The dynamic relationships between paper petroleum refining and physical trade of crude oil into the United States

This article examines the relationship between refinery margins traded on paper using petroleum futures (the paper refinery) and the physical trade of crude oil into the US. Computations of a 3:2:1 crack spread were constructed using daily observations of second- and third-nearby unleaded gasoline and heating oil futures contracts traded on the New York Mercantile Exchange (NY MEX) and spot Brent crude oil prices. The crack spread represents the margin between the cost of crude oil feed stock today and the value of the products produced by a refinery in the future. Unit root tests on each of the time series found crack spreads to be stationary while crude oil imports were found to be non-stationary. A s the two series were found to be integrated of different order, cointegration analysis of the two series was not deemed appropriate. Instead, linear relationships between crack spreads and imports were examined using causality tests. It was found that the 2-month 3:2:1 crack spread Granger-causes crude oil imports and that this causality is unidirectional. The significance of these findings lies in the fact that other industries like tanker shipping derive their demand from the demand for, and trade in, petroleum. Crack spreads, therefore, can provide a leading indicator for short term developments in tanker demand. For a chartering manager who has ships on the spot market, crack spreads can help him/her anticipate demand developments and influence vessel deployment and chartering decisions.     

Some Thoughts on Flags of Convenience

The purpose of this article is to formulate the problem, to assess its magnitude, and at the same time to suggest the areas that must be investigated before any practical policy recommendations can be made.     

The EEZ and the progress of fisheries negotiations January to May 1977

This paper discusses negotiations, relative to sea fisheries, in terms of international arrangements—arrangements between the European Economic Community (EEC) and Third Countries; and those between member states of the EEC.     

Improvement of external transport cost evaluation in the context of Lithuania’s integration into the European Union

This paper starts by reviewing the main components of social marginal costs and environmental costs in the context of transport, and it draws on the experience in Europe concerning the means by which these costs can be valued. That experience is then translated to the situation in Lithuania, where many of the same issues are now being debated. A multicriteria method is proposed to internalize these costs, both from the perspective of the state and of the carriers. Costs need to be raised substantially if the social and environmental factors are to be paid for by the transport users, and such action would bring Lithuania closer to the best practice currently in operation in the European Union.     

Route choice of cyclists in Zurich

This paper presents the first route choice model for bicyclists estimated from a large sample of GPS observations and overcomes the limitations inherent in the generally employed stated preference approach. It employs an improved mode detection algorithm for GPS post-processing to determine trips made by bicycle, which are map matched to an enriched street network. The alternatives are generated as a random sample from an exhaustive, but constrained search. Accounting for the similarity between the alternatives with the path-size factor the MNL estimates show that the elasticity with regards to trip length is nearly four times larger than that with respect to the share of bike paths. The elasticity with respect to the product of length and maximum gradient of the route is small. No other variable describing the routes had an impact. The heterogeneity of the cyclists is captured through interaction terms formulated on their average behaviour.     

Location of bus garages

The location of bus garages is a complex issue that has received recent attention in the literature. Given a bus system, the number of bus garages and their locations depend on garage cost, deadheading cost and environmental impacts. An approximate analytical model is used to determine the number of bus garages that minimizes the above costs. The concept of a slowly varying density of bus-route origins (hence deadheads) per unit area is used to model deadheading costs. The increased deadheading caused by breakdowns and accidents is also considered. The garage cost is modeled as a function of the number of buses stored. A closed-form solution is obtained for the optimal density of garages, when the garage cost function is linear. The actual locations of garages and the allocations of buses to the garages are found using a discrete space location-allocation model formulated so as to consider the environmental impact associated with buses deadheading through populated neighborhoods.     

Trip distribution for limited destinations: a case study for grocery shopping trips in the Netherlands

In this paper, we introduce a new trip distribution model for destinations that are not homogeneously distributed. The model is a gravity model in which the spatial configuration of destinations is incorporated in the modeling process. The performance was tested on a survey with reported grocery shopping trips in the Dutch city of Almelo. The results show that the new model outperforms the traditional gravity model. It is also superior to the intervening opportunities model, because the distribution can be described as a function of travel costs, without increasing the computational time. In this study, the distribution was described by a simple function of Euclidean distance, which provides a good fit to the survey data. The slope of the distribution is quite steep. This shows that most trips are made to nearby supermarkets. However, a significant fraction of trips, mainly made by car, still goes to supermarkets further away. We argue that modeling of these trips by the new method will improve traffic flow predictions.