coast Watch Market Analysis

November 18, 2020 The West Coast transportation fuels market is rapidly changing with significant impacts just this year due to the COVID-19 pandemic and the push to de-carbonize the transport sector. Based on these factors and with an eye toward helping stakeholders navigate this challenging market, Stillwater is introducing our West Coast Watch market information...
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California’s Clean Truck Regulation: How will the ACT Impact Medium- and Heavy-Duty Vehicle Fuel Demand and Emissions?

November 18, 2020 1:11 pm Published by Comments Off on California’s Clean Truck Regulation: How will the ACT Impact Medium- and Heavy-Duty Vehicle Fuel Demand and Emissions?

November 18, 2020 Through our new West Coast Watch platform, Stillwater is pleased to offer this forward-looking view on the possible changes to medium- and heavy-duty vehicle fuel demand and emissions under California’s Advanced Clean Truck Regulation. This Stillwater Special Report provides an overview of California’s Advanced Clean Truck Rule (ACT) and its impacts on...
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Flash Report: 2Q2020 LCFS Data Show Slight Draw on the Credit Bank

November 2, 2020 6:41 am Published by Comments Off on Flash Report: 2Q2020 LCFS Data Show Slight Draw on the Credit Bank

November 2, 2020 On Friday afternoon, October 30th, CARB posted the second quarter 2020 data for the LCFS program. The 2Q2020 report gives us insight into the credit bank situation for the three months following stay-at-home orders due to COVID-19. In today’s flash report, we offer a quick look at the second quarter data. Our...
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West Coast Watch: Ugly Refiner Margins Linger as Pandemic Drags On

October 22, 2020 1:44 pm Published by Comments Off on West Coast Watch: Ugly Refiner Margins Linger as Pandemic Drags On

October 22, 2020 By Kendra Seymour and Leigh Noda The West Coast transportation fuels market is often referred to as an island, and refiners in California and Washington face unique market pressures even in the best of times. West Coast refiners are isolated geographically, must produce gasoline and diesel to unique specifications, and are subject...
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West Coast LCFS Credits Generated by Fuels Produced Out-of-State

October 20, 2020 12:29 pm Published by Comments Off on West Coast LCFS Credits Generated by Fuels Produced Out-of-State

October 20, 2020 by Jim Mladenik  Summary California’s Low Carbon Fuel Standard (LCFS) and Oregon’s Clean Fuel Program (CFP) are designed to provide significant financial incentives for the production and blending of low-carbon fuels into the states’ transportation fuels systems. These incentives can be large enough to spur development of numerous projects to reduce the...
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Turning a Blind Eye to Oil Spills in Venezuela

September 28, 2020 12:33 pm Published by Comments Off on Turning a Blind Eye to Oil Spills in Venezuela

September 28, 2020 By Barry Schaps The preface to Former National Security Advisor Lt. General H.R. McMaster’s new book Battlegrounds, published last week, begins with “This is not the book that most people wanted me to write.” Similarly, this article is not one our audience expects to find in Stillwater’s Newsletter, but its importance to...
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Part 2: What’s up with the new 100% ZEV mandate in California? An Internal Stillwater Conversation

September 24, 2020 12:54 pm Published by Comments Off on Part 2: What’s up with the new 100% ZEV mandate in California? An Internal Stillwater Conversation

September 24, 2020 By Kendra Seymour Yesterday, shortly after California’s governor Gavin Newsom announced his Executive Order mandating 100% ZEV car sales by 2035, I caught up with a few of my colleagues via Slack to get a better understanding of the issues around electrification. Thinking that this dialogue might be of interest to our readers,...
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What’s up with the new 100% ZEV mandate in California? An internal Stillwater conversation (Part 1)

September 23, 2020 8:29 pm Published by Comments Off on What’s up with the new 100% ZEV mandate in California? An internal Stillwater conversation (Part 1)

September 23, 2020 By Kendra Seymour As editor of Stillwater’s LCFS Newsletter and a contributor on many of Stillwater’s LCFS-related client projects, I spend most of my time researching and reporting around renewables markets and the programs which incentivize the development, deployment, and adoption of alternative fuels. Today, shortly after California’s governor Gavin Newsom announced his Executive...
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West Coast Watch: The Pandemic and Wildfires Pummel Refining Margins

September 22, 2020 7:38 am Published by Comments Off on West Coast Watch: The Pandemic and Wildfires Pummel Refining Margins

September 22, 2020 By Megan Boutwell The West Coast transportation fuels market is often referred to as an island, and refiners in California and Washington face unique market pressures even in the best of times. West Coast refiners are isolated geographically, must produce gasoline and diesel to unique specifications, and are subject to greenhouse gas...
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Stillwater Stars in Litigation Support

September 15, 2020 2:46 pm Published by Comments Off on Stillwater Stars in Litigation Support

September 15, 2020 By Barry Schaps You are probably familiar with expert witnesses in legal cases from their appearances on TV shows and in movies. But did you know that Stillwater Associates provides expert testimony and litigation support for cases involving the transportation fuels industry? In fact, litigation support is one of our core areas...
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Introducing the West Coast Watch Refining Margin Index

August 27, 2020 7:23 am Published by Comments Off on Introducing the West Coast Watch Refining Margin Index

August 27, 2020 By Megan Boutwell The West Coast transportation fuels market is often referred to as an island, and refiners in California and Washington face unique market pressures even in the best of times. Geographic isolation, unique gasoline and diesel specifications, and greenhouse gas (GHG) reduction regulations including the federal Renewable Fuel Standard (RFS),...
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Buying in the Dip

August 26, 2020 6:54 am Published by Comments Off on Buying in the Dip

August 26, 2020 By Kendra Seymour By now, it’s no secret that the fallout from the COVID-19 pandemic and the ensuing quarantine culture has had serious effects on transportation fuels markets as people are traveling by car and by plane much less frequently. These effects are likely to linger for some time, but eventually life...
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As California Burns, Diesel Trucks Clean the Air

August 25, 2020 9:41 am Published by Comments Off on As California Burns, Diesel Trucks Clean the Air

August 25, 2020 By Gary Yowell For the past week, dozens of lightning-induced wildfires have raged in California, resulting in unhealthy, smoke-laden air. The air quality is so poor that it has exceeded particulate matter (PM10 and PM2.5) ambient air quality standards. PM10 is smoke that can be trapped on a 10-micron filter, PM2.5 is...
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Flash Report: 1Q2020 LCFS Data Show Nearly 460,000 MT Draw on the Credit Bank

July 31, 2020 5:00 pm Published by Comments Off on Flash Report: 1Q2020 LCFS Data Show Nearly 460,000 MT Draw on the Credit Bank

July 31, 2020 Today, CARB posted the first quarter 2020 data for the LCFS program. The 1Q2020 report gives us insight into the credit bank situation as stay-at-home orders went into place due to COVID-19. In today’s flash report, we offer a quick look at the first-quarter data. Our comprehensive analysis will be published in...
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How Does California’s New Advanced Clean Trucks Rule Affect Diesel Demand?

July 13, 2020 11:05 am Published by Comments Off on How Does California’s New Advanced Clean Trucks Rule Affect Diesel Demand?

July 13, 2020 By Gary Yowell On June 25, 2020, the California Air Resources Board (CARB) adopted the Advanced Clean Trucks (ACT) rule which seeks to accelerate the adoption of zero-emission vehicles (ZEVs) in the medium-and heavy-duty truck sector and reduce harmful emissions generated from on-road mobile sources. Medium- and heavy-duty vehicles include the largest...
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The Search for Zero

July 6, 2020 10:48 am Published by Comments Off on The Search for Zero

July 6, 2020 By Adam Schubert A number of Stillwater’s clients come to us with questions concerning ethanol-free gasoline (E0).  These questions include items such as: Who uses E0 and why? How much E0 is being sold and where? What are the economics behind the product? In this article, we provide brief answers to those...
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West Coast Gasoline is Off the Bottom

July 6, 2020 10:31 am Published by Comments Off on West Coast Gasoline is Off the Bottom

July 6, 2020 By Dave Hackett We have all had a wild ride the last three months, and you can see that in transportation fuel statistics. This article builds on two earlier pieces in this series (one from April 15th and a second from May 7th), tracking the wild ride that fuels have taken along...
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West Coast Gasoline – Have we reached the bottom?

May 7, 2020 12:56 pm Published by Comments Off on West Coast Gasoline – Have we reached the bottom?

May 7, 2020 By Dave Hackett I started the first article in this series on April 15th with a question: “When was the last time you filled up?” Well, I still have not had to fill up either car, but I am down to a quarter tank on mine.  Maybe this week. From a gasoline...
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A Peek at Stillwater’s Office-less Culture

May 6, 2020 1:14 pm Published by Comments Off on A Peek at Stillwater’s Office-less Culture

May 6, 2020 by Megan Boutwell  In 1998, Dave Hackett started doing some consulting work out of his home office. For most of his career in transportation energy, Dave commuted from various homes in California, Connecticut, Virginia, and (again and finally) California to Mobil Oil offices in Los Angeles, Manhattan, Fairfax, back to Manhattan, and...
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Flash Report: 4Q2019 LCFS Data Show 160,000 MT Growth in the Credit Bank, RD Credits Sharply Rise

April 30, 2020 5:32 pm Published by Comments Off on Flash Report: 4Q2019 LCFS Data Show 160,000 MT Growth in the Credit Bank, RD Credits Sharply Rise

April 30, 2020 Today, CARB posted the fourth quarter 2019 data for the LCFS program. Although probably not the thing at the front of everyone’s minds given everything else going on in the world, the LCFS program rolls on, and the 4Q2019 report gives us insight into the credit bank situation going into 2020 and...
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Post-Coronavirus: What’s Next in the Environmental Commodities Markets

April 30, 2020 2:42 pm Published by Comments Off on Post-Coronavirus: What’s Next in the Environmental Commodities Markets

On April 30th, 2020, Stillwater President Dave Hackett participated in a webinar hosted by Parhelion Underwriting on the topic of how the fallout from COVID-19 will affect environmental commodities. Dave spoke about the federal Renewable Fuel Standard (RFS) and California’s Low Carbon Fuel Standard (LCFS) credit markets. To view a PDF version of Dave’s slide...
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What’s going on with crude? An internal Stillwater conversation in real-time as oil prices plummeted

April 21, 2020 3:21 pm Published by Comments Off on What’s going on with crude? An internal Stillwater conversation in real-time as oil prices plummeted

April 21, 2020 By Kendra Seymour As editor of Stillwater’s LCFS Newsletter and a contributor on many of Stillwater’s LCFS-related client projects, I spend most of my time working in renewables markets. Yesterday, as crude markets began showing particularly rare volatility, however, I caught up with my colleague Barry Schaps via Slack to get a...
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COVID-19 and the LCFS: Groundhog Day

April 15, 2020 2:00 pm Published by Comments Off on COVID-19 and the LCFS: Groundhog Day

April 15, 2020 By Leigh Noda For the past month, the Stillwater LCFS team has been publishing regular reports on how COVID-19 is affecting the LCFS program and the fuels markets governed by the program. This is the latest of that series. You can read our previous updates here. Want to receive updates like this and...
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West Coast Gasoline – Inventories Rise, Prices and Crude Runs Drop

April 15, 2020 1:28 pm Published by Comments Off on West Coast Gasoline – Inventories Rise, Prices and Crude Runs Drop

April 15, 2020 (This article has been updated from the original April 14th version) By Dave Hackett When was the last time you filled up? For me, it was about a month ago. Since then, I’ve driven maybe 50 miles, mostly to the store and back. I used to fill up about once a week;...
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Rebalancing Refinery Jet Production for Covid-19 – How Low Can You Go?

April 15, 2020 9:21 am Published by Comments Off on Rebalancing Refinery Jet Production for Covid-19 – How Low Can You Go?

April 14, 2020 By Adam Schubert For U.S. refiners, profitability is tightly linked to production of the three major “light” petroleum fuel products – gasoline, diesel, and jet fuel. Individual refineries are typically configured to optimize the yield of these three products with the most economical crudes available in their region and demand in accessible...
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COVID-19 and the LCFS: Ain’t No Sunshine

April 6, 2020 8:59 am Published by Comments Off on COVID-19 and the LCFS: Ain’t No Sunshine

April 3, 2020 Note: The title of today’s analysis pays tribute to onetime Navy aircraft mechanic and three-time Grammy Award winner Bill Withers who died March 30th. As AP reporter Mark Kennedy observed, Withers’ “death comes as the public has drawn inspiration from his music during the coronavirus pandemic, with health care workers, choirs, artists and more...
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Oh, What a Month! What does COVID-19 mean for the LCFS Credit Bank and Prices?

March 23, 2020 12:45 pm Published by Comments Off on Oh, What a Month! What does COVID-19 mean for the LCFS Credit Bank and Prices?

March 20, 2020 A month ago, WTI crude oil price closed at $52.10 per barrel, the Dow Jones closed at 29,232 and the S&P at 3,370. Yesterday, these values were $25.22, 20,087 and 2,409 respectively. Clearly, the past month has been unprecedented for both the crude oil and financial markets. Socially, almost everyone in the...
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COVID-19’s Economic Impacts on the LNG Market

March 11, 2020 8:50 am Published by Comments Off on COVID-19’s Economic Impacts on the LNG Market

March 11, 2020 By John Wolff Worldwide natural gas markets are unsettled by the current and plausible impacts of the COVID-19 virus.  There has been a widely reported reduction in Chinese crude oil and products demand as auto travel, commercial deliveries, and airline flights have been reduced. The likely duration of the economic impacts is...
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How the New Coronavirus and Crude Price War Could Dampen the RINs Markets and Boost the LCFS Credit Bank

March 10, 2020 2:11 pm Published by Comments Off on How the New Coronavirus and Crude Price War Could Dampen the RINs Markets and Boost the LCFS Credit Bank

March 10, 2020 By Leigh Noda The last week of February marked the biggest drop in the stock market since the financial crisis of 2008. The S&P index was down 11.5% on the week ending February 28th. The Dow Jones was down 12.4% over the same week. This compares to the week ending October 10,...
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Sustainable Aviation Fuel: Just Taking Off

March 6, 2020 12:40 pm Published by Comments Off on Sustainable Aviation Fuel: Just Taking Off

On March 3, 2020, Stillwater’s VP of Operations, Megan Boutwell, presented at the Aviation Noise & Emissions Symposium in San Diego. The summit was hosted by the UC Davis Air Quality Research Center. Megan spoke about Sustainable Aviation Fuel goals and trends. To view a PDF version of Megan’s slide deck, click here.

Food for Thought: Overly Aggressive NOx Reduction Has Delayed California’s Ozone Attainment by 15 Years

February 12, 2020 2:55 pm Published by Comments Off on Food for Thought: Overly Aggressive NOx Reduction Has Delayed California’s Ozone Attainment by 15 Years

February 12, 2020 By Gary Yowell The California Air Resources Board (CARB) has a long and proud history of ambitious reductions to air pollution which CARB deems necessary to meet ambient air quality standards. Continuing this 50-year trend, CARB is considering reducing its heavy-duty vehicles’ nitrogen oxides (NOx) standard by 90%. This new NOx standard[1]...
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IMO 2020: No Large Speed Bump Thus Far

February 11, 2020 1:47 pm Published by Comments Off on IMO 2020: No Large Speed Bump Thus Far

February 11, 2020 By Ralph Grimmer Over the past three years, Stillwater Associates has offered a series of articles on various aspects of IMO 2020. The long-awaited IMO 2020 regulations were implemented on January 1, 2020 – 40 days ago. In this article, we will provide our takeaways on how the initial rollout has gone,...
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Airlines want Renewable Jet Fuel, but Renewable Diesel is Stealing their Thunder

February 6, 2020 1:26 pm Published by Comments Off on Airlines want Renewable Jet Fuel, but Renewable Diesel is Stealing their Thunder

February 6, 2020 By Jim Mladenik Alternate jet fuel (AJF, also known as bio-jet or renewable jet fuel) has made the news lately as it is now included as an opt-in fuel under California’s Low Carbon Fuel Standard (LCFS), and many airlines are clamoring to reduce their carbon footprints and paint themselves as more climate-friendly....
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Flash Report: 3Q2019 LCFS Data Show a Continued Slowing Trend in Net Deficits

February 3, 2020 1:25 pm Published by Comments Off on Flash Report: 3Q2019 LCFS Data Show a Continued Slowing Trend in Net Deficits

February 3, 2020 On January 31st, 2020 CARB posted the third quarter of 2019 data for the LCFS program. In today’s flash report, we offer a quick look at the third-quarter data. Our comprehensive analysis will be published in Stillwater’s Quarterly LCFS Newsletter which is scheduled to be published on February 14th. The third-quarter data...
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95 RON Gasoline and the Political CAFE Ping-Pong Game

January 15, 2020 2:41 pm Published by Comments Off on 95 RON Gasoline and the Political CAFE Ping-Pong Game

January 15, 2020 By Ron Pike In an effort to further reduce hydrocarbon consumption in the U.S., 95 RON (Research Octane Number) gasoline has been suggested as a way to help achieve proposed higher corporate average fuel economy (CAFE) requirements. A higher RON allows an internal combustion engine to run at a higher compression ratio,...
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California Gasoline Retail Margin Quick to Rise, Slow to Drop

January 10, 2020 10:52 am Published by Comments Off on California Gasoline Retail Margin Quick to Rise, Slow to Drop

January 10, 2020 By Kendra Seymour In the course of our work, and due to our own curiosity, Stillwater tracks the California gasoline market. We thought our findings might be interesting to our readers as well! In our latest review of the data, we see that the strength of the retail margin (retail less taxes...
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An Updated Guide to EPA’s Tier 3 Gasoline Sulfur Standards

January 5, 2020 10:59 am Published by Comments Off on An Updated Guide to EPA’s Tier 3 Gasoline Sulfur Standards

January 5, 2020 by Mike Leister and E.J. Ledet Effective January 1, 2017, the U.S. Environmental Protection Agency (EPA) began requiring all U.S. gasoline to meet an annual 10 parts per million (ppm) average sulfur requirement as part of its new Tier 3 vehicle and fuel regulations. (Stillwater wrote a quick guide to Tier 3...
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Sustainable Aviation Fuel – the key to CORSIA compliance

November 21, 2019 9:35 am Published by Comments Off on Sustainable Aviation Fuel – the key to CORSIA compliance

November 21, 2019 By Megan Boutwell Last month we looked at how CORSIA, the International Civil Aviation Organization’s (ICAO) carbon offsetting and reduction scheme for international aviation, is being implemented. The rule is currently in the baseline development phase and won’t be mandatory for international flights until 2027. This international rule is one pillar in...
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2Q2019 LCFS Data – Insights into the Future of Clean Fuels Programs

November 15, 2019 9:40 am Published by Comments Off on 2Q2019 LCFS Data – Insights into the Future of Clean Fuels Programs

November 15, 2019 By Leigh Noda On October 31st, the California Air Resources Board (CARB) released the data reported by fuel-reporting Entities into the Low Carbon Fuel Standard (LCFS) Reporting Tool (LRT) through the second quarter of 2019. Stillwater has analyzed the data and included our analysis in our Second Quarter 2019 LCFS Newsletter (subscription...
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Flash Report: 2Q2019 LCFS Data Show Slowing Drawdown of Credit Bank

November 4, 2019 3:35 pm Published by Comments Off on Flash Report: 2Q2019 LCFS Data Show Slowing Drawdown of Credit Bank

November 1, 2019 On October 31st, CARB posted the second quarter of 2019 data for the LCFS program. In today’s flash report, we offer a quick look at the data. Our comprehensive analysis will be published in Stillwater’s Quarterly LCFS Newsletter which is scheduled to be published on November 14th. The second quarter data show...
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CORSIA – How are we going to police international aviation emissions?

October 24, 2019 11:41 am Published by Comments Off on CORSIA – How are we going to police international aviation emissions?

October 24, 2019 By Megan Boutwell As we explained in our CORSIA 101 article a few months back, the goal of CORSIA – the International Civil Aviation Organization’s (ICAO) carbon offsetting and reduction scheme for international aviation – is to cap carbon emissions from international aviation at 2020 levels. In many ways, this United Nations...
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The Ultimate E-Ticket: California Gasoline Prices*

October 22, 2019 11:34 am Published by Comments Off on The Ultimate E-Ticket: California Gasoline Prices*

October 22, 2019 By Dave Hackett On Monday, October 21, my friends at the California Energy Commission (CEC) released “Additional Analysis on Gasoline Prices in California.” This report is a follow-on to a May 2019 report that had been requested by Governor Gavin Newsom. Both reports examine why California gasoline prices are higher than the...
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How Accurate are VMT Estimates?

October 5, 2019 11:48 am Published by Comments Off on How Accurate are VMT Estimates?

October 15, 2019 By Gary Yowell Estimating vehicle miles traveled (VMT) has important implications for analyzing and forecasting transportation fuel use and carbon dioxide CO2 emissions. VMT estimates are frequently used as the foundation for transportation fuel use analyses and forecasts. This practice should be carefully examined, especially given the four widely varying VMT estimates...
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Where were you when Saudi Aramco was attacked?

September 26, 2019 10:29 am Published by Comments Off on Where were you when Saudi Aramco was attacked?

September 25, 2019 by Simoon Cannon The recent bombing of the Saudi Arabian Abqaiq gas-oil separation processing plant on September 14th sparked a frenzy of conversations among oil and gas professionals. Wall Street wanted to know how this geopolitical event would affect the price of crude oil, whether it would become a macroeconomic nightmare for...
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Why Aren’t Refiners Recovering Stationary Source Cap & Trade Costs?

September 20, 2019 10:05 am Published by Comments Off on Why Aren’t Refiners Recovering Stationary Source Cap & Trade Costs?

September 20, 2019 by Jeff Kennedy “The more things change, the more they stay the same.” I’m sitting here on a Friday afternoon, contemplating just how true that old adage is. More than 25 years ago, before Stillwater was launched and before the ExxonMobil merger, I was with Mobil West Coast Supply in Long Beach...
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2019 West Coast Harbor Safety Committee Summit Presentation on IMO 2020

September 19, 2019 12:19 pm Published by Comments Off on 2019 West Coast Harbor Safety Committee Summit Presentation on IMO 2020

On September 19th, Stillwater Senior Associate Ralph Grimmer presented at the 2019 West Coast Harbor Safety Committee Summit on the Queen Mary off the coast of Long Beach. The summit was sponsored by the California Department of Fish and Wildlife’s Office of Spill Prevention and Response (OSPR) and the Pacific States/British Columbia Oil Spill Task...
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Clean Marine Fuel in 2020: An Opportunity for Biofuel?

September 1, 2019 12:46 pm Published by Comments Off on Clean Marine Fuel in 2020: An Opportunity for Biofuel?

September 1, 2019 by Mike Newman of Parhelion Underwriting  2018 saw the shipping industry take its first steps towards addressing the challenge of climate change when, at its 72nd session in April, IMO’s Marine Environment Protection Committee (MEPC) adopted an initial strategy to reduce greenhouse gas (GHG) emissions from shipping by at least 50% by...
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How Do ZEV Emissions Stack Up Against Super-Clean Gasoline and Diesel Engines?

August 21, 2019 2:58 pm Published by Comments Off on How Do ZEV Emissions Stack Up Against Super-Clean Gasoline and Diesel Engines?

August 21, 2019 by Gary Yowell In 1990, California adopted the Zero Emission Vehicle (ZEV) Mandate designed to help achieve the state’s long-term emissions reduction goals by requiring manufacturers to sell specific quantities of battery-electric, fuel cell, and plug-in hybrid electric vehicles. The ZEV mandate has seen several modifications over the past three decades, and...
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Parhelion’s new LCFS Insurance

August 1, 2019 1:45 pm Published by Comments Off on Parhelion’s new LCFS Insurance

Several years ago, Parhelion introduced the Platinum Carbon Credit invalidation™ insurance product to the California Cap & Trade market and followed up with the Platinum RINs invalidation™ insurance policy for the U.S. Renewable Fuels Standard (RFS) earlier this year. They have now entered another environmental commodity market – California’s Low Carbon Fuel Standard (LCFS). We,...
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IMO 2020: Current Futures Prices and Refiner Processing Options

June 26, 2019 9:58 pm Published by Comments Off on IMO 2020: Current Futures Prices and Refiner Processing Options

June 27, 2019 By Ralph Grimmer IMO 2020 implementation is six months away, and shipowners will likely start purchasing IMO 2020-compliant marine fuel (for vessels without onboard scrubbers) in the next three months. Stillwater Associates has offered a series of articles on various aspects of IMO 2020 over the past two years. In this month’s...
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California Gasoline Prices – Part 2

June 26, 2019 7:28 pm Published by Comments Off on California Gasoline Prices – Part 2

June 26, 2019 By Dave Hackett Last month, I wrote about spot California gasoline prices and promised to write about California retail gasoline prices this month. As explained by my Petroleum Market Advisory Committee (PMAC) colleague, Professor Severin Borenstein, the retail gasoline prices in this state are higher than the U.S. average, even after deducting...
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Knee-High by the Fourth of July?

June 22, 2019 9:41 am Published by Comments Off on Knee-High by the Fourth of July?

June 22, 2019 By Adam Schubert Rising gasoline prices are making headlines, and though there are many forces at work, one of those contributing factors isn’t receiving the same buzz as others. Corn farmers are facing incredible challenges this year, creating upward pressure on ethanol prices which in-turn increase the prices of the final, blended...
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A Look at Oregon’s First Credit Clearance Market

June 20, 2019 9:34 am Published by Comments Off on A Look at Oregon’s First Credit Clearance Market

June 20, 2019 By Jim Mladenik On May 31st, the Oregon Department of Environmental Quality (DEQ) issued a statement explaining the need for a Credit Clearance Market (CCM) to enable deficit holders in the Clean Fuels Program (CFP) to balance their accounts for the 2018 calendar year. Six entities (ARS Fresno, Conrad & Bischoff, Costco,...
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California Gasoline Prices

May 28, 2019 1:33 pm Published by Comments Off on California Gasoline Prices

May 28, 2019 By Dave Hackett Stillwater has been writing about California gasoline prices for a long time. Because gasoline prices on the West Coast, and in California in particular, tend to be volatile toward the upside, this issue always gets the attention of consumers and politicians. Our first engagement to look at this subject...
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U.S. Refiners Supply Domestic Demand While Significantly Increasing Exports

May 20, 2019 1:13 pm Published by Comments Off on U.S. Refiners Supply Domestic Demand While Significantly Increasing Exports

By Megan Boutwell We first created the graphic below, illustrating the flow of petroleum products in and out of the U.S. by PADD for the year, for a talk at a conference a few years ago. One of our friends who attended that conference asked for an update, so today we’re offering just that! As...
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LCFS Credit and Price Trends

April 25, 2019 2:26 pm Published by Comments Off on LCFS Credit and Price Trends

On April 24, 2019, Stillwater’s VP of Operations, Megan Boutwell, presented Stillwater’s analysis of California’s Low Carbon Fuel Standard (LCFS) credit and price trends at the North American Carbon World (NACW) Conference in Los Angeles. You can view a PDF of Megan’s presentation here. Want LCFS news, data, and exclusive expert analysis delivered to your...
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Breaking down California’s gasoline price spike

April 17, 2019 9:07 pm Published by Comments Off on Breaking down California’s gasoline price spike

April 17, 2019 By Kendra Seymour California’s gasoline prices consistently outpace average pump prices across the U.S., but in the past month, Californians have experienced an average price increase of roughly 60 cents per gallon, spiking the Golden State’s fuel prices even higher than usual, as you can see in the chart from GasBuddy, below....
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California’s Fossil Fuel “Sin Tax”

April 16, 2019 4:01 pm Published by Comments Off on California’s Fossil Fuel “Sin Tax”

April 16, 2019 By John Faulstich With the recent increase in gasoline prices in California (the retail gas price average just bumped up over $4 per gallon) and renewed interest in this subject, we thought it timely to present an overview of the major components of what goes into the price of gasoline at the...
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How the Midwest bomb cyclone could impact gasoline prices throughout the U.S.

April 8, 2019 1:51 pm Published by Comments Off on How the Midwest bomb cyclone could impact gasoline prices throughout the U.S.

April 8, 2019 By Barry Schaps Whoever heard of a bomb cyclone weather event? In case you haven’t, here’s the rundown: A bomb cyclone is the rapid development of a “cyclonic low-pressure area” which occurs most frequently in marine environments in the winter months but can occur in continental settings and at other times of...
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IMO 2020: How Will the Marketplace Value New Compliant Marine Fuels?

March 20, 2019 11:12 am Published by Comments Off on IMO 2020: How Will the Marketplace Value New Compliant Marine Fuels?

March 20, 2019 By Jim Mladenik & Ralph Grimmer Over the past two years, Stillwater Associates has offered a series of articles on various aspects of IMO 2020. Implementation of IMO 2020 is now less than ten months away. In this article, we will provide information on data sources providing visibility to spot and futures...
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California’s LCFS Solution Gets National Stage Time in Canada

March 15, 2019 3:19 pm Published by Comments Off on California’s LCFS Solution Gets National Stage Time in Canada

Stillwater has written a lot about the California Low Carbon Fuel Standard (LCFS) program over the years, and we even publish a one-of-a-kind LCFS Newsletter covering California’s program. We’ve also reported on Oregon’s Clean Fuels Program (CFP) from its inception in 2016. Now, we turn to Canada’s under-construction Clean Fuel Standard (CFS) which aims to...
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Sustainable Aviation Fuels Prepare for Takeoff in Washington State

March 13, 2019 11:33 am Published by Comments Off on Sustainable Aviation Fuels Prepare for Takeoff in Washington State

March 13, 2019 By Kendra Seymour My colleagues Megan Boutwell, Jim Mladenik, and I attended the first-ever Washington Sustainable Aviation Fuels (SAF) Summit last week in Seattle. The summit was hosted by Earth Day Northwest 2020 and presented by Boeing, Alaska Airlines, Delta Air Lines, and the Port of Seattle. Washington Governor and U.S. Presidential...
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Energy Outlook Shows Decline in Hydrocarbon Fuel Demand after 2030

March 1, 2019 2:48 pm Published by Comments Off on Energy Outlook Shows Decline in Hydrocarbon Fuel Demand after 2030

March 1, 2019 By John Wolff Anthony Teo discussed DNV GL’s 2018 Energy Outlook during the Liquefied Gas Senior Executive Forum in Houston which was hosted by the U.S. Coast Guard (USCG) on December 4, 2018. DNV GL’s second annual independent energy modeling outlook extended the forecast to 2050, from a forecast to 2030 in...
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CORSIA 101 – A Beginner’s Guide

February 20, 2019 12:11 pm Published by Comments Off on CORSIA 101 – A Beginner’s Guide

What is CORSIA? CORSIA (the Carbon Offsetting and Reduction Scheme for International Aviation) is a program administered by the International Civil Aviation Organization (ICAO) with a goal of capping CO2 (carbon) emissions from international aviation at 2020 levels. A future goal is to reduce net carbon emissions fifty percent by 2050 compared to 2005 levels....
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Water Management in the Downstream

February 20, 2019 11:43 am Published by Comments Off on Water Management in the Downstream

February 20, 2019 by E.J. Ledet Water contamination incidents in the transportation fuels supply chain can have a dramatic effect on fuel quality. Fortunately, such incidents can be prevented with the implementation of proper water-management procedures. In this article, we identify the common water contamination issues along the downstream fuels supply chain and offer helpful...
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U.S. LNG Bunkering Implementation and Safety Practices

February 1, 2019 3:10 pm Published by Comments Off on U.S. LNG Bunkering Implementation and Safety Practices

February 1, 2019 By John Wolff On December 4, 2018, the U.S. Coast Guard (USCG) hosted its 2018 Liquefied Gas Senior Executive Forum in Houston. The program was co-sponsored by the Society of International Gas Tanker and Terminal Operators (SIGGTO) and the Society of Gas as a Marine Fuel (SGMF). The forum’s speakers addressed many...
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Webinar: IMO 2020 and the Sulphur/Sulphuric Acid Markets

January 16, 2019 10:27 am Published by Comments Off on Webinar: IMO 2020 and the Sulphur/Sulphuric Acid Markets

Acuity Commodities has partnered with Stillwater Associates to model three scenarios reflecting implementation of new International Maritime Organization (IMO) marine fuel rule from January 1, 2020, when the maximum sulphur content in bunker fuel oil has to be reduced to 0.50%. With the IMO 2020 implementation deadline unlikely to be postponed and less than 12...
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My Carbon Beats your Carbon – Greenhouse Gas Reduction Technology Lifecycles

January 12, 2019 9:39 am Published by Comments Off on My Carbon Beats your Carbon – Greenhouse Gas Reduction Technology Lifecycles

January 12, 2019 By Leigh Noda Humankind is unique in the animal kingdom in our ability to creatively utilize energy. Over the history of humankind, the primary source of energy we’ve used has changed from self to dung to wood to hydro to coal to petroleum, and now we are transitioning toward renewables and energy...
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LNG Bunkering in U.S. Ports: Change is Coming

December 23, 2018 6:51 am Published by Comments Off on LNG Bunkering in U.S. Ports: Change is Coming

By John Wolff, Senior Associate Image: KLAW LNG Liquefied natural gas (LNG) can be used as a fuel for ships (and trucks and buses) with specially designed fuel tanks. Currently, few U.S.- and foreign-flagged vessels are fueled with LNG, although that number may increase with the coming IMO 2020 regulation. U.S. officials have historically treated...
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A Look Ahead: The Long Term LCFS Credit Price

December 14, 2018 10:06 am Published by Comments Off on A Look Ahead: The Long Term LCFS Credit Price

On December 13, 2018, Stillwater Senior Associate Leigh Noda participated as a panelist at the OPIS LCFS & Carbon Markets Workshop in San Francisco. The panelists were asked to address: “What exactly will the long-term price of the LCFS credit look like? As the LCFS program heads into 2020 and beyond, what products will produce the...
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Moving Renewable Fuels to Market: U.S. Infrastructure

December 10, 2018 9:57 am Published by Comments Off on Moving Renewable Fuels to Market: U.S. Infrastructure

On December 10, 2018, Dave Hackett provided a presentation on U.S. renewable fuels transportation infrastructure to a joint government and industry working group. This presentation explains how ethanol and biodiesel are moved from renewable fuels production centers to markets where they are blended with petroleum products for retail sale. You can view a PDF of...
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The Problem of Invalidated RINs in the Renewable Fuel Standard

November 14, 2018 10:07 am Published by Comments Off on The Problem of Invalidated RINs in the Renewable Fuel Standard

November 14, 2018 by Mike Newman of Parhelion Underwriting Under the Renewable Fuel Standard (RFS), the Environmental Protection Agency (EPA) imposed a “buyer beware” approach to the purchase and sale of Renewable Identification Numbers (RINs). This creates a liability for any buyer of RINs, making them responsible for purchases of invalid RINS, even if done...
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West Coast Crude Oil Supply

November 1, 2018 1:20 pm Published by Comments Off on West Coast Crude Oil Supply

November 1, 2018 by David Hackett Last month, our friends at RBN Energy held a conference in Houston (of course) to bring together people interested in the development of crude oil, natural gas and natural gas liquids from the Permian Basin in West Texas. Figure 1. Crude-Producing Regions in the United States Source: U.S. Energy...
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Has California Gasoline Demand Peaked?

October 17, 2018 2:56 pm Published by Comments Off on Has California Gasoline Demand Peaked?

October 17, 2018 by Dave Hackett Stillwater is often asked to provide forecasts for petroleum demand. Clients use these forecasts to understand how the market is likely to change. For the last four or five years, we have predicted a drop in gasoline demand, mostly driven by cars and light-duty trucks getting better gas mileage...
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California Carbon Info: Future Supply and Demand of California Carbon Offsets

October 17, 2018 12:35 pm Published by Comments Off on California Carbon Info: Future Supply and Demand of California Carbon Offsets

As the passage of AB 398 has strengthened and extended California’s Cap and Trade program, we think our readers will benefit from a spotlight on the trends in the carbon credit market. As such, we periodically feature guest articles on California’s Cap and Trade program from our friends at CaliforniaCarbon.info. CaliforniaCarbon.info is a comprehensive information service...
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War Story: “Go figure it out”

October 15, 2018 11:03 am Published by Comments Off on War Story: “Go figure it out”

by Brian Conroy When Stillwater Associate Brian Conroy worked for BP in 2006 as Global Sales and Market Development Manager of Specialty Chemicals, he was offered an opportunity to try something new. With a background in chemicals, beginning in research and progressing to various roles in business, he was ready for the change. BP’s CEO...
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War Story: California’s Lengthy Multi-Media Evaluation Process

September 12, 2018 11:34 am Published by Comments Off on War Story: California’s Lengthy Multi-Media Evaluation Process

September 12, 2018 By Jessica Loomis Twenty years ago, methyl tert-butyl ether (MTBE) was a common additive used to oxygenate and raise the octane number in gasoline, but when incidents of MTBE leaking occurred from underground storage tanks at gas stations in California, groundwater contamination became a growing issue. MTBE isn’t particularly toxic, but its...
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Agile Mergers & Acquisitions Advisory Services

September 10, 2018 4:30 pm Published by Comments Off on Agile Mergers & Acquisitions Advisory Services

September 10, 2018 By Vaughn Hulleman Agile is a project management method whose principles include placing customer satisfaction as the highest priority and delivering products or services frequently. This approach is used mostly in software development, but can advisory services for Mergers and Acquisitions be Agile? The Agile project management approach includes breaking the overall...
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