Energy Tomorrow Blog
Posted August 15, 2014
Posted June 19, 2014
Bloomberg: North Dakota, which yesterday became just the fourth state to record oil production above 1 million barrels a day, could see even stronger growth over the summer as improved weather makes life easier for drilling crews.
Output increased to 1,001,149 barrels a day in April, the state’s Department of Mineral Resources reported yesterday. Texas, California and Alaska have crossed the million-barrel mark. Only Texas remains above the state, at almost 3 million barrels a day.
April oilfield work was hampered by heavy rain that shut roads and strong winds that closed down operations. Crews completed 200 wells during the month, and another 600 are already drilled and just waiting on hydraulic fracturing, or fracking. Better weather in the summer months should allow more new wells to start gushing oil.
Posted June 18, 2014
Almost half of 2014 is behind us, and yet EPA still hasn’t finalized the ethanol requirements for this year. This is not a recipe for predictability and reliability in the gasoline markets, and the administration’s inability to meet the congressionally-mandated deadline of November 30th is a clear example of how unworkable the RFS is.
Posted April 11, 2014
Last month EPA implemented new gasoline regulations requiring the last microscopic bits of sulfur to be removed from fuel. The Tier 3 standard is likely to hit consumers and burden the economy while providing, at best, negligible benefit.
Writing for the Jefferson Policy Journal, Paul Driessen makes a number of important points about the potentially onerous effects of the new regulation. Driessen starts by underscoring how unnecessary the new standard is.
Posted December 2, 2013
As EPA opens a 60-day comment period on its proposals for next year’s required ethanol use levels under the Renewable Fuel Standard (RFS), below is a light-hearted reminder that higher-ethanol blend fuels like E15 – which ethanol supporters advocate as a way to meet RFS mandates – pose significant risks for small engines.
Posted October 25, 2013
Despite indications EPA may lower its 2014 requirement for ethanol use under the Renewable Fuel Standard (RFS) – acknowledging the existence of the refining “blend wall” – volumetric levels the agency reportedly is discussing don’t go far enough, and larger concern over the dysfunctional, irreparably damaged RFS would remain.
API Downstream Group Director Bob Greco talked about what EPA might do with next year’s requirements, which could be unveiled soon, during a conference call with reporters.
Posted October 24, 2013
Posted October 24, 2013
Posted July 30, 2013
The Energy Policy Research Foundation, Inc. (EPRINC) released a study last week highlighting the consequences of exceeding the blendwall:
“The current regulatory regime, if not reformed in some substantial manner, will likely spike gasoline prices in 2014, as federal mandates take the U.S. gasoline pool significantly above 10 percent ethanol by volume.”
The risk mentioned here isn’t coming as a surprise. We’ve described the potential consequences of the RFS and highlighted the real costs of the program here, here, and here. EPRINC’s study brings all of these problems into focus, underscoring the immediate consequences that could face consumers in 2014.
Posted July 18, 2013
The history of modern crude oil prices includes a number of instances where historical events have accompanied dramatic price shifts. Simply: Events that impact or could impact supply affect the global crude oil market. And, because the cost of crude is the main driver of gasoline prices – currently about 66 percent