Mercedes Mullins
Diesel fuel is a product of petroleum refining, which is a process that transforms crude oil into various products. The largest petroleum refining companies in the United States produce most of the diesel fuel consumed in the country. Diesel fuel is typically transported from refineries and ports to terminals near major consuming areas via pipelines, barges, trains, and trucks. The US has become a major exporter of refined petroleum products, including diesel fuel, to markets such as the European Union and other regions. The refining process, environmental regulations, and market demands influence the production and distribution of diesel fuel globally.
| Characteristics | Values |
|---|---|
| Companies refining diesel fuel | Petroleum refineries |
| Location | The US, Canada, India |
| Largest petroleum refining company | Not clear, but Samuel Kier of Pittsburgh was the first known US petroleum refiner |
| Products | Gasoline, jet fuel, diesel fuel, heating oil, asphalt base, kerosene, liquefied petroleum gas, petroleum naphtha, lubricating oils, wax, asphalt, petroleum coke |
| Environmental impact | Air, water, and soil pollution |
| US diesel fuel production in 2022 | 1.75 billion barrels (73.46 billion gallons) of ultra-low sulfur distillate |
| US diesel fuel consumption in 2022 | 1.44 billion barrels (60.30 billion gallons) of ultra-low sulfur distillate |
| US diesel fuel imports in 2022 | 0.07 billion barrels (2.80 billion gallons) of ultra-low sulfur distillate, 72% from Canada |
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What You'll Learn
- US refineries produce most of the diesel fuel consumed in the US
- Diesel fuel is transported by pipeline, barge, train, and truck
- US refineries have increasingly exported petroleum products to the EU
- US diesel fuel must comply with environmental air and water pollution regulations
- Diesel fuel is a product of the refining of crude oil
US refineries produce most of the diesel fuel consumed in the US
The US was the world's largest net importer of refined petroleum products until 2008. However, the situation changed in 2008 when American refineries became more cost-competitive due to increased production of oil, natural gas, and natural gas liquids. The US became a net exporter of refined petroleum in 2010 and has been the world's largest net exporter since 2013.
European Union refiners have been negatively impacted by the growth in US exports. They lost a significant portion of their gasoline exports to the US and market share in the global market. US refineries have also started exporting petroleum products to the EU. As a result, there have been discussions about the potential shutdown of EU refineries without government intervention.
US refineries have been responsible for air, water, and soil pollution, leading to millions of dollars in settlements and fines for violations of environmental laws. Some former refinery sites, such as the Diamond Head Oil Refinery Superfund Site in Kearny, New Jersey, are now Superfund sites.
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Diesel fuel is transported by pipeline, barge, train, and truck
Diesel fuel is a liquid fuel designed for use in diesel engines, which are a type of internal combustion engine. Diesel fuel is a high-volume product of oil refineries and is produced from various sources, most commonly petroleum. Other sources include biomass, animal fat, biogas, natural gas, and coal liquefaction.
In the United States, petroleum refineries produce most of the diesel fuel consumed in the country. Diesel fuel is transported by pipeline, barge, train, and truck. Most diesel fuel moves by pipeline from refineries and ports to terminals near major consuming areas. Barges and trains also move diesel fuel to these terminals. From the terminals, trucks transport the diesel fuel to retail service stations and large-volume consumers such as vehicle fleet operators.
The use of diesel fuel is widespread, powering most farm and construction equipment in the United States. Diesel fuel is also used for transportation, with diesel engines found in trucks, trains, boats, and barges. Diesel engines offer a range of performance, efficiency, and safety features, making them a popular choice for various industries.
The United States is a significant producer and exporter of diesel fuel, with increasing adoption of biomass-based diesel fuels such as biodiesel and renewable diesel. In 2022, U.S. refineries produced about 1.75 billion barrels of ultra-low-sulfur distillate (ULSD), with total consumption being about 1.44 billion barrels.
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US refineries have increasingly exported petroleum products to the EU
For decades, up until 2008, the US was the world's largest net importer of refined petroleum products. However, this dynamic changed rapidly as American refineries became more cost-competitive due to increased domestic production of oil, natural gas, and natural gas liquids. In 2010, just two years after this shift, the US became a net exporter of refined petroleum, and by 2013, it had become the world's largest net exporter. This change has been particularly challenging for EU refiners, who have lost a significant portion of their gasoline exports to the US and their market share in the global market.
One notable example of the increasing US exports to the EU is the surge in US gas oil exports, which include home heating fuel. In 2008, US gas oil exports to the EU held a 31% market share, a significant increase from 5% just the year before. By 2011, US imports had captured an even larger share of the EU market, reaching 37%. This trend has raised concerns about the viability of EU refineries, with discussions suggesting that government intervention may be necessary to prevent shutdowns.
The competitive advantage of US refiners has been attributed to the lower price of American crude oil compared to European-indexed prices. Additionally, logistical considerations, such as the proximity of the US Gulf Coast to Mexico, have made it economically advantageous for US refiners to export their products to nearby markets rather than shipping them to other parts of the US. This has further contributed to the increasing exports of petroleum products from the US to the EU and other regions.
US refineries play a crucial role in producing most of the diesel fuel consumed within the country. The primary type of diesel fuel produced in the US is ultra-low-sulfur distillate (ULSD), which has a sulfur content of 15 parts per million or less. In 2022, US refineries produced about 1.75 billion barrels of ULSD, exceeding the country's total ULSD consumption, which was about 1.44 billion barrels. The US also imported a small percentage of ULSD, primarily from Canada, to meet its diesel fuel needs.
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US diesel fuel must comply with environmental air and water pollution regulations
Diesel fuel is a refined petroleum product, and in the US, petroleum refineries produce most of the diesel fuel consumed in the country. Diesel fuel is transported from refineries and ports to terminals near major consuming areas via pipelines, barges, trains, and trucks. Due to the possibility of mixing during transportation, diesel fuel must undergo quality testing to ensure it meets local, state, and federal specifications.
In the US, diesel fuel must comply with environmental regulations aimed at reducing air and water pollution. Since 2006, the Environmental Protection Agency (EPA) has implemented stricter regulations to limit the sulfur content in diesel fuel to 15 parts per million (ppm), known as ultra-low sulfur diesel (ULSD). This regulation was initially applied to on-road vehicles and was later extended to non-road vehicles, locomotives, and marine vessels. The reduction of sulfur in diesel fuel is crucial as it can damage emission control devices, and high sulfur levels contribute to harmful air pollution.
The EPA's diesel fuel standards target emissions from both on-road and non-road diesel sources, aiming to reduce harmful emissions by more than 90%. To meet these standards, engine manufacturers are incorporating advanced emission control technologies. Additionally, the EPA has proposed regulatory changes to accommodate the distribution and sale of distillate diesel fuel that complies with the global sulfur standard of 0.50 percent (5000 ppm) specified in MARPOL Annex VI.
While the US has made significant progress in reducing sulfur content in diesel fuel, refineries have been responsible for environmental pollution, including air, water, and soil pollution. Some former refinery sites have been designated as Superfund sites, and refineries have faced substantial fines and settlements for violating environmental laws. The US has also been working to reduce its dependence on imported refined petroleum products, becoming a net exporter of refined petroleum in 2010 and the world's largest net exporter in 2014.
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Diesel fuel is a product of the refining of crude oil
The process of refining crude oil involves breaking it down into its various components, which are then selectively reconfigured into new products. Modern separation involves piping crude oil through hot furnaces, with the resulting liquids and vapors discharged into distillation units. All refineries have atmospheric distillation units, but more complex refineries may have vacuum distillation units. Inside the distillation units, the liquids and vapors separate into petroleum components, called fractions, according to their boiling points. Heavy fractions are on the bottom, while light fractions are on the top.
After distillation, heavy, lower-value distillation fractions can be further processed into lighter, higher-value products like gasoline. At this stage, fractions from the distillation units are transformed into streams (intermediate components) that eventually become finished products. The most common conversion method is called cracking, which uses heat, pressure, catalysts, and sometimes hydrogen to crack heavy hydrocarbon molecules into lighter ones. Complex refineries may have different types of cracking units, such as fluid catalytic cracking units and hydrocracking/hydrocracker units.
The final treatment involves carefully combining a variety of streams from the processing units to create the finished product. For example, in the case of gasoline, refinery technicians consider octane level, vapor pressure ratings, and other factors to determine the gasoline blend. The finished products are then transported from storage tanks to locations across the country via pipelines, trains, and trucks.
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Frequently asked questions
Many companies refine diesel fuel, but the largest petroleum refining companies in the US include:
- Samuel Kier of Pittsburgh (the first US petroleum refiner)
- Drake Well
A diesel refinery is an industrial process plant where crude oil is transformed and refined into products such as gasoline, diesel fuel, jet fuel, heating oil, and kerosene.
To be efficient, refineries are designed to process a particular grade of crude oil. The first step is to heat the crude oil in a furnace until it vaporizes into a gas. The liquids and vapours then enter an atmospheric distillation tower, which separates them into different streams based on their boiling points.
The US, Canada, and India are among the countries that refine diesel fuel. The Jamnagar Refinery in India is the largest refinery in the world and can process 1.2 million barrels of oil per day.
