The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

crude-oil-exports  gasoline-prices  consumers  domestic-oil-production  eia34 

Mark Green

Mark Green
Posted September 9, 2016

Looking back, the weight of scholarship and analysis had predicted that, rather than cause higher pump prices here at home as some claimed, exporting domestic crude would put downward pressure on U.S. gasoline prices. In fact, that’s what we’re seeing – abundant crude oil supply benefiting American consumers. U.S. crude exports are part of that market dynamic – while also helping to support domestic production and strengthening America’s balance of trade.

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oil-and-natural-gas  economic-benefits  consumers  emission-reductions  climate 

Kate Wallace

Kate Wallace
Posted August 30, 2016

The United States leads the world in oil and natural gas production – and also reduction of carbon emissions. This global leadership largely results from private investment and innovation by the oil and natural gas industry, which has developed the advanced technologies needed to drive the American energy renaissance of the past decade. API President and CEO Jack Gerard discussed these issues and others during a conference call with reporters.


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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  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  e1534  ethanol  consumers 

Jack Gerard

Jack Gerard
Posted March 3, 2016

The RFS was in the spotlight again last week, as the Senate Environment and Public Works Committee conducted an oversight hearing on the policy. It’s a law that certainly invites scrutiny due to the significant and wide-ranging damage it causes. Besides raising the consumer price index for food by 25 percent since 2005 because ethanol production has diverted nearly 40 percent of the U.S. corn crop from food to fuel, the policy is also bad for drivers and the economy.

In testimony before the committee, Lucian Pugliaresi, president of the Energy Policy Research Foundation, Inc. (EPRINC), shared EPRINC’s conclusion that continuing to administer the RFS as written “would increase gasoline prices from approximately 30 cents to 50 cents a gallon” and cautioned Congress to address “the risk to economic recovery” this poses. 

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renewable-fuel-standard  rfs34  ethanol  economic-impacts  consumers 

Mark Green

Mark Green
Posted February 23, 2016

When Congress and the president acted late last year to end the decades-old ban on domestic crude oil exports, Washington showed it could generate the consensus to update energy policy so it matches America’s new energy reality, a reality of abundance created by surging domestic oil production. The same kind of change is needed on the broken Renewable Fuel Standard (RFS).

We saw how the crude oil exports ban buckled under the weight of economic research and reason, both of which argued that allowing U.S. oil to reach global markets would be good for America and American consumers. In the case of the RFS, there’s a compelling opportunity to protect U.S. consumers from potential harm wrought by a bad public policy.

Step No. 1 is a scheduled hearing this week on the RFS by the Senate Environment and Public Works Committee. Witnesses include EPA and U.S. Energy Information Administration officials. Frank Macchiarola, API group director of downstream and industry operations, discussed the stakes in the RFS debate during a conference call with reporters. The main point: The RFS is mismatched for the new era of U.S. energy abundance.

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crude-oil  taxes  economic-impacts  consumers  president-obama 

Mark Green

Mark Green
Posted February 16, 2016

The president’s $10 per barrel oil tax proposal has been out for about a week now, and the analysis from a number of experts – both in terms of politics and economics – could be boiled down to the social media acronym “smh,” which stands for “shaking my head.”

Political analysis first: “The president perennially proposes repealing the oil industry tax credits which Congress annually ignores,” Benjamin Salisbury at FBR Capital Markets toldBloomberg. “It seems overwhelmingly likely that this fee meets the same fate.” ClearView Energy Partners’ Kevin Book said there are “near-zero odds that the Republican-led Congress will grant the president’s request.”

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renewable-fuel-standard  rfs34  ethanol  consumers  epa34 

Jack Gerard

Jack Gerard
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 associationsgrocersproducers of poultry, pork and beefenvironmental non-profits and anti-hunger groups have been saying for years.

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