Today in Energy
Mexico Week: U.S.-Mexico electricity trade is small, with tight regional focus
Note: Click to enlarge.
This is the fifth in a series of five articles on U.S.-Mexico energy trade.
U.S. electricity trade with Mexico represents a small fraction—less than a hundredth of a percent—of total U.S. electricity use. A small amount of electricity trade with Mexico exists in California, New Mexico, and Texas, where transmission lines cross the border (see map):
tags: electricity , exports , generation , imports , international , Mexico , transmission
Mexico Week: Record Mexican natural gas imports include higher flows from U.S.
This is the fourth in a series of five articles on U.S.-Mexico energy trade.
Mexico imported a record volume of natural gas in 2012, about 2.1 billion cubic feet per day (Bcf/d), which was up 21% from 2011 (see chart above). Natural gas flows from U.S. pipelines accounted for about 80% of Mexico's overall natural gas imports in 2012; U.S. natural gas exports to Mexico in 2012 were almost 1.7 Bcf/d, more than 24% higher than in 2011. Since 2006, imports of liquefied natural gas (LNG) have made up the remainder of Mexico's imported natural gas needs. Mexico's LNG imports averaged about 0.4 Bcf/d in 2012, representing about 20% of its overall natural gas imports.
tags: exports , imports , international , LNG (liquefied natural gas) , Mexico , natural gas , pipelines
Mexico Week: Crude oil moving north, products moving south characterizes U.S.-Mexico trade
This is the third in a series of five articles on U.S.-Mexico energy trade.
The United States and Mexico conduct a significant amount of trade in crude oil and petroleum products, with the United States primarily importing crude oil from Mexico and exporting refined petroleum products to Mexico. In 2012, the United States imported nearly one million barrels per day (bbl/d) of crude oil from Mexico, while exporting 600,000 bbl/d of petroleum products to Mexico (see chart above). The drivers for recent trends in crude oil and petroleum product trade between the two countries include rising crude oil production in the United States, falling Mexican crude oil production, and rising demand in Mexico for petroleum products such as gasoline and diesel fuel.
tags: crude oil , diesel , distillate fuel , exports , gasoline , imports , international , liquid fuels , Mexico , oil/petroleum , series
Mexico Week: Lower Mexican oil production contributes to lower crude oil exports to U.S.
This is the second in a series of five articles on U.S.-Mexico energy trade.
Republished May 15 to correct text.
Crude oil exports anchor the energy trade between Mexico and the United States. In 2012 Mexico was the world's ninth largest oil producer. The value of crude oil exports from Mexico to the United States reached $35.7 billion in 2012, having more than doubled since 2004. However, Mexico's crude oil production and exports to the United States have both fallen, with exports down to 0.97 million barrels per day (bbl/d) in 2012 from 1.48 million bbl/d in 2004. Last year was the first time since 1994 that annual exports of Mexican crude oil to the United States fell below 1 million bbl/d.
tags: exports , imports , international , liquid fuels , Mexico , oil/petroleum
Mexico Week: U.S. is Mexico’s primary energy trade partner amid shifting trade dynamics
Note: : U.S.-Mexico coal and electricity trading is so small that it is not shown on this chart. The categories included in the chart are based on classification codes in the U.S. International Trade Commission's Harmonized Tariff Schedule. The natural gas category is based on Harmonized Tariff Schedule code 27.11, which includes natural gas liquids such as propane, butanes, ethylene and propylene.
This is the first in a series of five articles on U.S.-Mexico energy trade.
Energy trade between Mexico and the United States in 2012 topped $65 billion and accounted for 13% of the $494 billion in overall trade between the countries. Crude oil and petroleum products account for most of the energy trade; in 2012, Mexico was the third-largest crude oil exporter to the United States, behind only Canada and Saudi Arabia, accounting for 11.4% of all U.S. crude oil imports.
tags: electricity , energy , exports , imports , international , liquid fuels , Mexico , natural gas , oil/petroleum , series
Heating oil futures contract now uses ultra-low sulfur diesel fuel
Note: Connecticut has passed legislation with the above requirements. However, the law requires New York, Massachusetts, and Rhode Island to have similar restrictions in place to trigger compliance, and as a result, no sulfur restrictions are yet enforced on heating oil. Specifications change on July 1 of the years shown, with the exception of Maine's requirements, which change on January 1.
Note: ppm denotes parts per million
Historically, standard futures contracts for heating oil allowed for delivery of product with sulfur content up to 2,000 parts per million (0.2%). Beginning with the May 1, 2013 contract, the New York Mercantile Exchange (Nymex) switched its specification for the heating oil futures contract to the ultra-low sulfur diesel specification (ULSD). The ULSD contract is a distillate that contains less than 15 parts per million (ppm) of sulfur, the same specification used for most diesel fuel. Many states in the Northeast require the switch over the next several years (see chart) to lower sulfur heating oil. Switching the contract to reference ULSD lets market participants more easily hedge their distillate investments.
tags: Connecticut , diesel , futures , heating oil , liquid fuels , Maine , Massachusetts , New Jersey , New York , oil/petroleum , prices , states
Low natural gas prices in 2012 reduced returns for some oil and gas producers
Note: Results based on data from 60 oil and natural gas producers that had at least 80% of their production in the United States and Canada along with production levels greater than 10,000 barrels of oil equivalent per day. Sampled companies accounted for nearly half of U.S. and Canadian oil and gas production in 2012.
Low natural gas prices contributed to reduced returns on equity (ROE), a measure of profitability, for oil and natural gas producers in 2012, according to EIA analysis. Producers with lower proportions of liquids in their total oil and gas production generally had lower ROE in 2012 compared to 2011, and compared to producers with higher proportions of liquids.
tags: liquid fuels , natural gas , oil/petroleum , production
Industrial sector drives increase in North Dakota electricity sales
Note: Rolling 12-month averages are the average of the preceding 12 months of data, to adjust for seasonality in the volume of electricity sales.
Increased oil and natural gas production in North Dakota has driven the state's growth in industrial demand for electricity. Rising economic activity and population in the state have also increased commercial and residential electricity use, although at a lower rate than in the industrial sector (see chart above). Crude oil production has increased significantly since early in 2007 because of the increased use of horizontal drilling and hydraulic fracturing in the Bakken Formation in the Williston Basin.
tags: commercial , electricity , industrial , liquid fuels , North Dakota , oil/petroleum , residential
President’s proposed budget calls for strategic review of government’s role in TVA
Republished May 8 to correct text and graph.
The president's recently proposed budget for fiscal year 2014 included a strategic review of the federal government's role in the Tennessee Valley Authority (TVA). TVA is a federally owned corporation that owns and operates 56 power plants in the Tennessee Valley Region, which stretches across parts of six states (Alabama, Georgia, Kentucky, Mississippi, North Carolina, and Tennessee). TVA's plants are primarily hydroelectric, natural gas, nuclear, and coal-fired facilities with a combined net summer capacity of more than 35 gigawatts (GW), about 3% of the total U.S. electricity capacity.
Price spread between regular and premium gasoline has changed over time
The difference between the U.S. average retail price for premium and regular gasoline—the premium for premium—reached 30 cents per gallon for the first time at the end of 2012, a level that has been maintained thus far in 2013. However, on a percentage basis, the price spread between premium grade and regular grade gasoline has actually remained relatively stable since mid-2009. With the exception of a spike in late 2008, the percentage spread fell fairly steadily from 17% in 2001 to a low of 6% in early 2008. The decline in the percentage price spread between premium grade and regular grade gasoline over this period coincides with increased blending of ethanol into the motor gasoline pool.
tags: ethanol , gasoline , liquid fuels , oil/petroleum , prices , refining
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