Posted July 27, 2015
More tools in the debate over the Renewable Fuel Standard (RFS). Fill Up On Facts.com has posted four short videos highlighting some of the disconnects between the original reasoning behind the RFS and the world we live in today – which is why the program should be fundamentally revamped, if not repealed.
Video No. 1 discusses the potential risks to vehicles from using E15 fuel – seen by some as a way to absorb all of the ethanol mandated by the RFS above what can safely be blended as standard E10 gasoline – the ethanol “blend wall.”
Other videos show that the founding assumptions behind the RFS are disconnected from today’s reality.
Posted July 21, 2015
With another congressional hearing on the Renewable Fuel Standard (RFS) scheduled this week, a couple of glimpses behind the curtain at EPA help explain why the RFS is dysfunctional and needs to be repealed or dramatically overhauled.
Glimpse No. 1 comes from a U.S. Senate subcommittee hearing last month, chaired by Sen. James Lankford of Oklahoma. The witness was EPA’s Janet McCabe, acting assistant administrator for the office of air and radiation. Tune in at about the 1-hour, 24-minute mark of the archived video to see Lankford’s discussion with McCabe about how EPA sets annual ethanol use requirements under the RFS.
The overriding issue is the ethanol “blend wall” – the point where the RFS requires blending more ethanol into the national fuel supply than can be used in E10 gasoline. At that point some think that higher ethanol-blend fuels like E15 and E85 will help meet RFS ethanol mandates. But E15 can cause damage to engines and fuel systems in vehicles that weren’t designed to use it – as well as outdoor power equipment, boats and motorcycles. And E85 is less energy-dense than standard gasoline – getting fewer miles to the gallon. It represents a tiny fraction of overall gasoline demand, a strong signal from consumers.
Posted July 17, 2015
Lots of people are concerned that increasing the presence of E15 in the nation’s fuel supply could have adverse impacts on devices powered by gasoline.
Studies show E15 can damage engines and fuel systems in cars and trucks that weren’t designed to use it. (Click here for a matrix that shows most vehicles on the road today aren’t recommended for operating on E15 by manufacturers.) Motorcycles and outdoor power equipment could be negatively affected by using E15, too.
That’s a concern of marine engine manufacturers and boating enthusiasts as well.
Posted July 16, 2015
Motorcycles aren’t designed to use higher ethanol-blend fuels like E15, and the American Motorcyclist Association (AMA) warns that using E15 in a motorcycle can void its warranty. There’s serious concern about inadvertent misfueling, as well as the possibility that the push for more E15 in the fuel supply could out E0 (gasoline containing zero ethanol).
Posted July 15, 2015
While the potential negative impacts of E15 fuel on machines that weren’t designed to use it – from vehicles to outboard marine engines and weed-eaters – isn’t funny, some humor can help illustrate important points in that key public policy debate.
API has three new cartoons that take a light-hearted look at the potential harm from using E15 – containing up to 50 percent more ethanol than E10 gasoline that’s standard across the country – in outdoor equipment, boat motors and motorcycles. Today, outdoor power equipment.
Kris Kiser, president and CEO of the Outdoor Power Equipment Institute (OPEI), has warned against using E15 in lawnmowers and other outdoor gear because they can cause permanent damage.
Posted June 26, 2015
API Downstream Group Director Bob Greco traveled this week to EPA’s field hearing on the Renewable Fuel Standard (RFS) in Kansas City, to detail concerns over the flawed program, with its market-distorting mandates for ever-increasing use of ethanol in the national fuel supply. His remarks, as prepared for delivery:
The Ethanol Blend Wall
Our members’ primary RFS concern is the ethanol blend wall. Serious vehicle and retail infrastructure compatibility issues exist with gasoline containing more than 10 percent ethanol. We are encouraged that EPA has proposed to address this reality.
Gasoline demand increases projected in 2007 did not materialize, and Congress granted EPA the authority to balance its aspirational goals with reality. API supports EPA’s use of its explicit RFS waiver authorities in 2014, ‘15, ‘16, and beyond to avoid negative impacts on America’s fuel supply and to prevent harm to American consumers.
Posted June 26, 2015
Forbes (Clemente) – The short answer to the question posed is … a lot. Or at least way more than many groups and people out there want you to believe. Today, the world is swimming in oil, and prices have been sliced in half over the past year. “Peak oil” theory for production is predicated on the work of legendary geologist M.King Hubbert, who in 1956 employed his now famous/infamous “Hubbert curve” to predict U.S. petroleum production would peak in 1970. For many years he appeared to be correct, but the “shale revolution” is on the verge of proving him premature.
False pessimistic predictions regarding future oil production dates back to the beginning of the modern oil era in the mid-1850s, and can quickly ensnare the best experts with the most resources available. To illustrate, the Joint Operating Environment 2010 report (“the JOE report”) from the U.S. Joint Forces Command, the leader for the transformation of U.S. military capabilities from 1999-2011, projected a 10 million b/d global supply shortfall for 2015. Now, just five years later, we have a 2-3 million b/d surplus.
Posted June 24, 2015
Houston Chronicle – The oil industry’s leading trade group on Tuesday kicked off its 2016 political campaigning, with plans to air issue advertising and hold events in battleground states.
The American Petroleum Institute launched its “Vote 4 Energy” with a pledge to stay above the partisan fray while ensuring that energy policy is part of the political discussion leading up to the November 2016 elections.
The group released a Wood Mackenzie study that it said illustrated the stark choice facing voters, by modeling how two different regulatory approaches to oil and gas would affect domestic production of those fossil fuels and economic activity related to them.
Under a relatively hands-off scenario with “pro-development” policies, the United States would gain 2.3 million U.S. jobs and $443 billion in economic activity by 2035, according to the API-commissioned analysis. Oil and natural gas production, meanwhile, would jump by 8 million barrels of oil equivalent per day, the study predicted.
Posted June 19, 2015
Energy & Environment Daily – Supporters of ending the ban on crude oil exports are mounting a full-court press to win over wary lawmakers, while keeping a close eye on global markets and the calendar.
Export backers in recent months have cited both national security and economic arguments as they look to line up the votes to repeal the decades-old ban. Earlier this week at a speech at the U.S. Energy Information Administration annual conference, Continental Resources Inc. founder Harold Hamm warned that maintaining the ban would cause U.S. production to fall by 1 million barrels a day (Greenwire, June 16).
EIA's own data from earlier this month pegged U.S. oil production at 9.6 million barrels per day in May, but predicted that amount to "generally decline" until early 2016 before picking up again.
However, EIA's latest forecast also noted the highest average monthly price of 2015 for the global oil benchmark -- Brent crude, which rose $5 a barrel in May. At the same time, U.S. average gasoline prices rose to $2.72 last month, a 25-cent increase over April and the highest of the year so far.
Posted June 18, 2015
SNL – Accusing OPEC of manipulating crude oil prices, the founder, chairman and CEO of Bakken Shale pioneer Continental Resources Inc. on June 16 detailed arguments for lifting the U.S. ban on oil exports, saying exports would rejuvenate a flat-lining oil industry while lowering domestic gasoline prices.
Speaking to a Washington, D.C.-centric crowd at the U.S. Energy Information Administration's 2015 Energy Conference in Washington, Harold Hamm said the combination of North Dakota's Bakken Shale and Texas' Eagle Ford Shale and "new" Permian shales — "Cowboystan" — provides the nation with more than enough production and reserves to permit exporting light, sweet crude oil.
"Horizontal drilling has transformed" oil and gas production in the U.S. to where the country "reaches energy independence" by 2020 and "we can get to the point where we can produce 20 million barrels per day," more than double what the U.S. has produced in recent months, according to the EIA.
"Only in America" could Cowboystan happen, Hamm said, because of the "three Rs: rigs, rednecks and royalties."