US jet fuel production market growing at 0.7%

Press Release   •   Aug 07, 2012 15:54 BST

The US jet fuel production market has accelerated processing of jet fuel over the last five years, with revenue growing at an anticipated annual rate of 0.7% to reach $53.8 billion in 2012.

Growth within the US jet fuel production industry can be pit down to the increase in the price of crude oil as jet-fuel refiners passed costs down the distribution line.

Despite steady growth, the last five years have not at all been smooth running. The dips in crude-oil prices during the recession presented problems for the industry, with revenue plummeting 37.6% in 2009.

However, with oil prices rising and fewer jet fuel production facilities in underserved areas dragging on bottom lines, the industry has regained control and steadily righted itself and players have quickly returned to profitability.

Demand for jet fuel is also is primarily driven by the air transportation sector, which purchases jet fuel to propel its airplanes. The total number of trips taken by US residents was down in 2009, as households and businesses cut back on spending.

In 2010 and 2011, revenue-passenger miles grew 3.8% and 2.1%, respectively. The higher levels of travel have increased the air transportation sectors' need for jet fuel.

For more information on the US jet fuel production market, see the latest research: US Jet Fuel Production Market Report

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