Energy Tomorrow Blog
Posted December 11, 2018
As debates continue over the Renewable Fuel Standard (RFS) and its ethanol mandates, let’s remember that when the RFS was enacted more than a decade ago it was supposed to jumpstart a commercially viable cellulosic ethanol industry – ethanol made from the leaves, stems and other fibrous parts of a plant.
This has not happened. Far from it. Despite increased mandates under the RFS for cellulosic ethanol, those mandates have dwarfed actual production. The result is a costly proposition for American consumers and an object lesson on what can happen when government tries to use policy to favor a certain technology. Let’s explore the issue.
Posted November 30, 2018
With the Edison Electric Institute celebrating 1 million electric vehicles on U.S. roads with a forum event in Washington, D.C., let’s talk, again, about some EV realities – which is important as the buzz around EVs grows. Let’s discuss subsidies, real consumer costs, emissions and batteries.
Posted November 21, 2018
Recent headlines on natural gas prices may leave Americans feeling whipsawed by marketplace fluctuations (see here and here). So, let’s look at what’s been going on with natural gas this year. But first, four points to keep in mind:Affordable natural gas has saved the average household more than $100 per year in recent years; (2) most consumers are typically insulated from wholesale price variations – the focus of recent news coverage; (3) price increases this month to date are mainly the result of lower inventories coupled with cold weather forecasts that, of course, can change suddenly; and (4) recent price movements in natural gas futures are well within the ranges seen during the resurgence in U.S. energy production
Posted November 20, 2018
Posted November 19, 2018
EPA likely will need to take the lead in rescuing U.S. consumers from the potential negative impacts of the federal ethanol mandate, given the shrinking chance that Congress will pass significant reforms to the broken Renewal Fuel Standard (RFS) program.
That’s the view of the natural gas and oil industry, which continues to warn of the possible consumer risks posed by the RFS, which was launched before the shale energy revolution and has been largely made obsolete by surging domestic production.
Posted November 15, 2018
Earlier this year we pointed out that a roller coaster of emerging economic factors could affect oil markets and, ultimately, consumers – and we were correct.
Rising interest rates, trade and tariff disputes, near decade-high U.S. dollar appreciation and potential financial market uncertainties have become pronounced over the past few months, affecting global crude oil markets and producing the strongest correlation between financial markets and oil prices in years.
Posted October 30, 2018
There has been a recent flurry of news about whether the Trump administration will succeed in easing the rollout of new international rules to power commercial ships with environmentally cleaner fuels.
The main fear is the change of rules could drive up demand and prices for low-sulfur fuels like diesel fuel – and ultimately the costs to consumers and businesses for their motor fuels, transportation, and everything that depends on them.
Posted October 29, 2018
The Trump administration’s plan to push more high ethanol-blended E15 into the nation’s fuel supply doesn’t sit well with U.S. voters – for the consumer reasons we’ve been talking about for months (see here, here and here).
A new national survey of 1,001 registered voters across the country, conducted by Harris Poll, shows bipartisan concern about expanded sales of E15, which contains 50 percent more ethanal than E10 fuel, which is standard in the U.S.
Posted October 10, 2018
As officials at the National Hurricane Center monitor the projected path of Michael (below, as of Wednesday afternoon), here are a few things to know about industry’s preparations and the critically important fuel supply chain.
As with all impactful storms, industry’s focus is first and foremost safety and keeping the market well-supplied, including storm-affected areas. The nation’s fuel supply system is large, geographically diverse and adaptable – and has a history of responses that minimize disruptions.
Posted October 5, 2018
It may seem like there isn’t much “across-the-aisle” agreement in Washington these days, but amid reports the administration wants to facilitate year-round sales of E15 gasoline, a group of 20 Democratic and Republican senators has written to President Trump, criticizing the E15 proposal while urging him to protect consumers and join a meaningful discussion of addressing the broken Renewable Fuel Standard (RFS).
The rumored regulation, which would expand the sale of E15 by waiving certain Clean Air Act (CAA) requirements related to Reid Vapor Pressure (RVP), is a one-sided approach to addressing RFS-related concerns, the senators wrote, which favors only one industry stakeholder.