Skip to main content

Energy Tomorrow Blog

Overcoming the Hurdles of Tariffs

trade  consumers  energy  economic impacts 

API CEO Mike Sommers

Mike Sommers
Posted June 13, 2019

The administration’s back-and-forth trade policies and near-constant threat of tariffs have left many American businesses and consumers uneasy.

We received some good news last week as President Trump ultimately decided against imposing a new 5 percent tariff on all imported goods from Mexico. But while trade with Mexico might be on even ground for now, the already tense U.S.-China trade relations have shown no sign of letting up. Now, the Administration has threatened a fourth round (subscription publication) of tariffs on Chinese imports, this time on List 4 goods, if a trade deal with China is not reached at the G20 summit later this month.

Let’s take a moment to remember that U.S. consumers are the ones hurt by tariffs, which are a tax on goods that millions of U.S. families and businesses use every day. 

More »

GAO Report – Another Reason to Sunset the RFS

ethanol  renewable fuel standard  consumers  gasoline prices  emission reductions 

Jessica  Lutz

Jessica Lutz
Posted June 11, 2019

We’ve warned before (see here, here and here) that the broken Renewable Fuel Standard (RFS) and its mandates for ever-increasing ethanol use put consumers at risk. And that the administration’s recent decision to allow summer sales of E15 fuel – a blend containing 50 percent more ethanol than the E10 gasoline that’s widespread across the country – is an ineffective approach to addressing concerns with the RFS that will only serve to make things worse. Now, we can add another report to the long list of evidence that the RFS needs to be sunset – this time coming from the non-partisan U.S. Government Accountability Office (GAO).

The GAO recently reviewed the effects of the RFS and found that requiring the use of corn-based ethanol and biodiesel in gasoline supplies hasn’t lowered pump prices or significantly reduced greenhouse gas emissions – two of the main goals of the flawed RFS program. In fact, the review finds that gas prices outside of the corn-rich Midwest likely increased because of the program. To make matters worse, the review also found that there has been little, if any, reduction in greenhouse gas emissions – a main selling point used by proponents to justify the program. 

More »

Administration Ignores Risk to Consumers, Pushes More E15 into Fuel Supply

renewable fuel standard  consumers  ethanol  vehicle 

Jessica  Lutz

Jessica Lutz
Posted June 3, 2019

The administration’s decision to allow summer sales of E15 fuel – a blend containing 50 percent more ethanol than the E10 gasoline that’s widespread across the country – is a disappointing and ineffective approach to addressing concerns with the broken Renewable Fuel Standard (RFS).

EPA’s rulemaking that extends the RVP waiver, effectively lifting a ban on summertime E15 sales, only worsens risks for U.S. consumers – given repeated warnings that pushing more E15 into the fuel supply could harm the vast majority of vehicles on the road that aren’t designed to use it, as well as engines in motorcycles, boats and lawn equipment for which E15 is incompatible. All to help farmers struggling under the weight of the administration’s own harmful trade tariffs.

It may seem obvious, but apparently it needs stating: EPA should be most concerned about the interests of U.S. consumers as it forms policy, not cleaning up messes caused by the administration’s flawed trade policy.

More »

Affordable Natural Gas and Bettering Low-Income Americans’ Lives

natural gas  heat  consumers  energy costs  affordable energy 

Mark Green

Mark Green
Posted May 29, 2019

The headline of the opinion piece in the Orange County Register caught my eye – and should get the attention of everyone in this country:

“Fracking saves low-income Americans’ lives”

The article is based on research published earlier this year, which calculated that lower heating costs associated with surging domestic natural gas production averted 11,000 winter deaths in the U.S. each winter from 2005 to 2010.

Read on for details, but this research makes the critically important connection between abundant energy and Americans’ well-being.


More »

Study: Electric Vehicle Tax Credit is High Cost, Low Reward

electric vehicles  subsidies  consumers  tax payer 

Scott Lauermann

Scott Lauermann
Posted May 21, 2019

Having already shelled out $2.2 billion for the federal tax credit for purchases of electric vehicles (EV) between 2011 and 2017, U.S. taxpayers could see that cost increase seven-fold over the next decade – while yielding negligible results, according to a new study.

Coupled with the fact that upper-income households have bought most of the EVs sold in the U.S. (and benefited from these tax subsidies), the report continues to raise questions about the EV subsidy and legislation that would expand it.

More »

Price Spikes in New England Limited by Natural Gas – Just Not Ours

consumers  natural gas  liquefied natural gas  imports  marcellus  utica shale 

Jessica  Lutz

Jessica Lutz
Posted May 17, 2019

It seems like each winter we see consumers in New England suffering not just from freezing temperatures but also the highest energy prices in the country (see here and here) – largely because there’s not enough natural gas infrastructure to serve the region during periods of peak winter demand. This past winter, the news was a little bit better.

Natural gas prices generally follow seasonal patterns and tend to rise in the winter. For example, the U.S. Energy Information Administration (EIA) has suggested

that liquefied natural gas (LNG) imports  helped to moderate energy price spikes in the region this year. ...

Still, domestic infrastructure constraints in New York and New England mean that residents remain faced with relatively high and uncertain energy prices plus the possibility of winter shortages – not to mention the unnecessary stress those conditions put on the region’s power grid. 

More »

Connecticut Officials Should Advance Natural Gas-Fueled Power Plant

natural gas  consumers  connecticut  electricity 

Mark Green

Mark Green
Posted May 14, 2019

Next month the Connecticut Siting Council is scheduled to hold an important vote on a proposed natural gas-fueled power plant near Killingly, the Killingly Energy Center. The plant should get the council’s go-ahead, as it would help meet growing consumer demand while supporting badly needed stability in the regional power grid.

The plant would produce enough electricity for 500,000 homes. In addition to generating electricity, the facility would generate $110 million in local tax revenue over the next two decades while helping the state advance its climate goals (more on that below).

Most importantly, consumers would get needed help. 

More »

Tariffs Continue to Hurt U.S. Consumers, Not China

trade  china  consumers  taxes 

Jessica  Lutz

Jessica Lutz
Posted May 8, 2019

We can’t say it enough: U.S. consumers, not China, are paying the costs of the administration’s tariffs on Chinese goods – which the administration says will increase on Friday to 25 percent on $200 billion in goods, up from the current 10 percent.

As we’ve noted here, here and here, Americans are the ones hurt by tariffs, which essentially are a tax on consumer goods that millions of U.S. families use.

More »

Summer Driving and Gasoline Prices

consumers  gasoline prices  fuels  gasoline taxes 

Dean Foreman

Dean Foreman
Posted May 1, 2019

With summer driving season almost here, nationwide average gasoline prices were $2.88 per gallon as of April 30, according to the American Automobile Association, identical to what they were one year ago when adjusted for price inflation. This good news for consumers is due, at least in part, to record-breaking domestic oil production, which has put downward pressure on global prices for crude oil, the main factor in determining prices as the fuel pump.

While the current price may be the same when you pull up to pump, some notable things have changed behind the scenes.


More »

U.S. LNG Accelerates Shifts in the Global Marketplace

liquefied natural gas  lng exports  consumers  global markets 

Dustin Meyer

Dustin Meyer
Posted April 26, 2019

Over the past few weeks, we’ve published a series of posts on the United States’ emergence as a major global natural gas exporter, including discussion of the benefits both at home and abroad (see here and here).

In this post, we’ll look at how the business of liquefied natural gas (LNG) is changing in exciting ways—ways that give customers around the world unprecedented flexibility and access to clean and reliable natural gas.

We’ll see that while some of these trends have been in motion for years, it’s been the introduction of U.S. LNG into the market that has really accelerated this shift. With multiple project developers pursuing a wide range of structures and technologies, it’s clear that the U.S. is once again at the forefront of innovation in this critical part of the world’s energy sector.


More »