Liquid Fuels Market Module - NEMS Documentation

August 2025

Introduction
The Liquid Fuels Market Module (LFMM) is the component of the National Energy Modeling System (NEMS) that models U.S. petroleum refining activities, the marketing of petroleum products to consumption regions, imports and exports of petroleum liquids, the distribution of natural gas liquids from natural gas processing plants, and the production of renewable fuels¹ and non-petroleum fossil fuels. We developed the NEMS as the third in a series of computer-based energy-economy modeling systems. EIA and its predecessor, the Federal Energy Administration, have used NEMS to analyze and project U.S. domestic markets to provide 25–30 year projections and to analyze a broad range of energy issues at both national and regional levels. Although the NEMS was first used in 1992, the model is updated each year; updates in individual modules range from simple historical data updates to completely replacing submodules. The LFMM was an entirely new model we incorporated into the NEMS for the Annual Energy Outlook 2013, replacing the Petroleum Market Module (PMM).

Documentation purpose and scope
This report provides a reference document for model analysts, users, and the public that defines the objectives of the Liquid Fuels Market Module (LFMM) in the NEMS. This report also fulfills EIA’s legal obligation to provide adequate documentation in support of our models under Public Law 93-275, Federal Energy Administration Act of 1974, Section 57(B)(1) (as amended by Public Law 94-385, Energy Conservation and Production Act).

In this report, we:

• Describe LFMM’s basic design
• Provide details on the methodology employed
• Detail the model inputs, outputs, and key assumptions

See full report

Notes and sources
¹Includes ethanol, biomass-based diesel, and cellulosic biofuels