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 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 14, 2018
The good news is that EPA’s proposed amendments to the 2016 New Source Performance Standards (NSPS) OOOOa rule will continue the rule’s ability to effectively reduce volatile organic compound and methane emissions from all emission sources addressed in the previous administration’s rule. Methane is the primary component of natural gas – a key product for industry. Producers are incentivized to bring that product to consumers, making its capture a top priority from a business standpoint, in addition to the environmental considerations. Unfortunately, the proposed rule includes several missed opportunities, and could ultimately stifle innovative new technologies in emissions detection and increase the cost of energy for Americans.
Posted October 23, 2018
Two stat lines capture the essence of modern natural gas and oil development:
First, the United States produced a record 11 million barrels of oil per day (mbd) in September, 2.2 mbd more than September 2017, according to API’s latest Monthly Statistical Report (MSR). It’s a remarkable output number, given where domestic production was less than two decades ago.
Second point: Just as remarkable is the fact the United States’ world leadership in natural gas and oil production is accompanied by world leadership in cutting greenhouse gas emissions.
Posted October 9, 2018
Posted September 27, 2018
With recent reports indicating that the EPA is moving to facilitate the year-round sale of E15 gasoline – which studies have shown could put consumers at risk – API and American Fuel & Petrochemical Manufacturers (AFPM) this week wrote a letter to President Trump urging the administration not to take actions that could negatively impact refiners.Specifically, EPA is preparing an extension to the one-pound Reid Vapor Pressure (RVP) waiver to E15 fuel, coupled with potentially problematic changes to Renewable Identification Number (RIN) market trading.
Posted September 13, 2018
Let’s push back against a narrative springing up around EPA’s proposed improvements to the 2016 standards on emissions from new natural gas and oil production sources – which the agency says will streamline implementation, reduce duplication with state requirements and decrease unnecessary burdens on domestic energy producers.
First, while API reviews EPA’s proposal, it’s important to note that it appears the rule will continue to protect public health and reduce emissions through standards that are smarter, science-based and that promote greater cost-effectiveness – while industry keeps on delivering the energy Americans use every day.
The narrative is based on a mythology that natural gas and oil companies don’t care about emissions and won’t develop new technologies and innovations to capture more and more emissions unless Washington makes them do it. False and false.
Posted August 21, 2018
EPA’s recent decision not to revisit 2015 ozone standards suggests a couple of points as the agency looks ahead to its scheduled 2020 review of the ozone air quality standards.
First, it’s imperative that EPA build its 2020 review around quality science – for one, to properly consider background levels of ozone and how they affect where the federal government sets the standards. For some parts of the country the 2015 standards were near levels of background ozone – setting up compliance problems for places such as Yellowstone National Park.
Second, on the road to the 2020 review, there should be discussion of implementation relief – from EPA or directly by Congress legislatively.
Posted May 12, 2016
We’ll say it again: Methane emissions are falling. And they’ll continue doing so because industry wants to capture as much of the primary component of natural gas as possible, for delivery to consumers.
So that’s the context for EPA’s regulatory initiative. Basically, the agency looked at the energy landscape – one of surging production but also declining emissions – and determined the next step should be more regulation. The resulting new rules could hinder America’s shale energy revolution, one that has helped lower U.S. energy-related carbon emissions 12 percent below 2005 levels, allowing the United States to lead the world in reducing carbon emissions.
Posted January 29, 2015
With EPA opening public hearings (subscription required) on its proposed new ground-level ozone standards, it’s important that we not let some key facts get lost in the wave of comments and anecdotes that results when there’s an open microphone available.
At issue is EPA’s plan to make more restrictive the National Ambient Air Quality Standard for ozone, from the current 75 parts per billion (ppb) to between 65 and 70 ppb. The agency is collecting input until mid-March before finalizing the rule this fall.
We’ve made the case before that the existing standards are working, that our air is getting cleaner and will continue to do so with the current rule. In short, there’s no good reason to make the standards more stringent. That’s what the science shows, as experts detailed at EPA’s hearing in Washington, D.C. (here and here). Indeed, EPA’s own data shows that ozone levels have fallen 33 percent since 1980, including 18 percent since 2000.