Midwest becomes more self-sufficient in meeting gasoline, diesel demand

In the past decade, refinery activity has risen while demand has been flat in the Midwest, allowing refineries in the region to meet a larger share of demand for gas and diesel, according to the U.S. Energy Information Administration.

The Midwest remains a net receiver of these fuels, especially in the summertime or when refineries are undergoing maintenance. Net receipts of gas and distillate, which is mostly ultra-low sulfur diesel, fell to 500,000 barrels per day in 2016, from 1 million barrels per day in 2006. “The decline in net receipts was driven primarily by a fall in gross receipts from the Gulf Coast, rather than an increase in shipments to other regions,” according to the EIA.

Gross receipts fell 444,000 barrels per day between 2006 and 2016. In the same period, shipments from the region increased 79,000 barrels per day. The rise was a result of increased shipments to the East Coast.

Pipelines are the main shipment mode between the regions. “Over the past 10 years, increasing movements from the Midwest to the Gulf Coast and decreasing movements in the opposite direction reflect increased Midwest self-sufficiency,” according to the EIA. “From 2006 to 2016, movement by pipelines of gasoline and distillate fuels from the Midwest to the Gulf Coast increased by nearly 22,000 b/d (46%), and pipeline shipments in the opposite direction fell by more than 339,000 b/d (48%).