October 20, 2012:

NDOLA Fuel Terminal and Indeni Petroleum Refinery have sufficient fuel stocks to meet the national demand for the remaining 10 days, Parliament heard yesterday. Indeni Petroleum Refinery shut down on October 7, 2012, for the annual maintenance and would resume operations on October 28. Mines, Energy and Water Development Minister Yamfwa Mukanga told Parliament yesterday that there were 19,144 cubic metres of petrol that could cover 24 days of national consumption. Mr Mukanga said in a ministerial statement that as of yesterday, there were 24,064 cubic metres of diesel to cover 14 days and 1,633 cubic metres of Kerosene for 33 days. "As regards availability of Jet A1, the oil marketing companies (OMCs) that supply Jet A1 have been authorised to import a total volume of 12,900 cubic metres of Jet A1 and are currently doing so," he said. Mr Mukanga said sufficient quantities of Jet A1 were available for the recent increased demand in air traffic to Zambia. He said the country had continued to import diesel and petrol at a rate of 1,200 cubic metres and 525 cubic metres, respectively, per day while maintenance works at Indeni were on schedule. The minister said some of the maintenance works carried out at the refinery were inspection of seven refinery furnaces and 14 heat exchanges, as well as servicing of the main compressor. "It should be noted that the refinery shutdown is mainly for regeneration of the catalysts used in the production of petrol, which usually finishes a year of use," he said. He appealed to bulk fuel suppliers, retailers and consumers to go about their usual business without any anxiety, adding that anybody could contact his office or Energy Regulation Board for clarifications.

In supplementary questions, UPND Gwembe MP Brian Ntundu wondered whether the country would not experience fuel shortages, but in response Mr Mukanga said there were sufficient fuel stocks. Mr Mukanga also said fuel imported by OMCs was certified safe. He was responding to MMD Mumbwa MP Brian Chituwo who asked on the safety of imported fuels by OMCs. Zambia consumes about two million litres of diesel per day and 700,000 litres of petrol daily .

By Allafrica.com

October 20, 2012:

Students at De Anza College commute from places as far as Tracy and the rise in gas prices up to $6 per gallon may be more than what college goers can afford on a weekly basis. “There are other options like taking public transportation; however, I don’t have time and it is very inconvenient,” said Maria Guardian, 21, De Anza student, who finds it ridiculous that gas prices are burning a hole through her pocket. Price increase that has taken place over the past couple of weeks was caused by several refinery disruptions. The Chevron plant in Richmond is the Bay Area’s largest refinery, processing 240,000 barrels of crude oil per day, according to Richmond.chevron.com. The refinery is producing at a reduced capacity and a pipeline that transports crude oil to Northern California was shut down. Since the large fire at the refinery in August, Bay Area residents have been left with a lighter wallet and paying record prices. But, it is surprising that one  out of 14 refineries in California would cause such a extreme escalation in prices. How could one refinery shake up the proportionality of demand and supply? According to energyalmanac.ca.gov, California produces up to 42 million gallons of gasoline every day, which is not enough to cover the 43 gallons of gasoline that Californians consume daily.

To keep up the supply, oil companies import upto 3.5 million gallons of gasoline per day in California to meet the demand, according to Western States Petroleum Association. California clear-burning gasoline regulation restricts the state from using lower grade gasoline that cause higher levels of air pollution, making California the state with the cleanest gasoline. And the production of such a high grade gasoline is more expensive. This is also one of the reasons why California cannot import gasoline immediately from neighboring states to meet the demand. The quality of the gasoline just doesn’t comply with that of the standard set by the regulation.  Contributing to the already pricey situation, the power failure at the Exxon Mobil refinery in Torrance could possibly cause gas leakage, leading to failure in meeting demands, according to Los Angeles Daily News. “At the end of the day, I rely on my car for getting me to school, work, running errands, and et cetera.” said Cecilia Ledesma, 20, third year at DeAnza. “No matter how much it will hurt my wallet I am still going to buy it because it’s a necessity.” Prices are expected to decrease within a few weeks as the refineries get back up to speed.

By Lavozdeanza.com

October 20, 2012:

Early fall run-up in gasoline prices is fading fast. With inventories rising and demand slowing, wholesale gas prices are plunging. Consumers should see some major price cuts at the pump within weeks.

Autumn gasoline prices are about to drop faster than fall foliage. With inventories rising and demand waning, gasoline prices could plunge 50 cents a gallon from October's $3.86 peak average over the next few weeks, providing a lift for the economy and possibly becoming a factor in next month's presidential election.  Gasoline, now averaging $3.69 a gallon, is expected to fall to $3.35 or lower by late November. In some regions, prices have already sunk below $3. "Most of the country is heading appreciably lower the next few weeks,'' says Tom Kloza of the Oil Price Information Service, who notes wholesale prices in some key markets have dropped from as high as $4.35 a gallon to $2.71. Pump prices typically lag big wholesale drops. But Kloza expects retail prices to sink five to 15 cents a gallon over each of the next three weeks. The drop could provide a boost to consumer spending and influence next month's presidential race, where gas prices have been a hot-button issue for much of the campaign. Several battleground states, including Ohio, Pennsylvania and Wisconsin, are enjoying big price drops. "Certainly, lower gas prices are helpful in terms of consumer spending by increasing disposable income,'' says Brian Bethune, chief economist at Alpha Economic Foresights. "And if prices come down at a rapid rate in the next three weeks, that would tend to help the incumbent. It may not be logical, but if people see problems with the high cost of food or gas, it's the president who tends to get the blame."

Gas prices have remained stubbornly high well past their traditional Memorial Day weekend peak, due largely to supply shortages and refinery woes on the West Coast and Midwest. But with oil inventories rising and production issues ebbing, prices have been easing the past week, a trend likely to accelerate. "This is very much gravity at work,'' Kloza says. "The faster prices soar, the more prone they are to panic sell-offs."  Kloza expects prices to bottom in the $3.30 range. Gasbuddy.com analyst Patrick DeHaan and energy analyst Brian Milne of Telvent DTN see a $3.35 bottom. Barring rising troubles in the Middle East or refinery issues in the U.S., prices could remain in that range through early 2013. On Friday, gasbuddy.com was tracking some central Ohio stations selling gas for $2.97 a gallon. Gas prices remain stubbornly high in California -- the nation's priciest state averaging $4.51 a gallon -- although some stations are charging more than $5. Energy experts expect prices to bottom in the $4 range. "California is not completely out of the woods yet regarding supplies, and their refineries haven't been able to keep up,'' Milne says.

By USA Today

October 20, 2012:

A second man who was injured in an explosion at a southern Oklahoma oil refinery has died. A University of Oklahoma Medical Center spokesman says Russell Mann of Davis died Tuesday at the Oklahoma City hospital. Mann was injured and Billy Smith of Pauls Valley was killed in the Sept. 28 explosion of a boiler at Wynnewood Refining Co., owned by CVR Energy Inc. of Sugar Land, Texas. CVR officials have said the explosion occurred as the boiler was being restarted following scheduled maintenance and upkeep _ a process known as a "turnaround." The turnaround resumed the following day. Officials with CVR did not immediately return phone calls seeking comment. A U.S. Department of Labor spokeswoman said an investigation into the explosion is ongoing and declined further comment.

By The Associate Press

October 20, 2012:

The Vale refinery and smelter in Thompson will remain open for a year longer than was originally planned, a company official said today. Ryan Land, manager of corporate communications for the mining giant’s Manitoba operations, said the refinery and smelter will remain open until the end of 2015, instead of the end of 2014. However, Land also confirmed that Vale may suspend mining operations at its Birchtree Mine next August unless ways can be found to boost production and reduce operating costs at the ageing mine. And because of plunging iron ore prices, the company is also delaying for a year a decision on how to proceed with the $1-billion development of its new 1-D mine near Thompson, Land added. He said the company is optimistic ways will be found to keep the Birchtree Mine open beyond next August. And the company is still committed to proceeding with the 1-D project. It’s just a question of when and how. "1-D is the future of Thompson," he added.

By Winnipeg Free Press