Energy In-depth: Gas Prices Expected To Drop Ahead Of Summer Drive Season

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news in our email newsletter, which you can sign up to receive daily for free here.

GAS PRICES EXPECTED TO DROP AHEAD OF SUMMER DRIVE SEASON
AAA officials said lower gas prices may be on the way for U.S. consumers by this summer if refinery maintenance ends smoothly and if crude oil remains relatively cheap. As of Thursday, the average price for a gallon of regular unleaded in Arkansas is $2.20 per gallon.

“This spring has been relatively pain free at the pumps for most drivers with a few exceptions,” said Avery Ash, AAA spokesman. “Gas prices in most places are still relatively cheap and we have not seen the national average jump at the same dramatic rates that have been so common during the spring in recent years.”

It is even possible that gas prices will return to near $2 per gallon in some areas, as long as there are no unexpected problems in the meantime. AAA does not expect the national average to rise above $3 per gallon this year.

“There is a real hope that gas prices could drop significantly in time for the busy summer driving season,” Ash said. “The overall outlook looks good for drivers, and with any luck we will avoid the types of problems that often lead to higher gas prices at this time of year.”

To check out daily fuel prices for Arkansas and several of the state’s metro areas, click here.

NEW WEBSITE MAPS OUT CRUDE-BY-RAIL SHIPMENTS
For the first time since it began compiling statistics on the energy sector, the U.S. Energy Department released monthly data on rail movements of crude oil, which have significantly increased over the past five years.

The new data on crude-by-rail (CBR) movements, compiled by the U.S. Energy Information Administration, are fully integrated with EIA’s existing monthly petroleum supply statistics, which already include crude oil movements by pipeline, tanker, and barge.

“The new crude-by-rail data provides a clearer picture on a mode of oil transportation that has experienced rapid growth in recent years and is of great interest to policy makers, the public, and industry,” said EIA Administrator Adam Sieminski. “EIA expects that the new data it has developed using information provided by the U.S. Surface Transportation Board (STB) along with data from other third-party sources and our own survey data, will provide key insights into oil-by-rail movements, including shipments to and from Canada.”

Of note is that increased oil production in the Bakken Shale in North Dakota has increased the flow of rail movements into the Midwest south into the PADD 3, the EIA’s zone designation for Arkansas, and other Gulf Coast states. To learn more, go to the EIA’s Crude Oil by Rail website here.

STATE ENERGY DIVISION TO PROVIDE CODE TRAINING PROGRAMS
The Arkansas Energy Office, a division of the Arkansas Economic Development Commission, is teaming up with the Southeast Energy Efficiency Alliance, Advanced Energy, and Southface Energy Institute to form the Arkansas Residential Energy Codes Team, which will offer three Energy Code Forums in Arkansas.

“We want to work with our professionals in the construction industry to make the residential energy code as easy to understand as possible,” said Mitchell Simpson, interim director of the Arkansas Energy Office. “The input we receive from these professionals will directly benefit Arkansas homeowners with increased comfort and lower utility bills.”

State Energy officials said the forums are the beginning of a three-year project by the Arkansas Residential Energy Codes Team to develop new trainings, resources, and tools to make it easier and more cost-effective for residential builders to utilize the new residential energy codes in new home construction projects. The team will use builders’ input to focus resources and training.

The forums, which are free to contractors and builders, will include an interactive discussion, breakfast, door prizes, and a free ICC Energy Code book. For more information, visit the Arkansas Energy Office at www.arkansasenergy.org or call 1-800-558-4567.