Posted June 15, 2016
Posted June 10, 2016
We often hear proponents of the federal Renewable Fuel Standard (RFS) argue that mandating increasing use of ethanol in the nation’s fuel supply is about consumer choice. This view is reflected in some of the news coverage of this week’s RFS public hearing in Kansas City.
Yet, when you look at the marketplace and the fuels consumers actually want, the RFS represents restricting choice, not expanding it.
Posted May 27, 2016
When you head out for your Memorial Day drive, consider the current price of gasoline – the U.S. average retail price of $2.30 a gallon, which the U.S. Energy Information Administration (EIA) says is 47 cents lower than at the same time last year and the lowest average price just before a Memorial Day weekend since 2009.
Now, let’s all thank the U.S. energy revolution, which is playing a big role in consumer benefits, like those seen at the pump. EIA notes that lower gasoline prices reflect lower crude oil prices. And the global crude market wouldn’t be where it is without higher U.S. crude production.
Posted May 18, 2016
One unsettling aspect of the federal Renewable Fuel Standard (RFS) is that for some time it has appeared – from public statements anyway – that EPA considers the program an ongoing experiment, testing the ability of government policy to change or modify the behavior of free markets and the fueling choices of individual consumers, with consumers as the guinea pigs.
The results were logged in long ago: Flaws in the RFS and EPA’s management of the program mark it for repeal or significant reform. RFS mandates for increasing ethanol use in the nation’s fuel supply threaten breaching the ethanol “blend wall,” risking impacts to the broader economy and consumers’ wallets.
Just as unfortunate is EPA’s apparent lack of concern for U.S. consumers –reflected in the agency’s proposals for 2017 volume levels, which will test the blend wall, the point where required use of ethanol in the fuel supply exceeds the safe level of 10 percent.
Posted April 25, 2016
API’s Vote4Energy event earlier this month unveiled a number of energy policy recommendations for the Democratic and Republican platform-writing committees. Let’s focus on one – a call for the repeal or significant reform of the flawed federal Renewable Fuel Standard (RFS).
We’ve posted on a number of issues with the RFS, which range from the negative economic impacts that could result from breaching the “blend wall” to possible risks to vehiclesfrom using higher ethanol-blend fuel E15, to the program’s failure to establish a viable domestic cellulosic biofuels industry – one of the main reasons the RFS was created in the first place. Americans are clued into the RFS’ shortcomings and are concerned – reflected in recent polling. API’s Frank Macchiarola, group director for downstream and industry operations:
“Since the inception of the ethanol mandate a decade ago, the United States has undergone an energy transformation from a nation of energy dependence and scarcity to one of energy security and abundance. It is well past time to reform outdated energy policies to reflect the energy realities of today and tomorrow. … Simply stated, this is bad public policy that creates a potential harm to the American consumer. And, it must be fixed. The American people agree.”
Posted March 25, 2016
To understand why the Renewable Fuel Standard (RFS) must be repealed or significantly reformed, start at the “blend wall.”
The ethanol blend wall is where – because of the RFS’ mandates – more ethanol must be blended into the nation’s fuel supply than can be absorbed as E10 gasoline – gasoline containing up to 10 percent ethanol, which is standard across the country. Put another way, when ethanol makes up more than 10 percent of the total U.S. fuel mix, you’ve breached the blend wall.
At that point refiners have few options. They can produce E15 and E85, fuels containing higher volumes of ethanol, or they can comply with the RFS by reducing the amount of fuel supplied to the domestic market. Neither is a good choice for American consumers.
Posted March 10, 2016
When EPA announced a push for additional regulation on methane emissions from new oil and natural gas operations late last year, we said it looked like a solution in search of a problem – especially considering the agency’s own data showing that since 2005 methane emissions from hydraulically fractured natural gas wells had fallen 79 percent.
Regulators gonna regulate. And then regulate some more.
With the Obama administration’s announcement that it wants to regulate methane emissions from existing oil and gas sources – again, where remarkable reductions already are happening – shows EPA and the White House much more concerned about extreme agendas than the needs of American consumers.
Posted February 12, 2016
What if we had a market-based approach for reducing carbon dioxide emissions – gifted to the United States because of its unique combination of abundant energy resources, technological advances and know-how – that not only would yield CO2 reductions at world-leading levels but also would strengthen our economy and security? And all at potentially less cost than the mandates under the CPP?
OK, it wasn’t an altogether serious question, because that approach and the progress it has generated actually exist. Progress on emissions and energy has come from America’s ongoing energy revolution, a renaissance fueled by vast shale reserves and driven by safe hydraulic fracturing and advanced horizontal drilling.
Posted January 27, 2016
If the Renewable Fuel Standard (RFS) were a candidate in this election year, its track record would invite landslide defeat.
Editorial boards of major newspapers are now echoing what a diverse coalition of restaurant associations, grocers, producers of poultry, pork and beef, environmental non-profits and anti-hunger groups have been saying for years.
Posted January 20, 2016
Last week we made the point that America’s ongoing energy revolution is the main reason the United States is the world’s leading producer of oil and natural gas – a renaissance that is reducing oil imports and benefiting consumers in the form of lower prices at the pump. The same energy surge also is a leading reason the U.S. is leading the world inreducing carbon pollution.
These points argue for sustaining and growing domestic production – instead of trying to “transition away” from it, as the president said during last week’s State of the Union address. Turning our backs on vast public oil and gas resources – instead of safely developing them – would throw away a generational opportunity to strengthen America’s energy security, lift the economy, help U.S. consumers and aid friends overseas. It’s a shortsighted approach – especially when the U.S. model of increased domestic production, economic growth and emissions reduction is already working.
Safe, responsible hydraulic fracturing is the engine of America’s energy revolution.