There is an imbalance between supply and demand in North American refined products and renewable fuels markets. Oftentimes it is difficult to move product from where it is made to markets where it is needed. Traders at U.S. Oil utilize their assets, expertise, and multi-modal logistics capabilities to help meet market demands with sufficient supply. This is accomplished through the use of pipeline, rail car, light oil barge and truck assets. In aggregate, U.S. Oil transports nearly 100 million barrels (4.2 billion gallons) of refined products and renewable fuel each year.
Products traded include:
U.S. Oil’s Wholesale, Retail Branded, Terminal and Trading teams help to provide reliable fuel supply and competitive pricing from both owned, operated and third-party terminals across the United States.
Nearly 40 million Americans fill up their gas tanks on a daily basis and, over the course of one year, the average American uses 22.27 barrels of oil. Although demand for gasoline is expected to fall at a rate of 2% each year, the fall in oil prices has caused an increase in gasoline demand, and more consumers are taking advantage of these savings by purchasing larger vehicles and driving more miles.
Gasoline is made up of a mixture of volatile, flammable liquid hydrocarbons derived from petroleum. On average, a 42-gallon barrel of crude oil yields about 19 gallons of gasoline when processed in an oil refinery. In the refinery, gasoline components are blended to create certain octane ratings to improve or modify the performance and use of fuel. Some components U.S. Oil trades include: natural gasoline, butane, isooctane, reformate, alkylate and raffinate.
With the demand for diesel on the rise, purchasing ULSD (Ultra-Low-Sulfur Diesel) from a reliable source will keep your business moving.
With U.S. gasoline demand steadily decreasing, demand for diesel fuel has been increasing. The Energy Information Agency (EIA) predicts diesel fuel consumption will increase by 26% from now through 2040.
U.S. Oil-owned and operated terminals pride themselves on local sourcing of ethanol, supporting local farmers and local economies. The Ethanol supplied from U.S. Oil-owned and operated terminals is sourced from local farms in the same states as the terminals. When you purchase ethanol products from U.S. Oil-owned terminals, you can be assured that the products used are locally grown, and supporting the local economy.
Ethanol is a renewable, domestically produced alcohol fuel made from plant material, such as corn, sugar cane or grasses.
For much of the last four years, U.S. Ethanol has been the lowest-cost motor fuel and octane source on the planet, and the U.S. leads the world in ethanol production, accounting for 60% of global output. As a result, global demand is booming and American-made ethanol is rapidly finding its way into new international markets. Ethanol exports were approximately 825 million gallons in 20142 and reached 836 million gallons in 20153.
Most gasoline sold in the U.S. contains up to 10% ethanol, although the amount varies by region. Advantages include:
- Domestically produced (U.S. Oil sources ethanol from local farms for owned and operated terminals)
- Lower emissions of some air pollutants
- More resistant to engine knock1
Improved fuel lubricity, economics and sustainability are only a few of the benefits of biodiesel. U.S. Oil offers B100, B99 or bio blends at various terminals.
Biodiesel is a renewable, clean-burning diesel replacement made from a diverse mix of domestic and renewable resources. Although it contains no petroleum, it can be blended at any level with petroleum diesel to create a biodiesel blend.
Renewable Fuel Standard
Biodiesel qualifies as a biomass-based diesel category and advanced biofuel category within the Renewable Fuels Standard (RFS-2) program created under the Energy Independence and Security Act (EISA) of 2007. In 2015 biomass-based diesel volumes reached 1.814 billion gallons, outpacing the 1.73 billion gallons called for in the 2015 RFS mandate. RFS mandates call for an increase of biodiesel to 1.9 billion gallons in 2016 and 2 billion gallons in 2017.
Biodiesel achieves a life cycle Green House Gas emission reduction of at least 50% compared to baseline petroleum1. This renewable fuel, made from different types of oils, fats and waste products, means less pollution of the environment from waste products.
Jet fuel is the fourth most used petroleum product in the United States. Nearly 1.5 million barrels per day of jet fuel were consumed in 20141. There are numerous varieties of jet fuel produced for each type of aircraft. Commercial and military turbo jet and turbo prop aircraft engines use a kerosene-based fuel with a maximum distillation temperature of 400 degrees Fahrenheit.
Naphtha-type jet fuel has an average gravity of 52.8 degrees API and 20% to 90% distillation temperatures of 290 to 470 degrees Fahrenheit. It is used primarily for military turbojet and turboprop aircraft engines because it has a lower freeze point and meets engine requirement at high altitudes and speeds.
U.S. Oil supplies quality marine fuels to customers at ports throughout the Great Lakes region, leveraging a network of strategically located company-owned and operated and third-party bulk storage facilities. We utilize tank trucks to transport marine gasoline and diesel from dozens of key ports to vessels.
U.S. Oil also owns its own barge to move products across the Great Lakes. The "Great Lakes" is a 70,000 barrel U.S. flag clean petroleum products barge that transports 2.2 million barrels of oil a year to ports in the U.S. and Canada.
Propane, sometimes known as liquefied petroleum gas, or LPG, is a byproduct of natural gas processing and oil refining. LPG is normally compressed and stored as a liquid. It is nontoxic, colorless and virtually odorless. This clean fuel produces less greenhouse gas pollutants than gasoline and diesel. America produces more than enough propane to meet demand; U.S. is the largest producer of the abundant fuel.
Propane is commonly used for space and water heating, cooking and as fuel for vehicles. Currently, propane is used in 48 million households as well as in many businesses for the purposes stated earlier.
With up to 56,000 miles of pipeline and nearly 6,000 retail dealer locations nationwide, propane is readily available and easily portable.
Butane is a hydrocarbon gas that falls under the label of "LPG" or liquefied petroleum gas. It is a flammable hydrocarbon that is liquefied through pressurization.
Butane can be used for gasoline blending, fuel gas or as a petrochemical feedstock. Because it is highly flammable, butane is often used for heating and often sold bottled for use in outdoor grills or camping stoves.
RINs stands for Renewable Identification Numbers, established by the EPA as the mechanisms used to implement the Renewable Fuel Standard (RFS). RFS exists to increase the amount of biofuels in gasoline. Today, roughly 10% of fuel sold for motor fuel is corn-based ethanol.
RINs are used for record keeping and as a method to help the EPA meet specific RFS targets totaling 36 billion gallons of renewable fuels used by 2022. Each RIN is a 38-character alphanumeric code assigned to each gallon of renewable fuel produced or imported into the U.S. When renewable fuels are blended into gas and diesel fuel or sold to consumers, the RIN representing the renewable attribute of the fuel is separated from the physical biofuel and can be used for compliance purposes or traded. These RINs have a market value attached to them and provide flexibility for obligated parties to meet their Renewable Volume Obligations. They can either acquire RINs by purchasing and blending physical quantities of biofuels, or by purchasing already separated RINs and submitting them.