EAI, Inc. Explores Changing Dynamics in U.S. Western Downstream Market with New Industry Study

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Western Regions have transitioned from being short of light petroleum supply to being more balanced.

EAI, Inc. has started shipping its "U.S. Western Regions Downstream Business Analysis and Outlook 2014" study and information base providing a big picture perspective of the entire Western Region trade area and exploring the interaction with both global and other North American regional supply and market hubs. EAI, Inc. provides a Deep Dive into each business component including refining, product logistics, product sales and markets, and supply economics across the Pacific Northwest, Pacific Southwest and Rocky Mountain regions as well as Deep Dives into specific markets and refinery hubs.

The overall Western Regions trade area has transitioned from being net short of light petroleum product supply to being more balanced. The interplay between the Puget Sound, San Francisco Bay, Los Angeles, Billings, Salt Lake City, and West Texas-New Mexico refineries has changed dramatically over the last few years with the Los Angeles area refinery hub backing out both foreign and domestic refined products. Over this same period, both Rocky Mountain and West Texas-New Mexico refiners have been gaining market share in the Las Vegas and the Tucson-Phoenix markets. In addition, the Salt Lake and Billings refiners have maintained a relatively strong foothold in the Eastern Washington market.

Although the major oil companies retain a strong integrated brand presence in California, peripheral markets such as Las Vegas and Phoenix have a very large unbranded gasoline presence resulting in a very competitive wholesale gasoline market.

These dynamics coupled with the California Low Carbon Fuel Standard (LCFS) initiative and its impacts on consumption, refinery costs and crude selectivity, as well as the barriers on the West Coast to receiving advantaged inland crude via rail will continue to reshape the Western region as detailed in this EAI, Inc. benchmark industry study. This study product complements EAI, Inc.’s "U.S. East of the Rockies Downstream Business Analysis and Outlook 2014" study which addresses the remainder of the U.S. as well as major global interactions with the Greater Atlantic Basin.

About EAI, Inc. (Energy Analysts International)

EAI Inc. (Energy Analysts International) is an energy consulting firm offering leading edge industry studies, products and services is headquartered in Westminster, Colorado. EAI, Inc. has worked with a wide range of companies including international energy firms, independent refiners, resource development firms, investment institutions, marketers and retailers, transportation companies, and government agencies for over thirty years offering industry expertise across a variety of business areas and segments at the global, regional, asset and resource level of detail.

To learn more about this study and other informational products, please contact EAI, Inc. at +1.303.469.5115, or visit http://www.crudehub.com.

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Joseph Leto
EAI, Inc.
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