Israel Refiners Struggle To Keep Pace With Gasoline Demand

• Israel’s consumption of transport fuels is rising while demand for other products is holding steady or falling, with natural gas being substituted for fuel oil and diesel in power plants.

• Demand for gasoline has risen at an average 3.3% a year over the past five years hitting 73,600 b/d in 2016. Taken together with naphtha, which is amalgamated with gasoline in some of the statistics, Israel had a 2016 gasoline deficit of 17,100 b/d, the highest level since 2012 when oil demand spiked after Egypt cut off gas supplies (see table).

• Transport diesel consumption has risen by an average 3.6% over the last five years to hit 65,900 b/d in 2016, almost 99% of the country’s 66,900 b/d total being diesel consumption. Diesel burning fell to just 1,000 b/d down from the 2012 peak of 42,300 b/d. Fuel oil consumption has fallen from 34,600 b/d to 8,100 b/d over the same period with ramp-up in gas output from 10tcf Tamar offshore gas field since start-up in 2013. Refiners exported a record 41,800 b/d of fuel oil in 2016 as local consumption continued to fall. (CONTINUED - 328 WORDS)

DATA INSIDE THIS ARTICLE

chart Israel Transport Fuel Consumption Rising As Fuel Oil Falls (% Of Total)
table Israel Oil Supply And Demand ('000 B/D)