Processing, compliance options can reduce cost of producing new gasoline
The price difference between US conventional and reformulated gasolines is expected to be 3.1[cents]/gal higher, less than the 4[cents]/gal difference indicated in May by the New York Mercantile Exchange. The difference will be set by the central Atlantic and New England areas, which Bonner Moore projects to be significantly short on reformulated gasoline and long on conventional gasoline. Bonner Moore consultants, in an unpublished report, say refiners in the central Atlantic will not be able to economically convert much more than 70% of their gasoline output to reformulated gasoline. As a result, gasoline movements through the pipeline system supplying Petroleum Administration for Defense District (PADD) 1-the US East Coast-will have to increase to deliver reformulated gasoline produced on the Gulf Coast to New England and the Central Atlantic region. The paper discusses production costs, processing options, price differential, compliance, and benefits from averaging both oxygen and benzene parameters.
- OSTI ID:
- 7178944
- Journal Information:
- Oil and Gas Journal; (United States), Vol. 92:28; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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