With the approval of federal and state regulators, the Trans-Alaska Pipeline (TAPS) has been restarted at a reduced rate of flow. Rather than transporting about 640,000 barrels of oil a day from Prudhoe Bay to the port at Valdez, Alaska, the pipeline is moving about 400,000 barrels per day. At Valdez, the oil flows into storage tanks for loading onto tankers bound for West Coast refineries.

Although the secondary pipe in the basement of Pump Station 1 continues to leak and the new bypass piping has not been completed, government and Alyeska Pipeline Service Co. officials agreed that operations along the massive, 800-mile pipeline should be resumed. By turning on the pumps along the pipeline's route, the oil in the pipeline is warmed and concerns about icing can be addressed. At Prudhoe Bay... more »

No oil is flowing through the Trans-Alaskan Pipeline for the fourth day today as workers construct a bypass around a leaking pipe at Pump Station 1. The leak was discovered in a secondary line which is encased in concrete below the pumping station on Saturday. Oil was discovered flowing into the basement where the line passes through a wall. Siphoning trucks have recovered about 18 barrels of oil from the basement as oil remaining in the line continues to leak.

The Alyeska Pipeline Service Company, which operates the 800-mile pipeline from Prudhoe Bay to Valdez, Alaska, has had welders working around the clock to circumvent the leaky pipe and restore the flow of oil. According to the Anchorage Daily News, this is the third longest closure in the pipeline's 33-year history. In recent months... more »

Battle lines are being drawn over the labels that are supposed to be affixed to gasoline pumps dispensing E15. This fuel blend, which consists of 85 percent gasoline and 15 percent ethanol, has been authorized by the Environmental Protection Agency (EPA) for use in 2007 and newer model vehicles despite the fact that it appears to be capable of harming some engines and dispensing equipment.

Now a fight is brewing over the labels for the pumps. To prevent misfueling, API is proposing a label that provides the critical information to the consumer to make an informed decision:

Growth Energy, the pro-ethanol group that petitioned the EPA to permit the sale of E15, prefers this label:

Now I ask you: Which of these labels is more likely to get your attention and stop you from putting the wrong f... 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 »

If you drove during the Thanksgiving Day holiday, you probably noticed that the price of gasoline has increased. Since September, gas prices have climbed several cents per gallon.

Why? API's Monthly Statistical Report for October shows that demand for oil products has climbed, signaling a modest improvement in the economy. As demand rises, it puts upward pressure on the cost of the raw material used to produce gasoline--crude oil.

In the first eight months of 2010, crude oil alone made up 67 percent of the price at the gasoline pump. Refining the crude oil into gasoline and retailing added another 18 percent to the retail price of gasoline. And taxes accounted for the remaining 15 percent.