Refined products demand
According to the EIA (U.S. Energy Information Administration), the expected motor gasoline, distillate fuel oil, and jet fuel demand in 2016 is 9.2 MMbpd (million barrels per day), 4.0 MMbpd, and 1.5 MMMbpd, respectively. While the demand for motor gasoline and distillate fuel oil is expected to increase from the year prior, the jet fuel demand is expected to decrease in 2016.
The expected increase in refined products demand should benefit Kinder Morgan’s (KMI) Products Pipelines segment. Next, we’ll look at the expected composition of KMI’s Terminals segment’s earnings.