So, just how do we get to energy security - to the point where, by 2030, 92 percent of America's liquid fuel needs is supplied by a combination of U.S. and Canadian sources? Here's how.

Start with where we are now. According to the Energy Information Administration (EIA), the United States uses slightly more than 19 million barrels per day (mb/d) in liquid fuels - including oil, heating oil, diesel and biofuels. Of that total, 8.5 mb/d (45 percent) comes from U.S. sources, 2.33 mb/d (12 percent) from Canada and 7.2 mb/d (38 percent) from the rest of the world. Biofuels account for about 1 mb/d (5 percent).

With the right policies, by 2030 the U.S. can account for 62 percent of its liquid fuel needs and Canada 16 percent. Add in the EIA's projection that biofuels will grow to 14 percent, a... more »

Gasoline prices rose to their highest level in the past two years yesterday. According to AAA, the average price of gasoline climbed one penny Dec. 29 to $3.071 per gallon. This is the highest level since October 15, 2008, when the average price of gasoline reached $3.084.

If you've been reading this blog, you're aware that the cost of crude oil is the largest factor in the price of gasoline. Between November 17 and December 28, crude oil prices increased 26 cents per gallon to $2.18 per gallon ($91.49 per barrel), which was the highest level in October 3, 2008, when the per-barrel price reached $93.88.

Demand for gasoline and diesel fuel also have climbed recently. Last month, according to API's Monthly Statistical Report, gasoline demand rose 3.2 percent over November 2009. Demand for Ul... more »

"Stronger fuel demand tells us a recovery is underway." Those are the words of API's Chief Economist John Felmy today, describing the good news in API's Monthly Statistical Report for November. The report shows that U.S. petroleum deliveries (a measure of demand) climbed 6.5 percent last month over November 2009. The increase was the largest year-to-year increase for any month in 2010.

Deliveries of Ultra-Low Sulfur Diesel (ULSD) fuel--the type that is required for all on-road diesel vehicles, including trucks delivering goods--jumped by 13.2 percent in November. Gasoline deliveries rose 3.2 percent last month as compared to the same time period last year.

"Fuel demand continues to strengthen, a positive sign for our economy," John said. "Gasoline deliveries are up three months in a row an... more »

In today's episode, I interview Patrick Kelly, API's policy advisor for downstream fuels issues, about the completion of the transition from low sulfur diesel to Ultra-Low Sulfur Diesel (ULSD) fuel for highway travel.

Use the audio player below to listen to information about the transition and follow along with the show notes. I hope you find the podcast informative.

00:17 Dec. 1, 2010 marks a milestone for the U.S. transition to Ultra-Low Sulfur Diesel fuel (ULSD). On that date, this redesigned diesel fuel will become the only diesel fuel sold throughout the country for highway travel. API's Patrick Kelly has been involved in this transition and is here in the studio with us today.

00:42 First of all, how does ULSD fuel differ from the type of diesel that has... more »

Nearly 42.2 million travelers are expected to hit the roads or take airplanes during the Thanksgiving holiday. According to AAA, that's an increase of 11.4 percent over last year.

AAA says improvements in the economy, disposable personal income, and household net worth combined with a decline in consumer debt are allowing more Americans to venture at least 50 miles from home. While 3.5 percent more travelers will fly to their destinations, an estimated 12 percent more motorists will be on the roads during the Nov. 24-28 period. (Reuters)

What can Thanksgiving travelers expect to pay for gasoline this holiday season? AAA data released today show that the nationwide average price of gasoline stood at $2.883 per gallon yesterday, down 0.5 cents from the day before. The lowest prices were foun... more »