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Reduction in refining activity in the Northeast, as reflected in
recently announced plans to idle over 50% of the regional refining
capacity, is likely to impact supplies of petroleum products. The
transition period as supply sources shift could be problematic for
Ultra-Low Sulfur Diesel (ULSD), gasoline, and jet fuel supplies.
Prolonged uncertainty over the coming months with regard to the
disposition and operation of important logistical assets such as
pipelines, ports and storage would compound adjustment challenges.
Reduced short-term product supply flexibility due to longer
delivery times and potential transportation bottlenecks for sources
outside the region could also increase price volatility. This book
explores potential developments of Northeast refinery reductions
with a focus on alternative supply options; available pipeline
capacity, implications for regional transportation fuels markets,
heating oil supply and prices in the Northeast, and fuel security
for the military.
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