ALEXANDRIA, Va.—The death of liquid fuels is greatly exaggerated—that’s the conclusion of Stephen Jones, global head of oil products for Argus Media on this week’s Convenience Matters podcast, “Are Liquid Fuels Dead?”
“Overall, the health in the refining sector has been pretty strong,” said Jones. “The U.S. Gulf coast [has been strong] in particular because of cheap operating costs. … That export market can’t be understated, … which has been on the rise.”
There has been a long-term global change in the transportation sector. “The U.S. refinery industry has been extraordinarily adaptable to changing market conditions, as well as to the regulatory environment,” Jones said. He sees the U.S. refiners as being willing to make adjustments to meet these changes head on.
“Renewable fuel requirements are growing both in terms of regulation and cost-competitiveness in the outlook. There’s probably not a single U.S. refiner who’s not already advancing plans to invest in co-processing renewable feed stocks directly in the refining system itself,” Jones pointed out.
“The use of cars continues to increase despite the efficiency improvements,” Jones said. “When you look at the actual miles driven, … the need for mobility continues to rise. You have some threat of market share with [electric vehicles] but it’s small and [in] its early years. It’s decades away from being a large swath of taking away liquid fuels market share.”
Each week a new Convenience Matters episode is released. With more than 200 episodes to choose from, the podcast can be heard on Apple Podcasts, Spotify, Google Play and other podcast apps and YouTube and at www.conveniencematters.com. Episodes have been downloaded more than 130,000 times by listeners around the world.