Low U.S. gasoline demand is making gasoline less profitable, reducing crack spreads

Low gasoline demand in combination with the seasonal switch to winter-grade gasoline has made gasoline less profitable to produce, reducing the difference between gasoline blendstock and crude oil prices to multiyear lows in October 2023. More »

Drought at the Panama Canal delays energy shipments, increasing shipping costs

A drought is limiting ship traffic through the Panama Canal. The resulting delays caused shipping rates through the Panama Canal for Very Large Gas Carriers (VLGCs) to reach record highs, which increased the cost of shipping liquefied petroleum gas (LPG) from the United States. More »

Solar and wind power curtailments are rising in California

The California Independent System Operator (CAISO), the grid operator for most of the state, is increasingly curtailing solar- and wind-powered electricity generation as it faces the rapid growth of wind and solar power in California. More »

EIA forecasts winter U.S. household expenditures higher on fuel oil and lower on propane

We forecast that U.S. households that heat primarily with heating oil will spend more this winter on heating compared with last winter, but households heating primarily with propane will spend less than last winter, according to our 2023 Winter Fuels Outlook (WFO) supplement to our October Short-Term Energy Outlook (STEO). More »

The number of operating U.S. natural gas rigs has declined 24% since start of 2023

On October 20, the Baker Hughes Company reported 118 natural gas-directed rigs were active in the United States, a decrease of 38 rigs since the start of 2023. The decline in active drilling rigs coincides with lower natural gas prices for most of 2023, compared with relatively high natural gas prices for most of 2022. More »

Market prices for Renewable Fuel Standard credits are falling

The prices of ethanol (D6) and biomass-based diesel (D4) renewable identification number (RIN) credits—the compliance mechanism used for the Renewable Fuel Standard (RFS) program administered by the U.S. Environmental Protection Agency (EPA)—each fell by more than one third between September 1 and October 16, our data shows. As of October 16, biomass-based diesel RINs (D4 RINs) were $0.90, and ethanol RINs (D6 RINs) were $0.89; both prices were more than 40 cents lower than on September 1. D4 RIN prices have not been this low since 2020, when EPA granted several small refinery exemptions that reduced fuel blending requirements and RIN prices. More »