Posted May 26, 2015
Reuters: U.S. Republicans have had to watch from the sidelines as the Obama White House has taken political credit for America's unexpected energy boom and tumbling gas prices. Now it has left their presidential candidates scrambling for a way to reclaim leadership on an issue the party once seemed to own.
Their apparent answer: calling time on a 40-year-old federal ban on crude oil exports and using the newfound energy bounty to strategic advantage.
"We've got an abundance of supply," Wisconsin Governor Scott Walker said this week in Oklahoma at a gathering of putative Republican candidates for next year's presidential election. Lifting the ban, he said, would allow exports to "our allies in Europe, where, instead of being dependent on (President) Vladimir Putin and the Russians, they could be dependent on Americans."
Posted December 16, 2014
Chicago Mayor Rahm Emanuel and his allies on the city council deserve credit for putting a stop – for now at least – to an ill-conceived proposal that would mandate the sale of higher ethanol blend E15 fuel at city service stations.
We say ill-conceived because, as argued here and here earlier this year, the E15 requirement could be full of risk for consumers and small business owners – while mainly benefiting ethanol producers. Recently, AAA urged Chicago lawmakers to vote against the ordinance.
Posted December 12, 2014
Posted November 24, 2014
For months we’ve been pointing out the brokenness of the Renewable Fuel Standard (RFS), the federal law requiring ever-increasing use of ethanol in the nation’s fuel supply.
We’ve written about the impending “blend wall,” the point where the RFS would require blending more ethanol into gasoline than could be safely used as E10, potentially putting motorists at risk for damage to vehicles while also potentially risking small-engine equipment and marine engines. We’ve written about RFS-mandated use of “phantom” liquid cellulosic biofuels – a fuel that hasn’t been commercially available despite the recent inclusion by EPA of landfill bio gas in that category (more about that in a future post). And we’ve written about how the 2014 requirements for ethanol use were months and months late from EPA, caught up in election-year politics.
The RFS is indeed broken. Late last week EPA basically agreed, announcing it’s waving the white flag on trying to issue ethanol-use requirements for 2014, which has just a little over one month to go. Instead, the agency said it will complete the 2014 targets in 2015 “prior to or in conjunction with action on the 2015 standards rule.”
Posted November 17, 2014
Saw a tweet last week from Jalopnik, a website “obsessed with the cult of cars and everything that moves you,” and it reminded me of an important point in the Renewable Fuel Standard (RFS) debate.
First, Jalopnik doesn’t actually do a car-of-the-year award because it considers them to be so much media hype. The tweet was a little jab at car awards. Still, Matt Hardigree, the site’s editor-in-chief, says the ’94 Miata really is a great, classic car.
Which leads to our point about the RFS: If you’re a lucky owner of a vintage Miata, don’t let E15 anywhere near its fuel tank.
Posted October 8, 2014
Others are picking up on how late EPA is in setting this year’s ethanol use requirements – as well as how political calculations appear to be affecting the administration’s management of the Renewable Fuel Standard (RFS). Politico (subscription required) has this:
The Obama administration is nearly a year late in setting its 2014 biofuels mandate, but both ethanol supporters and critics say with politics at play, the White House may delay its decision until after the midterm elections.
Several sources following the issue closely say that the White House hoped that boosting the overall volumes would be enough to act as a boon to (Democrat Bruce Braley in Iowa’s U.S. Senate race). But renewable fuels advocates in the state aren’t happy with that compromise, so anything short of a clear victory for ethanol makers could hurt Braley’s campaign. … “If they increase the number, but it’s still tied to the (ethanol) blend wall, in our view, they will have killed the program, and that will be seen as a huge loss for Braley, and they’ll wait until after the election,” said one person in the biofuels industry. “If it’s good for Braley, it’ll be before the election. If it’s bad for Braley, it’ll be a punt. And people will see the punt.”
Indeed they will. They can’t help but see energy policy being contorted to serve political ends. It’s no way to conduct energy policy, and it’s no way to treat Americans who ultimately could be impacted by decisions (or the lack thereof) under the RFS.
Posted October 2, 2014
The absurdity surrounding the Renewable Fuel Standard (RFS) continues:
Those Late 2014 Ethanol Requirements – EPA now is 10 months late with setting this year’s requirements for ethanol use. Under the RFS, the agency is required to tell obligated parties, like refiners, how much ethanol they’re required to use in a calendar year by November of the previous year. Thus, requirements for 2014 ethanol use were due in November, 2013.
As it is we’re getting closer to the point where the absurd becomes the ridiculous, with the growing possibility EPA could end up setting 2014’s requirements in 2015. It would be like something from one of the late, great Johnny Carson’s “Carnac the Magnificent” sketches: “Oh Unfortunate Ones, here’s how much ethanol you should have used …”
Posted August 15, 2014
Posted June 19, 2014
Bloomberg: North Dakota, which yesterday became just the fourth state to record oil production above 1 million barrels a day, could see even stronger growth over the summer as improved weather makes life easier for drilling crews.
Output increased to 1,001,149 barrels a day in April, the state’s Department of Mineral Resources reported yesterday. Texas, California and Alaska have crossed the million-barrel mark. Only Texas remains above the state, at almost 3 million barrels a day.
April oilfield work was hampered by heavy rain that shut roads and strong winds that closed down operations. Crews completed 200 wells during the month, and another 600 are already drilled and just waiting on hydraulic fracturing, or fracking. Better weather in the summer months should allow more new wells to start gushing oil.
Posted December 2, 2013
As EPA opens a 60-day comment period on its proposals for next year’s required ethanol use levels under the Renewable Fuel Standard (RFS), below is a light-hearted reminder that higher-ethanol blend fuels like E15 – which ethanol supporters advocate as a way to meet RFS mandates – pose significant risks for small engines.