The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

oil-and-gas  renewable-fuel-standard  kentucky  regulation  states2016 

Mark Green

Mark Green
Posted August 25, 2016

As the United States’ third-largest coal-producing state, Kentucky gets about 87 percent of its electricity from coal-fired generation. Yet natural gas use is growing. According to the U.S. Energy Information Administration, net electricity generation from natural gas has grown more than 460 percent in Kentucky since 2006. Electricity generation is now the state’s second-largest natural gas consuming sector.

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vote4energy  arkansas  natural-gas  renewable-fuel-standard  states2016 

Mark Green

Mark Green
Posted August 23, 2016

Among the country’s top 15 states in overall energy production, Arkansas had a more than 400 percent increase in natural gas output from 2005 through 2015 – thanks to safe hydraulic fracturing and horizontal drilling in shale and other tight-rock formations. By itself Arkansas accounted for 3.5 percent of U.S. gas production. In a real sense, the state is a snapshot of the U.S. energy renaissance, launched by fracking.

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renewable-fuel-standard  consumers  ethanol  e1534 

Sabrina Fang

Sabrina Fang
Posted August 9, 2016

Thanks to an energy renaissance here in the United States, Americans driving to their summer destinations have been enjoying low prices at the pump. To keep this progress going, we need to end harmful policies that could raise the cost of energy and negatively impact millions of vehicles on the road.

As the EPA works to finalize its 2017 Renewable Fuel Standard volumes, API is launching a new multi-faceted advocacy campaign that will include TV and online advertising. Our campaign will focus on how higher ethanol mandates can hurt consumers, potentially raise costs and possibly void automobile warranties.

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renewable-fuel-standard  rfs34  consumers  ethanol  epa34  blend-wall 

Mark Green

Mark Green
Posted June 27, 2016

Two more results from the new Harris Poll on what Americans are thinking about key energy issues.

First, 77 percent of registered voters say they’re concerned about government requirements that would increase the amount of ethanol in gasoline. Second, 73 percent agree that federal government regulations could contribute to increased costs for gasoline to consumers.

Both results basically point fingers at the federal Renewable Fuel Standard (RFS) – which indeed is Washington pushing for more ethanol in gasoline, which experts and studies warn could impact consumers at the gasoline pump and at the repair shop.

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renewable-fuel-standard  rfs34  ethanol  epa34  e1534  e8534  consumers 

Mark Green

Mark Green
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.

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renewable-fuel-standard  rfs34  gasoline-prices  epa34  economic-impacts  e1534 

Mark Green

Mark Green
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. 

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renewable-fuel-standard  rfs34  consumers  epa34  ethanol  e1534  blend-wall 

Mark Green

Mark Green
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.


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renewable-fuel-standard  rfs34  ethanol  epa34  vote4energy 

Mark Green

Mark Green
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.” 

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renewable-fuel-standard  rfs34  ethanol  blend-wall 

Mark Green

Mark Green
Posted April 6, 2016

We can sum up new polling on Americans’ perceptions of the federal Renewable Fuel Standard (RFS) and its potential impact on their lives in a word: concerned.

Make that very concerned – about potential damage to their vehicles, about the broad economic effects of breaching the ethanol “blend wall” and about diverting corn away from the global food supply to manufacture ethanol.

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cellulosic-biofuels  ethanol  renewable-fuel-standard  rfs34 

Mark Green

Mark Green
Posted April 4, 2016

When Congress created the Renewable Fuel Standard (RFS) more than a decade ago, lawmakers hoped the federal fuels program would spur development of a domestic biofuels industry that would help reduce oil imports with millions and millions of gallons of home-grown ethanol – with a particular focus on increasing volumes of cellulosic biofuel made from corn stover, wood chips, miscanthus or biogas. By 2022, it was expected that 16 billion gallons of cellulosic biofuel would be produced, but a couple of other things happened instead.

First, the U.S. energy revolution happened. Our crude oil imports fell mostly because of surging domestic oil production, not the RFS. Through safe hydraulic fracturing and horizontal drilling, American output grew from less than 6 million barrels per day to more than 9 million barrels per day – the growth in domestic production more than accounting for the reduction in net imports.

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