July 23, 2024

Fuel Market Report: July 14th – July 20th, 2024 https://staroilco.net/wp-content/uploads/2023/12/trailer-trucks-driving-road-surrounded-by-beautiful-green-trees-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 23, 2024 July 23, 2024

Fuel Market Report: July 14th – July 20th, 2024

Oregon Fuel Price Variance

Fuel Market News

Name: Star Oilco
Address: 232 NE Middlefield Rd., Portland, OR, 97211, United States
Telephone: 503-283-1256
Price range: $$

Fuel prices fell this past week across the board. Rack averages fell $0.13 for B5 and $0.16 while rack averages for E10 fell $0.04. Presses have continued to fall over the last 3 weeks. This is surprising as crude oil pieces have been relatively low, and fell to $76/barrel over the weekend. The lack of high summer fuel prices has been great for drivers and summer travelers but brings into question why demand is so low.

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

City of Portland began their fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

Important Note: Per the City Of Portland, “Distributors in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they distribute beginning on May 15, 2024. All diesel fuel distributed to retail stations, non-retail dealers, or wholesale purchaser-consumers must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on May 15, 2026, and 99% on May 15, 2030”.

Reasons For Price Variance:

Crude oil is trading below $80 for the first time in nine weeks, at a current price of $76.81/barrel, $4.19 lower than last week, as oil prices trended downward, for the third time in 4 weeks. This is the biggest slump in 9 weeks as oil prices slipped over $4 this past week.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $76.81/barrel compared to $81.00/barrel, last week and $83 a year ago.

It’s essential to recognize that fuel prices result from a complex interplay of the factors mentioned above and other factors regionally. Additionally, prices may vary by specific regions within Oregon and Washington. For the most precise and up-to-date information on fuel prices and the causes for these price changes within your area, use the links below for AAA & GasBuddy.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

● https://gasprices.aaa.com/?state=OR

● https://www.gasbuddy.com/charts

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July 23, 2024

The Future of Diesel Fuel https://staroilco.net/wp-content/uploads/2024/06/Untitled-design-45.png 940 788 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 23, 2024 July 23, 2024

The Future of Diesel Fuel

Retail Diesel Dispenser Example — Retail Diesel Pumps with a variety of blends of diesel. Biodiesel, Renewable Diesel, and Fossil Diesel blends shown in Portland, Oregon.

Diesel Fuel In Oregon and Washington

Star Oilco has been getting questions on the changes of diesel in Portland, Oregon. If you have not noticed, many diesel pumps at retail gas stations and cardlock have seen changing stickers on the face of the fuel pumps. As of July 1st, 2024 the City of Portland requires a minimum 15% biofuel content of all diesel sold. This policy is called the Portland Renewable Fuel Standard.

This has caused quite a few changes in what fuel pumps have for fuel. Diesel fuel buyers are noticing the bright yellow color of B20 biodiesel, the water clear color of Renewable Diesel or a a mix of several fuels tinting the color of their diesel. This trend is bigger than just Portland.

Today on the west coast there are a variety of product label stickers you will see on diesel pumps. These show the variety of diesel fuel specifications that are being sold to diesel vehicles today. Blends of petroleum ultra low sulfur diesel, R99 (99%) renewable diesel, and B99 (99%) Biodiesel are combined to meet the market needs of the diesel we all buy.

This change is because of a combination of pure market forces, government rules and local decisions by fuel haulers. Today’s diesel not only has a commodity market for the fuel it also has a market for CO2 credit value and a cap of total petroleum diesel fuel that can be sold into a west coast state with a “Cap and Invest” program requiring blends of low CO2 biofuels, the liquid fuels sold for vehicles.

Add on top of these market forces, advances in technology used to make the liquid diesel fuel. The diesel arriving at truck stops, gas stations, cardlock or out of a hose from a bulk truck has been changing and it’s often in good ways. Knowing how can be helpful in navigating why diesel may cost one price or another and may have a need or maintenance that another fuel does not.

THE RISE OF RENEWABLE DIESEL

Renewable diesel is a synthetic diesel fuel made from the same feedstock as biodiesel, but the finished product is hydrocarbon diesel. Though it is a biofuel, it is also diesel. For fuel regulation they refer to it (as well as biodiesel) as “Biomass Based Diesel” for labeling at the fuel pump.

There have been billions of plant capacity brought online for renewable diesel. During the COVID collapse of fuel prices a number of petroleum refineries shut down, then upgraded their technology to make hydrocarbon diesel fuels out of the very biobased fats, oils, and greases biodiesel is made from. These refineries use hydrotreating technology just like they do with a crude petroleum to make an actual hydrocarbon diesel molecule. With this technology adoption to make diesel and jet fuels from vegetable oils and animal fats billions of gallons of low CO2 diesel fuels are coming on the market and governments are requiring it’s use, such as Portland’s Renewable Fuel Standard.

Renewable Diesel Consumption it the US Source: Alternative Fuels Data Center

THE AVAILABILITY OF BIODIESEL

The US makes billions of gallons of biodiesel. A fuel that’s quality and performance continues to improve. If you are not a fan of biodiesel in your fuel thinking strategically about the fuel will likely benefit your fleet operation. The big concern with diesel fuel in a ultra low sulfur world is water and dirt suspended in the fuel affecting the performance of diesel emission systems. With clean and drier quality specifications of B99 blend stocks today versus a decade ago the use of this fuel has grown substantially especially in the truck stop market.

When crude petroleum prices are high and therefore refined diesel prices are equally as high biodiesel is often an extremely competitive fuel. If a large seller of diesel (including petroleum refiners) can pick up pennies per gallons on millions of gallons sold they will do so. Therefore Biodiesel is often seen in diesel in small blends even if you do not see a label on retail pump. For blends above 5% a label is required for retail fuel sales. RTHWEST?

R99 Renewable Diesel fuel dispenser label

Biodiesel Blend Percentage label for retail diesel dispenser

Above are a variety of labels used to denote what fuel blend is coming out of a retail diesel dispenser. Feel free to call Star Oilco at 503-283-1256 if this confuses you and you want it explained. We would be glad to do so.

These labels can be found together often at one pump. All state and Federal standards require ultra low sulfur diesel for any on-road diesel sale. The Federal standards also adopted by the states require a disclosure at the fuel pump if a blend is above 5% biodiesel. The max allowable blend of biodiesel for diesel truck manufactures is a 20% blend. If a truck dealership says that you cannot blend biodiesel up to 20% they need to take that up with the Federal Government because they need to support it. This is why the label shows a blend may contain between 5% and 20% biodiesel content.

Renewable diesel is a hydrocarbon diesel.

It is diesel meeting the ASTM D975 specification for diesel.

Retailers selling blends of R99 in their fuel do not need to label it given this. They still do label it given the benefits of the fuel’s performance and that customers are seeking that fuel.

Contact Us Today To Schedule Your Next Bulk Fuel Delivery

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Many retail places will have stacked labels showing they may be blending 5% to 20% biodiesel as well as may be adding R99 Renewable Diesel to the fuel as market conditions dictate it is the more cost competitive fuel. When seeing a label like this it can usually be assumed they are blending a R80 (80% Renewable Diesel) and a B20 (20% Biodiesel) blend of fuel. This blend is actually believed by some to be a higher performing fuel seeing better performance that a R99 or B20 fossil fuel blend.

Fossil fuel diesels are being replaced or blended with biomass based diesels. Be it Renewable Diesel or Biodiesel. These blends are driven by more than one industry requirements, government rules, or other market forces. One of these being Portland’s banned on petroleum diesel through the Renewable Fuel Standard (RFS). This is resulting in an increase of low-carbon biofuel blends that will ultimately move to a mix of 99% renewable fuel requirement by 2030.

Renewable Diesel and Biodiesel Blend fuel dispenser label.

The big drivers are industry specification for fuels (both labeling as well as chemical characteristics), state rules on selling these fuels, their quality assurance as well as CO2 content, and of course the market forces. Market forces being the supply and demand availability of fuel needed to meet customers. Less fuel available to sell means higher prices for customers.

A decade ago the market for diesel was far simpler. Though you had biofuels and some blend mandates basically you had a diesel specification accepted and the daily price as tracked by a lighted retailers sign, a wholesale market average or spot buying by some customers. Today this market is far more complicated by government regulation on the west coast. There are three big programs at state levels impacting this.

State Fuel Rules cause a unique need for one state or another. Whereas twenty years ago if Oregon or Washington fuel was selling for more than the Gulf Coast you might see brokers bring fuel into the region then driving down high prices. With the creation of various complex and unique rules on diesel, imports of fuel to these low CO2 fuel states has dropped. The amount of people moving product into west coast states has dropped. The big rules causing this are the Cap and Invest programs of the West Coast states, the Low CO2 Fuel Standards of the states, and the fuel blend mandates of various jurisdictions of these states. For instance California now requires all off-road diesels but 99% renewable diesel. Portland, Oregon also has a CO2 requirement and minimum 15% blend of biomass based diesel on all fuel sold in the state.

WHAT ARE THE DIESEL FUELS AND THEIR SPECIFICATIONS

Petroleum Diesel:
ASTM D975 Specification.

The ASTM D975 is a series of tests used to maintain consistent industry standard product performance for diesel fuel. It includes among several tests cloud point, cold filter plug point (CFPP), several masurements of diesel fuel operability performance, intrained water content, sediment, carbon residue, ash, distillation, viscosity, sulfur, copper corrosion, cetane number, cetane index, aromaticity, and conductivity.

Renewable Diesel:
ASTM D975 Specification.

Renewable Diesel is following the same series of tests as petroleum refined diesel fuels. It is the same ASTM D975 specification. Though Renewable Diesel has some different properties that exceed the ASTM specification of diesel. Renewable Diesel is highly prized as a fuel because it typically is a cleaner and drier diesel fuel than petroleum diesel. This being seen by the tests on sediment and water content in a parts per million level. Renewable Diesel content in diesel fuel can also be tested for looking for a C14 molecule (the chain typically created in a Hydrotreated Diesel process from fats, oils and greases.

Biodiesel (Methyl Esther):
ASTM D6751 Specification.

The ASTM for Biodiesel tests a mono-alkyl esters of long chain fatty acids derived from vegetable oils and animal fats. The testing for quality assurance covers an analysis for flash point, methanol, water and sediment, kinematic viscosity, sulfated ash, oxidation stability, sulfur, copper strip corrosion, cetane number, cloud point, acid number, carbon residue, total and free glycerin, phosphorus, reduce pressure distillation temperature, atmospheric equivalent temperature, combined calcium and magnesium, and combined sodium and magnesium.

For more on Biodiesel Use and Handling the National Renewable Energy Laboratory has a great book on the subject.

THE HISTORY OF DIESEL FUEL SPECIFICATIONS IN THE UNITED STATES

In the 1990’s the US EPA passed rules that demanded a phase out of sulfur in diesel fuel. The presence of sulfur was very good for the fuel’s storage stability as well as fuel lubricity, but was horrible for air quality. Additionally the big smog contributor was NOx (nitrous oxide) which was one of the EPA’s reason’s for pulling sulfur out of diesel. For the EPA to get engine manufacturers to treat the NOx emissions at the tailpipe they needed all the sulfur gone (ultra low sulfur diesel) for modern diesel emission systems to be able to eliminate NOx as well as a host of other pollutants including particulates.

The story of changing diesel fuel standards in the US under the EPA is one of removing sulfur from our diesel fuel. In 1996 the fuel refiners and sellers of diesel had to move the sulfur content of the fuel sold for on-road purposes to below a 500 parts per million standard. Commonly referred to as Low Sulfur Diesel fuel. In 2006 the standard moved to a maximum of 15 parts per million of sulfur for all on road fuels.

In 2006 while the sulfur content of fuel was dropping the City of Portland released the first mandated blend of biodiesel content. This being a 5% biodiesel blend. The next year, the State of Oregon followed with its own Renewable Fuel Standard requiring this throughout the state. This began the expectation of biodiesel in most diesel fuel in the Portland, Oregon area. Washington also passed a similar policy for blending biodiesel but the enforcement and need for the fuel is less specific at Washington fuel pumps.

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July 16, 2024

Fuel Market Report: July 7th – July 13th, 2024 https://staroilco.net/wp-content/uploads/2023/12/trailer-trucks-driving-road-surrounded-by-beautiful-green-trees-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 16, 2024 July 16, 2024

Fuel Market Report: July 7th – July 13th, 2024

Fuel Market News

The market experienced a mix of price fluctuation this week, as rack averages dropped but retail didn’t budge much. E10 dropped $0.05, B5 dropped $0.10 and B20 dropped $0.02. All the while retail averages fell $0.03. Fuel prices have trended downwards for the past few weeks and are still relatively low compared to prices seen earlier in the year. Demand for B20 has continued to rise with the Portland RFS. All B5 blends within the city of Portland are only dyed blends for off-road usage. Overall the summer has been pretty calm for price jumps thus far.

The City of Portland began its fuel blending requirements for all diesel blends to increase to the minimum of a B15 blend. This will lead to most stations using B20 biodiesel or R99 Renewable diesel if allocations allow for it.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

Reasons For Price Variance:

Crude oil is trading above $80 for the fourth time in eight weeks, at a current price of $81.00/barrel, $1.07 lower than last week, as oil prices trended downward, for the second time in 4 weeks.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $81.00 per barrel compared to $82.07/barrel, last week and $85 a year ago.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

● https://gasprices.aaa.com/?state=OR

● https://www.gasbuddy.com/charts

Join the Fuel Market Report newsletter for your weekly fill of updates!

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July 13, 2024

What Is The Renewable Fuel Standard In Portland, Oregon? https://staroilco.net/wp-content/uploads/2024/07/zack-spear-ZB_Ns0hVZNk-unsplash-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 13, 2024 July 13, 2024

What Is The Renewable Fuel Standard In Portland, Oregon?

Did you hear about the time Portland banned fossil fuel diesel?

Portland is making a big move to provide cleaner air and reduce greenhouse gas emissions. Portland has implemented what’s called the Renewable Fuel Standard (RFS) beginning its first phase on May 15th, 2024. The RFS policy in Portland mandates that there has to be an increase of use of low-carbon biofuels in diesel within city limits of Portland. This is part of the ultimate Climate Emergency plan. This RFS mandate was first implemented in 2006 as a B5 (5%) Biodiesel blend mandate with the goal of mandating a 20% blend. The RFS is the first of its kind not only in Oregon but in the entire United States. Portland’s reputation as a leader in environmental sustainability efforts continues.

Portland’s Phases To Implement Almost 100% Renewable Diesel

What makes Portland’s mandate unique is the requirement that the biofuels have a CO2 value so low it bars most American made biodiesels. The blending requirement starts at 15% in 2024, and then it will steadily increase to 50% by 2026 and will reach 99% by 2030. This schedule demonstrates how Portland’s low-carbon ambition is present to transition away from fossil fuels and promote alternative energy sources.

This policy is expected to reduce air pollution and carbon emissions. It will also create new markets for biofuels, which will lead to increased economic opportunities. This will ultimately help the city become a more sustainable and environmentally friendly place to live as Portland has taken the lead in striving for sustainability over the years.

The policy will also help create jobs in the biofuel industry and provide opportunities for businesses to switch to renewable energy sources. It will also help reduce the city’s dependence on fossil fuels and protect the environment for future generations.

Want to learn more about meeting Portland’s requirements for the Renewable Fuel Standard mandate?

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Focus on Lower-Emission Biofuels

Uniquely, Portland’s RFS goes beyond just the biofuel blend. It also sets a strict carbon intensity (CI) standard for the biofuels themselves. This ensures the biodiesels used have a significantly lower carbon footprint compared to traditional options. Biodiesels produced domestically often fall short of this CI requirement, prompting many suppliers to look to renewable diesel sources. This focus on biofuels with a lower lifecycle carbon footprint makes Portland’s RFS even more impactful in reducing greenhouse gas emissions.

Exemptions and Implementation Details

The initial phase of the RFS targets on-road diesel sales. This applies to diesel purchased at gas stations, by mobile fueling companies, and for use in large stationary tanks. However, the long-term goal includes all diesel use within the city. Some temporary exemptions apply to off-road diesel uses such as heating oil, generator fuel, aircraft fuels, watercraft fuels, and other dyed fuel users. One local truck stop, Jubitz Truckstop, was granted a temporary exemption. This is likely due to concerns about disrupting critical transportation operations. Daimler (the manufacturer of Freightliner and Western Star trucks) has a research facility in Portland. Daimler was also granted an exemption to meet their specific fuel needs for testing purposes.

The RFS enforces compliance through fuel sampling and requires documentation proving the fuel meets the minimum biofuel content and CI standards. Businesses that purchase diesel need to be able to show their compliance through bills of lading (BOLs) or similar records from their fuel provider, like Star Oilco. If a business does not comply and provide this documentation, it can result in pretty hefty fines. First offenses can be a fine of $10,000 per day. Repeat offenders will end up facing even bigger penalties of up to $15,000 per day. These fines can really show the impact of how serious Portland is taking this initiative.

Impact on Businesses and Consumers

While residential consumers who don’t purchase diesel directly are not directly impacted, businesses purchasing diesel, especially in bulk, will need to adapt to the new regulations. This may involve acquiring documentation from fuel suppliers or entering into contracts guaranteeing compliant fuel blends. Wholesale fuel distributors, who sometimes purchase from multiple vendors and blend fuel mid-route, may face additional challenges in tracking the biofuel content and CI of their product. However, as the program matures, the industry is expected to adapt and streamline these compliance procedures.

Contact Us Today To Discuss What This Means For Your Business

A Step Forward for Cleaner Transportation

Portland’s ambitious RFS sets a new expectation for sustainable transportation. Promoting low-carbon biofuels allows Portland to aim to significantly reduce its reliance on fossil fuels and be able to contribute to cleaner air for its residents. The RFS program will be able to serve as a model for other cities that are looking at implementing similar initiatives. Great job Portland for paving the way to a sustainable future for other cities! Although challenges will remain, as businesses adapt to this new norm, Portland’s RFS represents a significant step forward in creating a more sustainable transportation sector.

The RFS program is an important step in the fight towards sustainability and lower carbon fuels. It sends a clear message that cities are willing to take action to reduce emissions and protect the environment. We anticipate that other cities will follow Portland’s lead and create similar initiatives. This will have a significant impact in reducing emissions and helping to protect the environment.

It is a positive step towards a more sustainable future. Alternative fuels have become more and more readily available. Investing in alternative fuels and reducing carbon emissions is essential for protecting the planet for future generations. Governments should prioritize investing in renewable energy sources and incentivize communities to switch to alternative fuel solutions.

Thank you for choosing Star Oilco as your preferred fuel provider in Portland and Vancouver, Washington. Give us a call to discuss how the RFS mandate can affect your business and one of our team members would be happy to discuss this with you.

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July 9, 2024

Fuel Market Report: June 30th – July 6th, 2024 https://staroilco.net/wp-content/uploads/2023/12/trailer-trucks-driving-road-surrounded-by-beautiful-green-trees-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 9, 2024 July 9, 2024

Fuel Market Report: June 30th – July 6th, 2024

Oregon Fuel Price Variance

Fuel Market News

Diesel prices jumped last week, while gas prices fell. Rack averages for B5 and B20 jumped $0.10/gal while E10 fell $0.04/gal. With the uptick in travel and outdoor activity over the holiday weekend, demand for non-ethanol prem gasoline skyrocketed, while Portland’s fuel supply dwindled to nothing for the high-demand fuel. Despite the allocation issue, prices for E10 fell which is very surprising. Fuel prices are still relatively low for the summer but we can expect prices to climb in the coming weeks.

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

Reasons For Price Variance:

Crude oil is trading above $80 for the fourth time in eight weeks, at a current price of $82.07/barrel, $1.48 lower than last week, as oil prices trended downward, for the first time in 4 weeks.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $82.07 per barrel compared to $83.55/barrel, last week and $85 a year ago.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

● https://gasprices.aaa.com/?state=OR

● https://www.gasbuddy.com/charts

Join the Fuel Market Report newsletter for your weekly fill of updates!

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July 4, 2024

June 2024 Fuel Market Recap https://staroilco.net/wp-content/uploads/2023/10/stock-market-forex-trading-graph-graphic-concept-1024x697.jpg 1024 697 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 4, 2024 July 4, 2024

June 2024 Fuel Market Recap

June 2024 Fuel Market Recap for Portland, Oregon

The diesel fuel market in the Pacific Northwest in June was characterized by tight supply and high prices. Between a limit in refining capacity, dependence on imports as well as seeing prices rise, it resulted in a month of challenges for Portland, OR and the Pacific Northwest fuel market.

Refining Capacity

Refineries throughout the region had maintenance and/or experienced operational issues recently, which reduced the overall diesel production. This includes BP’s Cherry Point refinery which appears to be going through a 50-day turnaround and Tesoro’s Anacortes refinery which is having “intermittent flaring.”

Dependence on Imports

Due to the limited refining stated above, the region also relied more on imports in recent weeks, which included ultra-low sulfur diesel (ULSD) being shipped in from Canada, which is very rare. Typically, the Pacific Northwest is exporting diesel.

High Prices

Limited supply combined with strong regional demand pushed diesel prices to be the most expensive in the country.

The transportation sector likely experienced several impacts related to an increase in transportation costs. Trucking companies, bus operators and other businesses that are related to diesel fuel happen to face much higher operating costs. This ultimately leads to added surcharges where companies may be implementing fuel surcharges to pass on some of that additional cost increase to their customers. Ultimately, it can result in reduced profit margins for businesses that are unable to pass on the full cost increase.

In other cases, you’ll see companies start to shift more into alternative fuels. Businesses with the flexibility to be able to use alternative fuels like biodiesel might have increased their usage to mitigate some of the cost increases. It will be interesting to see how the fuel prices as well as the Portland Renewable Fuel Standard (RFS) will affect companies’ choices in fuel. Alternative fuels like biodiesel and renewable diesel have grown tremendously in the Portland and Pacific Northwest and will continue.

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Industry Insiders Are Talking About A Biofuel Mismatch

Industry insiders are talking about a potential mismatch in biofuel stocks in the Pacific Northwest. Apparently, there’s a surplus of R99, while B99 seems to be harder to come by. The reasons behind this could be anything from swings in the availability of raw materials for each fuel type to shifts in local demand. One thing’s for sure, though: R99 and B99 aren’t exactly created equal, even though they’re both biofuels. R99 seems to be the more reliable and flexible option, but B99 might still hold some appeal in certain situations due to its price tag or specific environmental benefits. This situation could be a chance to fine-tune the biofuel infrastructure in the Pacific Northwest, either by pushing for more R99 use or figuring out ways to get more B99 on the market.

Industry insiders are also keeping a close eye on the recent decline in Renewable Identification Numbers (RINs) and CO2 credits. These tradable certificates serve as a currency for the carbon footprint of fuels. The drop could signal a slowdown in the production or use of cleaner fuels in the region, or conversely, a surge in demand for them. This development could put a strain on refiners trying to meet clean fuel regulations, potentially leading to higher compliance costs. Understanding the root cause of this decline is critical. Is it a regional issue with biofuel production? Or perhaps a broader market trend reflecting increased demand for cleaner fuels? Addressing this situation head-on will be essential for the PNW to maintain its momentum towards its clean energy goals.

Recent Article From gasprices.aaa.com

Here is an article from gasprices.aaa.com about the prices of fuel and what they’re doing right before Independence Day. It discusses the national average gas price increasing by five cents to $3.50. The increase has a high probability that it’s due to the cost of oil rising above $80 per barrel. This time of year, we expect a large number of travelers on the roads to celebrate the July 4th holiday week and weekend. Because who wouldn’t want an excuse for extra time off? This will likely increase the demand for fuel. According to gasprices.aaa.com, the most expensive gas in the country is currently in California, which is at $4.80 per gallon. The least expensive, according to gasprices.aaa.com is currently in Mississippi at $2.91 per gallon. What a difference!

Last year on July 3rd marks a record high price for diesel in the Portland, Oregon area. Today and this week’s current average for diesel in the Portland area is $4.23 per gallon. Reach out to our team about qualifying your business for wholesale fuel pricing.

highest-diesel-price-july-3rd-2023-compared-to-2024-oregon

comparing-national-average-to-oregon-average

Here is a comparison of Diesel prices in Oregon compared to the national average as of July 3rd, 2024.

Future Forcasting

While it’s hard to determine a future forecast for fuel prices in the coming weeks, what we can see is that fuel prices are down compared to this time last year. This is great! We do however see a price increase in fuel around this time of year due to the significant higher number of travelers on the roads during summer holidays. Some factors that could result in future fuel price fluctuations would be if the global oil market remained stable or not. The war in Ukraine has also had a great impact on crude oil prices. The war has caused uncertainty in the energy market in the past. The sanctions that the US have on Iran have also had a significant impact on crude oil prices. It has been more difficult for Iran to sell its oil, which has driven up prices in other parts of the world. If the global oil market remians stable and no major refinery disruptions occur, then diesel prices throughout Oregon could potentially stay the same or even decrease slightly over the coming weeks.

Thank you for choosing Star Oilco as your preferred fuel provider in the Portland, Oregon and Vancouver, Washington area. We provide fuel market news to raise value and understanding for our customers. Star Oilco loves supporting businesses in the Pacific Northwest and keeping their tanks full. We keep fuel simple.

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July 2, 2024

Fuel Market Report: June 23rd – June 29th, 2024 https://staroilco.net/wp-content/uploads/2023/12/trailer-trucks-driving-road-surrounded-by-beautiful-green-trees-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png July 2, 2024 July 2, 2024

Fuel Market Report: June 23rd – June 29th, 2024

Oregon Fuel Price Variance

Fuel Market News

Fuel prices fell this week, as gas and diesel dropped in price on both the wholesale and retail markets. Rack averages for diesel dropped $0.03 for B5 and $0.05 for B20, while E10 gas fell $0.07. With crude oil still above $80/barrel, it is surprising to see fuel prices hovering downward. We can expect prices to begin to climb after the 4th of July weekend with increasing travel trends and demand for fuel. It would be wise to fill up your tanks, cars, boats, or equipment before the holiday weekend pricing spike.

Schedule a tank top off before the holiday weekend.

Curious to learn more about R80/B20 blends?

Book an appointment with one of our low-carbon fuel analysts.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

Reasons For Price Variance:

Crude oil is trading above $80 for the third time in eight weeks, at a current price of $83.55/barrel, $2.24 higher than last week, as oil prices trended upward, for the fourth week in a row.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $83.55 per barrel compared to $81.31/barrel, last week and $86 a year ago.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

● https://gasprices.aaa.com/?state=OR

● https://www.gasbuddy.com/charts

Join the Fuel Market Report newsletter for your weekly fill of updates!

June 27, 2024

Clear Premium Non-Ethanol Gasoline https://staroilco.net/wp-content/uploads/2024/06/different-colours-gas-station-pumps-683x1024.jpg 683 1024 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png June 27, 2024 June 28, 2024

Clear Premium Non-Ethanol Gasoline

Do you need Non-Ethanol Gasoline in the Portland, Oregon area?

Nonethanol_Premium_92

If you are looking for Non-Ethanol Premium Gasoline delivered to your bulk tank or available at a Commercial Cardlock, Star Oilco has your needs covered in the Pacific Northwest.

Premium Unleaded without Ethanol Content

Premium gasoline without any ethanol blended into it goes by several names. Clear premium unleaded, Non-Oxy (non-oxygenated) premium, nonethanol gasoline, or Clear 91 Octane are a few of the terms used. Regardless of what it is called, getting gasoline without ethanol in the Portland, Oregon area requires buying a premium rated gasoline.

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Clear Gasoline Premium bulk tank delivery

Why is the only ethanol free gasoline in Oregon and Washington premium grade of 92 octane?

This is because of several laws in Oregon as well as Washington that require the blending of 10% ethanol with all gasoline with the exception of premium grades for small engines, classic cars, aviation uses, and other type specification needs.

With the blend requirements for 10% ethanol this changed the way gasoline was supplied in the Pacific Northwest. This was caused by the octane ratings of gasoline. Regular gasoline is a 87 octane rating. E98 ethanol has a 107 octane rating. With this blend requirement, the gasoline changed to account for the high octane of ethanol. So refiners and sellers of gasoline began to use what the industry calls a “sub-octane” gasoline at 85 octane because the guaranteed blend of 10% ethanol would boost the octane rating back up to 87 octane.

This is usually where people ask: “Why does this effect premium unleaded as well, and why the heck is clear premium so expensive?”

There are three reasons nonoxygenated gas costs more:

1- Ethanol is a lower cost fuel than gasoline, so less ethanol means a slight higher price of the fuel.

2- Fewer terminals carry a non-ethanol option for Premium unleaded reducing options for customers demanding the fuel and therefore higher prices.

3- CO2 regulations have raised the cost of fuels without biofuel blends in them as well.

REASON 1

The reason why is for several decades before the 10% ethanol blend mandate, the industry has been upgrading retail gas stations, cardlocks, and truckstops to blend regular gasoline and premium gasoline to the midgrade gasoline at the island. With a 10% ethanol blend mandate for regular unleaded and midgrade this required any and all retailers with blending pumps to use E10 (10% ethanol) premium to be legal with their midgrade product sold. This also means that a non-ethanol premium pump requires a stand alone pump, line set up, and infrastructure need.

REASON 2

The blend mandates for gasoline caused all of the major branded gas station chains to move to a defacto 10% blend at the terminal level reducing availability of non-ethanol or “Clear” premium gasolines. With far fewer petroleum terminals, brokers, refiners, and other upstream wholesale dealers of gasoline exiting the non-ethanol gasoline market due to far lower volumes of it, the price went up. This also means that there is far less volume of ethanol free premium unleaded being sold at the wholesale level. Reducing the volume of sales of a single fuel grade raises the cost risk in a volatile commodity market like gasoline.

REASON 3

Recently the entire western coastal states (Oregon, Washington, and California) passed laws around CO2 emissions and liquid fuels like gasoline. This means that there is a cost for fossil fuels over biofuels which prices into the gallon of fuel. The less biofuel the higher the CO2 cost for those buying it. Add to that the western states have Cap and Invest rules which put a total limit on volumes of fossil fuels. These “Cap at the Rack” charges for fossil fuel have been as high as a full $1 for a gallon of fossil fuel in past years. Cap at the Rack charges on fossil fuel gasoline is usually in the $.40 a gallon added cost range of the price you pay.

If Clear Premium Gas is so expensive why do people still use it?

It is the superior fuel for small engines that have a habit of being stored for long periods of time without use. Sure, the limited availability of terminals carrying this product makes it a specialty in Oregon and Washington. But the added cost is worth it for sensitive low tolerance engines or for vehicles with long periods of storage between uses.

Choose Star Oilco as your fuel provider for your clear premium non-ethanol gasoline

June 25, 2024

Fuel Market Report: June 16th – June 22nd, 2024 https://staroilco.net/wp-content/uploads/2023/12/trailer-trucks-driving-road-surrounded-by-beautiful-green-trees-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png June 25, 2024 June 25, 2024

Fuel Market Report: June 16th – June 22nd, 2024

Oregon Fuel Price Variance

Fuel Market News

Fuel prices jumped this week with the wholesale market seeing the biggest jumps as the retail market budged up slightly. The rack average for gasoline in Portland jumped $0.13, while B5 and B20 bumped up $0.10. The retail market saw less price fluctuation as the AAA average in Portland dropped $0.04 for gasoline. Four counties in Oregon had an average gas price below $4 (Baker, Deschutes, Gilliam & Polk) . Oregon is still one of the states with the highest fuel prices in the nation.

Curious to learn more about R80/B20 blends? Book an appointment with one of our low-carbon fuel analysts.

To learn more about these changes that will affect your company’s vehicles, equipment, and annual fuel purchasing schedule an appointment with one of our fuel market analysts.

Reasons For Price Variance:

Crude oil is trading above $80 for the second time in eight weeks, at a current price of $81.31/barrel, $1.11 higher than last week, as oil prices trended upward, for the third week in a row.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading at $81.31 per barrel compared to $80.20/barrel, last week and $85 a year ago.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.

For other news in the fuel market:

● https://gasprices.aaa.com/?state=OR

● https://www.gasbuddy.com/charts

Join the Fuel Market Report newsletter for your weekly fill of updates!

June 18, 2024

Understanding The Renewable Fuel Standard In Portland https://staroilco.net/wp-content/uploads/2020/03/77-fueling-support-for-those-on-the-road-1024x682.jpg 1024 682 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png June 18, 2024 June 27, 2024

Understanding The Renewable Fuel Standard In Portland

Diesel Fuel Is Changing In Portland With The Renewable Fuel Standard (RFS)

Figuring out what this means for you or your business can be challenging. We have shared many questions that we have been asked already, to help provide more clarity on what this Renewable Fuel Standard (RFS) means for Wholesale Purchaser-Consumers. If your question isn’t listed below, please reach out to Star Oilco so we can make sure your questions are answered!

I Have Questions

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What is the Portland's Renewable Fuel Standard?

The Renewable Fuel Standard (RFS) is Portland City Counsel’s response to the City’s 2022-2025 Climate Emergency Workplan, which lists the City’s priority actions over the next three years.

On Dec. 7, 2022, City Council unanimously adopted amendments to the Renewable Fuel Standard, Portland City Code Chapter 16.60, which reduces dependence on nonrenewable fossil fuels, by increasing the required percentage of renewable fuels blended with petroleum diesel sold in the city of Portland.

This policy increases low-carbon biofuel blends, moving Portland’s diesel fuel mix to 99% renewable in 2030. This policy includes a carbon intensity standard to shift to fuels that are lower carbon across their entire lifecycle.

What Does The Renewable Fuel Standard Mean For Me?

Portlands Renewable Fuel Standard Requirements

Starting July 1, 2024, Portland will require that all diesel fuel sold contain a minimum 15% blend of biodiesel or renewable diesel. This percentage will increase steadily over the next few years, reaching a minimum 99% renewable fuel requirement by July 1, 2030.

There are no reporting requirements for retailers to comply with this mandate. Instead, the city will enforce compliance through random on-site inspections and by requiring retailers to maintain records of the biofuel content of the diesel they sell.

Who Does The Renewable Fuel Standard (RFS) Apply To?

The policy speaks to “Covered Entities”
Diesel Fuel Transaction within the City of Portland Oregon
Fuel distributors, resellers, retailers, nonretail dealers, terminals, importers and wholesale purchaser-consumers are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”
Wholesale Purchaser-Consumers: also know as WPCs are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”

What Are Considered Wholesale Purchaser-Consumers ?

Wholesale purchaser-consumer (WPC) is a category of entities that own or utilize diesel vehicle fleets and purchase fuel in bulk for delivery into a storage tank at their facility or directly into a vehicles fuel tank. WPCs are required to register with the RFS program.

A fuel distributor or common carrier delivers on road diesel to your facilities on-site tank such as:

Bulk Tank
Aboveground Storage Tank (AST)
Underground Storage Tank (UST)

A fuel distributor delivers on road diesel directly into your vehicles also known as:

On-Site Fleet Fueling
Wet Hose Fueling

Does The RFS Only Apply To Wholesale Purchaser-Consumers of Diesel Fuel?

Yes, these rules apply to fuel for on-road motor vehicles. Fuels used for the following purposes are not covered by these rules:

Railroad locomotives, watercraft, aircraft, and emergency equipment
Dyed diesel for off-road vehicles
Dyed diesel for furnaces, boilers, generators
Propane and liquefied natural gas for vehicles

What Are The Requirements To Meet The RFS?

Wholesale Purchaser-Consumers are required to meet three primary components of the RFS:

Biofuel Minimum Content Requirements,
Carbon Intensity standard,
Selecting a compliance option, and
Record keeping.

What is the biofuel minimum content requirements for Wholesale Purchaser-Consumers ?

Biofuel Minimum Content Requirements for Wholesale Purchaser-Consumers

WPCs in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they purchase for their vehicle fleet. Beginning July 1, 2024, all diesel purchased must include 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on July 1, 2026, and 99% on July 1, 2030.
The biofuel content requirements will be enforced through random inspections of fleet facilities to see that they (1) have a contract in place with fuel suppliers that specifies that fuel meets the minimum blend requirements, or (2) verification of actual products purchased through testing or review of product transfer documents.

What is the Carbon Intensity (CI) Standard for Wholesale Purchaser-Consumers ?

All WPCs also need to be aware of the Carbon Intensity Standard in PCC Chapter 16.60.
All biodiesel and renewable diesel sold in the City of Portland must have a carbon intensity equal to or less than 40g CO2e/MJ as certified by DEQ’s Clean Fuels Program, Approved Carbon Intensity Values.
Carbon intensity requirements apply to biofuel blendstock, not the final blended products, which may contain a portion of petroleum-based diesel fuel at a higher carbon intensity.

Selecting a compliance option for Wholesale Purchaser-Consumers

WPCs will need to select a compliance option by the start of the compliance period, July 1, 2024.
Portland Bureau of Planning & Sustainability (BPS) will provide notification about selecting compliance options by May 31, 2024.
To receive notification, covered entities must be registered with the RFS Program.

*Compliance option selection may be changed at any time during the compliance period after consulting with BPS. If a covered entity decides to change the compliance option during the compliance period, they are responsible for compliance under the new option for the full compliance period.

Record Keeping Requirements for Wholesale Purchaser-Consumers

Portland City Code (PCC) Chapter 16.60 and administrative rules requires that an invoice, bill of lading, shipping paper, or other documentation, referred to as “Product Transfer Documents” (PTD) must accompany each fuel delivery in the city of Portland. The administrative rules specify that:

PTDs must include the type of renewable fuel, including biodiesel, renewable diesel, ethanol, or any blends of these fuels, and declare the volume percent of such renewable fuel.
PTDs must comply with OAR 603-027-0430 (1) (a) which includes identifying the quantity, the name of the product, the name and address of the seller and buyer, and the date and time of the sale.
WPCs using the Product Transfer Document compliance pathway must also ensure that fuel pathway codes issued by Oregon Clean Fuels Program are also included on a PTD associated with each delivery received by the WPC or have a contract with a fuel supplier specifying the carbon intensity requirements of PCC Chapter 16.60.