America’s refiners and motor gasoline suppliers are facing an unprecedented inventory management challenge as the national response to COVID-19 has reduced domestic demand for fuel.
Earnings in commodities-based industries tend to be cyclical. Because of the up-and-down reality of refining, it would be a mistake to regulate or legislate based on the high points. A few quarters of earnings don’t provide an accurate representation. That context is important for answering the question of what happens with refinery profits and whether using earnings to “buy back” stock from shareholders is an appropriate use of those funds.
America’s freight rail system is an essential part of our national and global supply chains, including those for fuels and petrochemicals. While a work stoppage would be devastating, service curtailments and other strike impacts will be felt much sooner—before a strike is formally launched. As we learned this September, railroads will begin metering traffic and embargoing shipments of materials critical to the refining and petrochemical industries up to a week or more before a strike begins.
In advance of the AFPM Summit, AFPM Vice President of Technical and Safety Programs Lara Swett and Technical Operations Program Leader Alyse Keller talk about one of AFPM’s premier safety programs, Walk the Line.