Author: Joe Petrowski

The Importance of Offshore US Oil Drilling

By Joe Petrowski, President Trump deserves the industry’s support by allowing off shore drilling in US waters. The reasons for this are numerous including, believe it or not, environmental.  While crude oil is making new three-year highs mainly because of world-wide economic recovery, everyone recognizes low energy prices are essential for economic prosperity. Presently we consume 20 million barrels/day, produce 11 million barrels and import nine million barrels. While we are producing more than we are importing for the first time in modern history—and that is a remarkable accomplishment—we are not “self sufficient which would producing more than we...

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A Look at the Petroleum Market 2018

By Joe Petrowski The surprise of 2017 was that oil markets remained under pressure despite all the blustering from OPEC and the significant economic recovery in the US and the rest of the world. Also surprising to some was that oil prices never collapsed, and found a bottom at $30/barrel for WTI and $45 for Brent. With WTI now about $59/barrel and Brent $66/barrel what do we see for 2018?   Demand World oil demand has recovered and is strong. While there is some softness in China, Chinese demand will be up 4 million barrels per day and the...

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Petrowski: What Is Harvey Going to Do to Gas Prices?

Editor: There is a lot of speculation going on as to the impact Hurricane Harvey is going to have on gasoline prices. Should you believe the hype? Industry veteran and seasoned analyst Joe Petrowski dropped a quick note on on gas price predictions on what to expect. The hype over rising gasoline prices because of Harvey and refinery shutdowns is all nonsense. Here is why: The US consumes 14 million barrels of fuel (gasoline & diesel per day) Demand is trending down seasonally (driving season) and secularly We have almost 400 million barrels of refined products in stock so...

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Developing Outstanding Fuel Management

By Joe Petrowski   For a retailer to maximize fuel income and traffic for inside sales, it is vital to have both a great procurement team and a street pricing team working in a collaborative and coordinated fashion. For procurement, the essential variables are: Building optionality into the book as much as possible. That means multiple suppliers, multiple terminals, multiple trucking vendors and a portfolio of contracts (index, posted, MERC, differentials and fixed). Maximizing credit lines with suppliers and being set up at multiple terminals. Understanding transportation costs, including pipeline, barge and trucking. Understand blending economics, including renewable identification...

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Convenience Retailing as Part of the Education and Employment Solution for the USA

By Joe Petrowski   Everyone works for 3 reasons: Money Self-Improvement (building skills, a resume and a network) Fun (subjective for every individual)   It is an old adage that the best way to get a high paying job is to get a low paying job and do it well. A common theme at several Federal Reserve meetings and business roundtables I have attended has been how hard it is to find and hire qualified candidates. Then I thought about our industry and my experiences in the past with interns, and my own career path.   An associate at...

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