Vitol

• Introduction
• Crude Oil
• Natural Gas
• LPG
• LNG
• Naphtha
• Gasoline
• Gas Oil & Jet
• Aviation
• Fuel Oil
• Coal
• Power
• Carbon
• Ethanol
• Methanol
• Chemicals
• Shipping
• Metals & Minerals
• Sugar
• Risk Management Solutions

Regulation & Notices

• REACH
• Notices

Case studies

• Pre-financing of crude oil
• Utility energy supply
• Securing the future of a coal mine
• Risk management

Industry context

This past year also saw a historic shift in the pattern of trade for ethanol. Until 2010 Brazil was the world leader in ethanol exports and the United States had been the world’s largest importer of fuel grade ethanol.

That supply and demand relationship changed dramatically in 2010 with the United States ethanol market responding to growing ethanol demand globally, currency fluctuations and a historic level of sugar prices, by becoming a net exporter of ethanol. Vitol, through our global presence in the fuels markets and our ability to utilise our substantial terminal and shipping presence, actively participated in this dramatic market shift and we continue to look for opportunities as the markets continue to evolve.

2011 saw the implementation of the California Low Carbon Fuel Standard (LCFS) which places increasingly stringent targets for the carbon intensity of transportation fuels used in the State of California. The LCFS requires participants to find creative solutions to supply fuel in this important market and Vitol is uniquely qualified to do this. The combination of the LCFS, combined with the current nationwide Renewable Fuel Standard, ensures that ethanol trading will remain essential for any company exposed to the U.S. transportation fuel markets.

We can expect further ethanol mandates from the Renewable Fuel Standard in the US, the Renewable Energy Directive in Europe, and a variety of other programs around the world. Higher volumes of biofuels will be accompanied by more regulated markets. Each country and California itself, require not only individual quality specifications, but biofuels from specific feedstocks meeting specific carbon intensity requirements. This is an area where Vitol is able to accommodate and provide our customers with their specific Bio Fuel needs.

Where we do it

Vitol continues to actively participate in the growing world market for ethanol. In the U.S., now the world’s largest ethanol market, having surpassed long time leader, Brazil, Vitol maintains an important presence in the key markets of New York harbour, Chicago, Florida, Houston, San Francisco and Los Angeles. Vitol maintains ethanol storage, supply and distribution in all of those markets and continues to look for opportunities to grow and add value.

How we do it

2010 saw the startup of Vitol’s grassroots storage, blending, distribution and marketing of finished gasoline and biofuels in Port Canaveral, Florida. Canaveral is Vitol’s first entry into the U.S. market for rack marketing of transportation fuels. This important terminal location has had an excellent start and we have seen a rapid growth in our sales.