The Jet Fuel Infrastructure Crisis

This article considers whether the jet fuel supply chain will be able to meet the demand generated by increased air travel. The author first reviews how jet fuel is produced, transported, and priced. Despite the fact that demand for petroleum products has continued to grow, no new refineries have been built in the United States for more than three decades. Changes to the product specifications of gasoline and diesel have also had a significant impact on the production and transportation of jet fuel. Jet fuel is particularly difficult to transport because it cannot tolerate even tiny quantities of contaminants. Pipelines cannot add drag reducer to jet fuel, cannot include dyes for identification purposes, and must filter the fuel to remove particulate and water that get picked up during transit through the pipelines. Further compounding the supply chain problems is the oil industries’ interest in reducing working capital by reducing inventories. The author illustrates these issues with case studies, one from Dulles International Airport (outside Washington, D.C.), one from Denver Airport (Colorado), and one from Los Angeles (California). Airlines and airports are cautioned to address the issues of fuel supply and infrastructure before they are caught in the crunch of a shortage.

Language

  • English

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Filing Info

  • Accession Number: 01033375
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 29 2006 10:36AM