Skip to main content

Biofuels displacing petroleum-based distillate fuel oil on US West Coast

Published by , Editorial Assistant
Hydrocarbon Engineering,


Consumption of distillate fuel oil on the US West Coast, as measured by product supplied, decreased to its lowest level since 2002 in 2022, and continues its decline in 2023. The primary cause for the decline is the replacing of petroleum diesel with biofuels, namely renewable diesel, which has gained a larger market share of the region’s diesel pool as clean fuel programmes incentivise biofuels.

Renewable diesel and biodiesel are the two biomass-based diesel fuels that can be used in place of petroleum distillate. Renewable diesel is a transportation and heating fuel that is chemically equivalent to petroleum-based distillate fuel but is produced using fats, oils or greases rather than petroleum. Renewable diesel is considered a fungible, drop-in replacement for petroleum distillate, meaning that it can be used in diesel engines in any concentration. Biodiesel has the same uses as renewable diesel and is made with the same feedstocks, but it is typically blended with petroleum distillate at concentrations of 20% or less for vehicle consumption because of some chemical differences from petroleum distillate. Regardless of whether renewable diesel or biodiesel are blended with petroleum distillate or consumed directly, they generally serve the same end uses and can displace volumes of petroleum distillate.

West Coast distillate fuel oil consumption decreased in 2022, and is on track to be even lower in 2023. In five months in 2022, distillate fuel consumption in the region dropped below the 10-year (2012 – 2021) minimums. In the three months of 2023 published in the EIA's Petroleum Supply Monthly (PSM), consumption for two months was below 10-year lows, and the average monthly consumption was the lowest for those three months since 2000.

This trend is unique to the West Coast, where most of the US’ new renewable diesel supply is consumed. Data from the California Air Resources Board and the US Department of Energy’s Alternative Fueling Station Locator suggest that most of this fuel is consumed in California. EIA does not estimate regional consumption of renewable diesel.

In the rest of the US, distillate fuel oil consumption has been near five-year (2017 – 2021) averages and has not shown a noticeable trend, aside from returning to pre-pandemic levels. In March 2023, distillate fuel oil consumption in the US, excluding the West Coast, climbed above its 10-year maximum. This national trend contrasts with that in the West Coast, where consumption dropped below its 10-year minimum. The discrepancy in distillate fuel oil consumption between the West Coast and the rest of the US demonstrates the general effect of biofuel consumption on distillate fuel oil consumption, and indicates that most of the renewable diesel produced in the US is consumed on the West Coast.

Distillate fuel oil consumption generally decreases with increased biofuel consumption because biofuels displace petroleum diesel fuel, and the EIA captures only a portion of biofuel consumption in its published distillate fuel oil consumption statistics. Since 2021, distillate fuel oil consumption includes three subitems: petroleum diesel fuel; renewable diesel refinery and blender net inputs; and biodiesel refinery and blender net inputs.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/15062023/biofuels-displacing-petroleum-based-distillate-fuel-oil-on-us-west-coast/

You might also like

Worley to support Bayou Bend CCS project

Worley has been selected to design and evaluate carbon dioxide gathering, handling and sequestration facilities for the Bayou Bend CCS LLC joint venture.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Biofuel news