The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

renewable-fuel-standard  epa34  ethanol  e1534  e10-blend-wall  e8534  cellulosic-biofuels 

Mark Green

Mark Green
Posted April 30, 2014

In seeking regulatory certainty, compliance with rules and deadlines and policies that acknowledge market realities, industry is hardly being unreasonable. Unfortunately, these are scarce in EPA’s setting of new ethanol use levels under the Renewable Fuel Standard (RFS).

Let’s start with deadlines. Under the law EPA was supposed to tell refiners by the end of last November how much ethanol would have to be blended into the U.S. fuel supply this year. Four months into the year, refiners are still waiting. That’s regulatory uncertainty.

Market reality? EPA continues to signal on cellulosic biofuels that the 2014 mandate will have no connection to actual commercial production – setting up an absurd situation where refiners could be penalized because a “phantom fuel” doesn’t exist in commercial volumes necessary to satisfy the mandate.

Hello, EPA, can we talk?

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renewable-fuel-standard  economic-impacts  blend-wall  ethanol 

Mark Green

Mark Green
Posted April 15, 2014

Yesterday we looked started looking at the oil and natural gas industry’s economic impact on individual states with a focus on Kentucky. Today, let’s talk about the importance of having the right energy policies in place to avoid negative impacts on local economies and individual consumes. Again, we’ll consider Kentucky.

Last month White Castle restaurant chain CEO Lisa Ingram wrote an op-ed piece for the Louisville Courier-Journalthat explained how the federal Renewable Fuel Standard (RFS) is having local, negative impact. Though the first White Castle opened in Wichita, Kan., nearly a century ago, Ingram writes, the chain has deep ties to Kentucky and serves more customers in Louisville than all but a few other markets. The city is home to one of the company’s frozen food plants, which employs nearly 200.

Yet the RFS – energy policy that has become obsolete and counter-productive in the midst of the U.S. domestic energy revolution – is putting upward pressure on food prices by requiring ever-increasing use of ethanol in the fuel supply.

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economy  jobs  fracking  texas  ethanol  renewable-fuel-standard 

Mary Leshper

Mary Schaper
Posted April 11, 2014

NPR: South Texas is in the midst of a massive oil boom. In just a few years, it has totally transformed once-sleepy communities along a crescent swoosh known as the Eagle Ford Shale formation and has brought unexpected prosperity — along with a host of new concerns. Among the towns drastically changed by the drilling is Cotulla, southwest of San Antonio, about 70 miles up from the border with Mexico. The area is called brush country — flat, dry ranch land, scrubby with mesquite and parched by drought.

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ethanol-blends  renewable-fuel-standard  regulation  epa34  consumers  cellulosic-biofuels 

Mark Green

Mark Green
Posted March 25, 2014

Check out our new ads on the Renewable Fuel Standard (RFS)  – including a video that highlights in a humorous way the potential negative impacts for consumers from RFS mandates that force higher ethanol blends into the marketplace.

Unfunny would be seeing boaters left high and (not so) dry because their marine engine conked out, damaged by higher ethanol-blend fuel. Or stranded motorists, or home owners with outdoor equipment ruined by using fuel with more ethanol content than the mower or trimmer was designed to use. These are the real-world stakes in the current debate over the RFS and its ethanol mandates.

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renewable-fuel-standard  ethanol  e1534  epa-standards  consumers  engine-safety 

Mark Green

Mark Green
Posted March 21, 2014

With winter grudgingly giving way to spring, the guess here is discussion of the flawed Renewable Fuel Standard’s ethanol mandateshigher ethanol-blend fuels like E15 and the “blend wall” will rekindle debate in Congress.

Lawmakers must act, because while EPA has proposed lowering ethanol-mandate levels from 2013, the rule still isn’t final (it was due at the end of November last year) and would only temporarily address potentially harmful impacts of the blend wall – to consumers and the broader economy.

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renewable-fuel-standard  ethanol-blends  e8534  e1534  blend-wall 

Mark Green

Mark Green
Posted February 24, 2014

In recent years we’ve regularly disagreed with the Renewable Fuels Association (RFA) on the Renewable Fuel Standard (RFS) because its ethanol mandates could harm consumers and the broader economy. The conversation with Big Ethanol has been, well, spirited. That said, hats off to RFA for including an oil and natural gas industry executive as one of the keynote speakers at the recent National Ethanol Conference (NEC).

Marathon Petroleum’s David Whikehart, director of product supply and optimization, was invited, said RFA’s Bob Dinneen, because “it is critical that we be open to the message of our customer.” A constructive view for sure.

The oil and natural gas industry supports ethanol and other renewable fuels. We are the ethanol industry’s biggest customer. Yet, the ethanol mandates in the RFS potentially could result in damaged vehicle engines as well as powerand marine equipment and already have played a part in higher food costs and other consumer impacts recently. All of the above threaten to erode critical public support for renewable fuels, which is why the RFS should be repealed.

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renewable-fuel-standard  ethanol  blend-wall  epa34 

Mark Green

Mark Green
Posted January 31, 2014

We’ve written quite a bit about bad things that could occur because of the Renewable Fuel Standard’s (RFS) mandates for ever-increasing ethanol use in the fuel supply – from potential damage to vehicle engines and small power equipment engines tobroader impacts in the economy.  A study by NERA Economic Consulting warned that RFS mandates could lead to fuel rationing and supply shortages that by 2015 could drive up gasoline costs 30 percent and the cost of diesel by 300 percent.

Now EPA is in the last lap in the process to set ethanol use levels for 2014. The agency’s proposal is reduced from where it was in 2013. EPA even acknowledged the ethanol “blend wall” – the point where, to satisfy the RFS, refiners have to blend fuel with higher ethanol content than millions of vehicles are designed to use.

EPA should follow through and set this year’s mandate so we avoid the blend wall and its onerous impacts this year. For a permanent solution, Congress should repeal the RFS.


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regulation  permitting  investment  keystone-xl-pipeline  renewable-fuel-standard 

Mark Green

Mark Green
Posted January 8, 2014

During Tuesday’s State of American Energy address, API President and CEO Jack Gerard sketched out a more secure energy future for the United States – based on increased access to domestic oil and natural gas reserves, industry technology and ingenuity and a business/investment climate that allows development to go forward.

Let’s focus on that last part, which is less a request for government to do something than simply asking it to avoid hindering safe and responsible energy development through misguided policies and overreaching regulation.

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energy-policy  fracking  innovation  technology  renewable-fuel-standard 

Mary Leshper

Mary Schaper
Posted January 6, 2014

Fracking 101: Breaking Down the most Important Part of Today’s Oil, Gas Drilling

Greeley Tribune:  Fracking, the two- to three-day process of hydraulic fracturing for oil and gas, is perhaps one of the most misunderstood drilling practices, becoming as bad of a word in some circles as a racial slur.

 

Entire countries have banned the process. Some Colorado towns have placed moratoriums to study it further.

Environmentalists storm capitals over it, demanding increased regulations, and oil and gas company employees and officials scratch their heads — they’ve been using the same process in oil and gas drilling for 60 years without widespread incidents.

 

“It’s a perplexing issue,” said Collin Richardson, vice president of operations for Mineral Resources Inc., who opened up a company fracking job last fall to a student tour from the University of Northern Colorado. “People go to a light switch and expect energy to be there, but they don’t think about where it comes from. I don’t think most people understand that without hydraulic fracturing, we wouldn’t have natural gas to provide electricity to our homes or gas in our cars.

Read more: http://bit.ly/1gc41Z7

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oil-and-natural-gas-development  keystone-xl-pipeline  ethanol  renewable-fuel-standard  hydraulic-fracturing  fracking  energy-exports  liquefied-natural-gas  lng-exports  soae-2014 

Mark Green

Mark Green
Posted January 6, 2014

API hosts its annual State of American Energy event on Tuesday at the Newseum in Washington, D.C., and the discussion will focus on choices our country can make to increase energy development, grow jobs and the economy and make us more secure in the world. The event will be streamed live beginning at noon. Join in the conversation on Twitter by using the #SOAE14 hashtag.

The event comes at a time when policymakers are considering important energy issues, some of them framed in recent posts by the National Journal and Politico. At the top of our list of key energy issues:

Keystone XL pipeline

Federal consideration of TransCanada’s application for a cross-border permit passed the five-year mark last fall – which means the Keystone XL could have been built twice in the time the pipeline has been held up by Washington.

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