Refinery earnings were lower in second-quarter 2016 compared with the same time last year and are converging among different locations globally. Lower crack spreads (the price difference between crude oil and petroleum products) contributed to declining profits for some refiners compared with 2015. Also, North American refiners—which for years were consistently more profitablethan other refiners—were less profitable than European refiners for the second consecutive quarter. Changes in North American and European crude oil price differentials are likely contributing to the convergence in profits.
Recently released second-quarter statements from 27 companies show that 21 experienced a year-over-year decline in 2016 in refining profits, as measured by earnings per barrel processed. The decline in earnings was commensurate with the decline in crack spreads in the second quarter. In addition to changes in crack spreads, which serve as an indicator of refinery profits, earnings per barrel account for other costs, such as transportation costs and other operating expenses. Also, each refiner uses different crude oil blends and produces different yields of refined products, which will show differences among refiners in their per barrel earnings.
Analyzing the group of companies by primary refining region shows refinery earnings converging over the past year (Figure 1). The group of North American refiners consist of 14 companies with operations mainly in the United States and Canada, while seven companies constitute the European group and six the Global group, so-named because its companies’ operations are geographically diversified and affected by crude oil and petroleum product prices in many regions of the world. Companies in North America and Europe, on the other hand, may be more subject to differences in local markets.
One factor contributing to a convergence in refinery profits is an increase in the U.S. average refiner crude oil acquisition cost compared with global refiner acquisitions costs. Because crude oil and petroleum product prices are the two largest factors that affect a refiner’s profits, changes in the cost of crude oil acquisition can have a significant effect on profitability. North American refiners enjoyed a large discount to global crude oil prices for several years, measured by the difference between the U.S. composite refiner acquisition cost and North Sea Brent crude oil prices (Figure 2). With price discounts often in the double digits, North American refiners were consistently more profitable than global and European refiners, which on average paid higher prices for crude oil. Since the third quarter of 2015, the discount has not widened beyond $4.50 per barrel (b), reducing some U.S. refiners’ competitive advantage on costs.
Many of the factors that contributed to the wide spread were driven by rapid increases in U.S. and Canadian crude oil production that were not met with increases in infrastructure to allow the oil to be moved to refining centers inexpensively. Crude oil producers typically received a price lower than global prices for similar quality crude oils, giving some U.S. refiners a cost advantage. These factors began to reverse in 2014 and 2015. New pipeline infrastructure increased takeaway capacity to refining areas, such as the BridgeTex and Cactus pipelines in West Texas and Flanagan South in the Midwest. U.S. crude oil production declines, which began on a year-over-year basis in December 2015, also contributed to a comparatively tighter crude oil market in North America.
In the European market, refiners may be achieving increased efficiency through consolidating operations. The European companies in this analysis reduced distillation capacity 248,000 barrels per day in 2015, the fourth consecutive year of reductions. In addition, the crude oil market in Europe is comparatively looser than in North America, as Russian, Iranian, and Iraqi crude oil production has increased. Some refiners may be receiving lower costs for crude oil than other refiners as oil producers compete to maintain market share, which increases refinery profits. For example, the discount of Mediterranean Urals—a Russian crude oil many inland European refiners process—averaged greater than $2.00/b for most of 2016, which may have contributed to higher profits in recent quarters (Figure 3).
Crack spreads are lower in the third quarter and if the smaller spreads continue, it suggests third-quarter refinery profits will be lower globally. Absent meaningful changes in geographic crude oil and petroleum product price differentials, however, refinery profits will likely display smaller variability across different locations.
U.S. gasoline and diesel fuel prices increase
The U.S. average regular gasoline retail price was $2.19 per gallon on August 22, an increase of four cents from the previous week, but down 44 cents from the same time last year. The Midwest and East Coast prices each increased five cents to $2.17 per gallon and $2.13 per gallon, respectively. The West Coast price increased four cents to $2.57 per gallon, the Gulf Coast price rose three cents to $1.96 per gallon, and the Rocky Mountain price increased by two cents to $2.23 per gallon.
The U.S. average diesel fuel price rose six cents to $2.37 per gallon, down 19 cents from the same time last year. The Midwest and Gulf Coast prices each rose seven cents to $2.34 per gallon and $2.25 per gallon, respectively. The East Coast price rose five cents to $2.37 per gallon, while the West Coast and Rocky Mountain prices each increased four cents to $2.62 per gallon and $2.44 per gallon, respectively.
Propane inventories gain
U.S. propane stocks increased by 2.4 million barrels last week to 96.1 million barrels as of August 19, 2016, 0.4 million barrels (0.4%) higher than a year ago. Gulf Coast, East Coast, Midwest, and Rocky Mountain/West Coast inventories increased by 1.6 million barrels, 0.5 million barrels, 0.2 million barrels, and 0.1 million barrels, respectively. Propylene non-fuel-use inventories represented 2.3% of total propane inventories.
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Student guardian visa subclass 590 allows you to stay in Australia as a guardian or custodian or relative of an overseas student who is pursuing an education course in Australia. With 590 student guardian visa, You can stay with your child to take care of him/her in Australia until the course complete. Your child age must below then 18th years old before applying for a student guardian visa 590. If you're a relative then you can stay with the child by submitting written permission of a child’s caretakers like a guardian or grandparents. If your child is older then eighteen years then to apply for visa subclass 590 you need to show that you have special emergency circumstances. You can apply for a 590 student guardian visa outside from Australia and acquire enrollment in alternative courses up to three months with a 590 visa. You will be authorized to take care more then one child if you have. You can do the other study or coach just for 3 months with this Student Guardian Visa Subclass 590.
Step By Step Process About 590 Visa
1.Before Applying for Visa
Meet Eligibility Criteria
• You must be a parent or grandparents or relative of a non-Australian child who is below 18th of age.
• If you want to apply from inside of Australia then you need to hold a substantive visa except for domestic worker, temporary work visa, transit visa, visitor visa, etc.
• If your another child who is below 18th and not coming to Australia with you then you need to give evidence that you have made welfare arrangement for the child.
• You have to account for your all healthcare expenses so make sure that medical insurance can only reduce your expenses.
• Your past immigration history must be credible like you must not have any visa cancellation history.
• Your intention should be genuine at the time of applying for student guardian visa 590 and it should be not against Australian culture and policies.
• If your family members are also applying with you then they also need to meet health policies of the Australian government
• Only a parent or grandparents or custodian or step parents of an overseas student visa 500 holder can apply for this student guardian visa subclass 590.
• If parents are not present due to any reason for looking after the visa subclass 500 holder student then any relative can apply for this 590 student guardian visa.
• You must be a guardian of an international student who must be below 18th of age except for exceptional circumstances.
• You have to give assurance to immigration authorities that you will be able to provide welfare.
• Your age must be above 21 years old before going to apply for a student guardian visa 590.
• You have to pay back any type of debt to the Australian government if you have.
• If you have another child aged 6 years old then you can bring him/her to Australia but if your child if older then 6 years then you need to show emergency condition to bring him/her to Australia.
•Provide character certificate and other national identities.
•Submit bank documents and salary slips to prove that you will be enough capable to give welfare to the student.
•Provide guardianship documents to prove your credibility to that child.
•Translate your non-English documents into English.
•Submit legal student guardianship form.
•Provide dependent under 6 documents if you bring your child who is under 6 years of age.
2. Processing Time And Cost Of This Visa
Visa subclass 590 cost starts from AUD 560. This visa 590 may proceed in 2 to 4 months. But in case you forget to submit any documents then you processing time of visa can be increased. Your visa application processing time can be increased if you provide incomplete information.
3. Apply For The Visa
You need to apply online for the 590 student guardian visa 6 weeks before the student’s course starts. At the time applying for the visa, you have to prove that you are genuine and legal applicant by submitting legal documents. If you submit illegal information to immigration authorities then they have the authority to cancel your visa application immediately. You and your relative which is listed in visa application will not able to get a visa for the next 10 years in case of any fraud by you. You should contact an experienced Immigration Agent Adelaide.
4. Conditions After You Have Applied For The Visa
• You are not allowed to do any type of work in Australia.
• You can study only for 3 months.
• With visa subclass 590 you can’t apply for another visa
• At the time of leaving Australia, you must have brought the student to your country.
• If you have another child who is below 6th years of age then you can bring him/her to Australia.
Get The Direction To Migration Agent Adelaide - ISA Migrations and Education Consultants.
U.S. petroleum and natural gas production increased by 16% and by 12%, respectively, in 2018, and these totals combined established a new production record. The United States surpassed Russia in 2011 to become the world's largest producer of natural gas and surpassed Saudi Arabia in 2018 to become the world's largest producer of petroleum. Last year’s increase in the United States was one of the largest absolute petroleum and natural gas production increases from a single country in history.
For the United States and Russia, petroleum and natural gas production is almost evenly split; Saudi Arabia's production heavily favors petroleum. Petroleum production is composed of several types of liquid fuels, including crude oil and lease condensate, natural gas plant liquids (NGPLs), and bitumen. The United States produced 28.7 quadrillion British thermal units (quads) of petroleum in 2018, which was composed of 80% crude oil and condensate and 20% NGPLs.
Source: U.S. Energy Information Administration, based on International Energy Statistics
Note: Petroleum includes crude oil, condensate, and natural gas plant liquids.
U.S. crude oil production increased by 17% in 2018, setting a new record of nearly 11.0 million barrels per day (b/d), equivalent to 22.8 quadrillion British thermal units (Btu) in energy terms. Production in the Permian region of western Texas and eastern New Mexico contributed to most of the growth in U.S. crude oil production. The United States also produced 4.3 million b/d of NGPLs in 2018, equivalent to 5.8 quadrillion Btu. U.S. NGPL production has more than doubled since 2008, when the market for NGPLs began to expand.
U.S. dry natural gas production increased by 12% in 2018 to 28.5 billion cubic feet per day (Bcf/d), or 31.5 quadrillion Btu, reaching a new record high for the second year in a row. Ongoing growth in liquefied natural gas export capacity and the expanded ability to reach new markets have supported increases in U.S. natural gas production.
Russia’s crude oil and natural gas production also reached record levels in 2018, encouraged by increasing global demand. Russia exports most of the crude oil that it produces to European countries and to China. Since 2016, nearly 60% of Russia’s crude oil exports have gone to European member countries in the Organization for Economic Cooperation and Development (OECD). Russia’s crude oil is also an important source of supply to China and neighboring countries.
Russia’s natural gas production increased by 7% in 2018, which exceeded the growth in exports. The Yamal liquefied natural gas (LNG) export facility, which loaded its first cargo in December 2017, can liquefy more than 16 million tons of natural gas annually and accounts for almost all of the recent growth in Russia’s LNG exports. Since 2000, more than 80% of Russia’s natural gas exports have been sent to Europe.
Saudi Arabia’s annual average crude oil production increased slightly in 2018, but it remained lower than in 2016, when Saudi Arabia’s crude oil output reached a record high. Saudi Arabia’s crude oil production reached an all-time monthly high in November 2018 before the December 2018 agreement by the Organization of the Petroleum Exporting Countries (OPEC) to extend production cuts.
In addition to exporting and refining crude oil, Saudi Arabia consumes crude oil directly for electricity generation, which makes Saudi Arabian crude oil consumption highest in the summer when electricity demand for space cooling is relatively high. Since 2016, Saudi Arabia’s direct crude oil burn for electric power generation has decreased for a number of reasons, including demand reductions from a partial withdraw of power subsidies, greater use of residual fuel oil, and increased availability of domestic natural gas.
Crude oil exports account for about 60% of Saudi Arabia’s total economic output. China, along with Japan, South Korea, Taiwan, and the United States remain critical markets for Saudi Arabia’s petroleum exports.
Headline crude prices for the week beginning 12 August 2019 – Brent: US$58/b; WTI: US$54/b
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