By Patti Domm
U.S. refineries are expanding their diesel-production capacity, not so much for truckers in the U.S., but for drivers in places like Mexico City and Santiago, Chile.
Already running at their highest levels in six years, U.S. refineries are finding strong demand for diesel fuel, used widely in cars outside of the United States, and other distillates, like jet fuel.
“All these companies are expanding their export terminals— Valero, Shell, Marathon Petroleum, all of them,” said Fadel Gheit, senior energy analyst at Oppenheimer. “Any companies with refining assets on the Gulf Coast are expanding their export terminals…The profitability is not that clear, but the trend is very clear.”
The U.S. became a net exporter of petroleum products just two years ago and is now the largest exporter in the world.
The product of choice for export is diesel because the margins are much higher and demand is growing, and U.S. refiners have an advantage over foreign counterparts.
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