Energy Tomorrow Blog
Posted June 28, 2013
There is a classic xkcd cartoon where a one of the characters says they can’t come to bed because “Someone is wrong on the internet.” Though the options for who exactly that someone was are almost unlimited, statistically there is a good chance the character was referring to Bob Dinneen. Witness this tweet:
Posted June 24, 2013
AP reports on the debate surrounding the Renewable Fuel Standard and E15 gasoline after a recent ruling by the Supreme Court. "The ever increasing ethanol mandate has become unsustainable, causing a looming crisis for gasoline consumers," API's Bob Greco said. "We're at the point where refiners are being pressured to put unsafe levels of ethanol in gasoline, which could damage vehicles, harm consumers and wreak havoc on our economy."
Houston Chronicle – Energy Surge Spreads Its Wealth Around City
Houston is arguably the center of American energy. With the surge in domestic energy, the city’s business sector – and revenues – has grown over the last few years. The Chronicle highlights the “vibrant metropolitan area.”
Posted May 23, 2013
Gasoline prices have been rising with the approach of the summer driving season – up to about $3.66, according to AAA – pushed there by rising crude oil prices. U.S. consumers need help. And they could get it – if the administration pursued a number of energy policies to put downward pressure on global crude costs, while abandoning other choices that could harm consumers.
API Chief Economist John Felmy’s reporter briefing Thursday focused attention on two paths: one that will increase domestic production of oil and natural gas and one that won’t. Unfortunately, the administration – via proposals to increase energy taxes and a new wave of questionable regulation – looks headed down the wrong path, a recipe for disaster for American energy:
Posted May 14, 2013
Ethanol advocates often assert that ethanol costs less per gallon than gasoline while trying to justify the Renewable Fuel Standard (RFS). While it’s true that on a gallon-to-gallon basis ethanol historically has been cheaper than gasoline, ethanol contains far less energy than gasoline and therefore has cost consumers more to travel the same distance, as I pointed out (here, here and here). Look at the graphics below, produced by EPA and the Energy Department: The real costs to consumers, measured in fuel economy, has been significant.
Posted April 30, 2013
Bloomberg – Approve Keystone Now
Bloomberg’s editorial board argues that rather than encouraging more study on the Keystone XL pipeline, President Obama should “now prod the State Department to move as fast as possible” to approve the project.
AEI Carpe Diem Blog – Texas Oil Output Continues
Mark J. Perry writes, “The exponential increase in Texas oil production over the last several years is nothing short of phenomenal, and is a direct result of … game-changing drilling technologies in America that have now revolutionized the nation’s production of shale oil.”
Posted April 19, 2013
It’ll take more than 60 seconds to debunk the main untruths in Fuels America’s video, “The Truth Behind High Gasoline Prices in 60 Seconds” – but then fact often is more complicated than fiction.
First, a few words about Fuels America. It’s a collection of groups committed to “protecting” the flawed Renewable Fuel Standard (RFS), with its broken mandates for increasing use of ethanol. The organization that includes the Renewable Fuels Association (RFA) and major corn growers is attacking America’s oil and natural gas industry – ironically, ethanol’s biggest customer.
Posted March 26, 2013
Posted March 22, 2013
Paying for Ethanol's Infrastructure. Ethanol supporters have a blog post up suggesting that if the oil and natural gas industry simply invested in the “modern fuel distribution infrastructure needed to dispense greater than E10 blends,” industry’s issues with unworkable ethanol mandatesunder the Renewable Fuel Standard would vanish.
Maybe in some alternate universe – one that’s disconnected from economic reality, real costs and operating margins. Don’t take our word for it. Take a look at this letter to the Wall Street Journal from Dan Gilligan, president of the Petroleum Marketers Association of America, the folks who own the gasoline stations, convenience stores, heating oil businesses, truck stops and other companies that invest in and market petroleum products.
Posted March 12, 2013
We expect attacks from ethanol boosters over E15 gasoline, fuel that contains 15 percent ethanol, because their stated mission is to promote more ethanol use. But, unfortunately for them, the science is clear; E15 has been shown to cause damage in some engines and fuel systems.
Pointing this out, citing tests by the Coordinating Research Council (CRC), an organization that’s the gold standard in terms of automotive research, has drawn some fantastic claims, most recently that the E10 (10 percent ethanol) “blend wall” – the point at which there isn’t enough E10 being sold to accommodate all of the ethanol mandated by federal law – doesn’t actually exist, more on that below.
Posted February 22, 2013
Gasoline prices have been climbing. The U.S. Energy Information Administration (EIA) reports:
The average U.S. retail price for regular motor gasoline has risen 45 cents per gallon since the start of the year, reaching $3.75 per gallon on February 18. Between January 1 and February 19, the price of Brent crude, the waterborne light sweet crude grade that drives the wholesale price of gasoline sold in most U.S. regions, rose about $6 per barrel, or about 15 cents per gallon.