26-04-2012

Refinery closures signal need for a course correction on energy regulation, API says

API Group Director of Downstream Bob Greco testified about the importance of a strong U.S. refining sector and called for better regulatory policies based on sound science during a hearing by the U.S. Senate Joint Economic Committee to address recent refinery closures in the Northeast.

“We need sensible regulations, fair tax policies, and greater access to America’s ample natural resources from which our refined products are made,” said Greco. “Regulations and public policies that are based in sound science are critical to the refining sector’s ability to provide reliable and stable supplies of affordable fuels.”

Greco said that even though some refineries have closed, many others have expanded in recent years to meet our nation’s needs.

“We are fortunate that the industry’s prior investments in its refineries have allowed it to manage the demand for providing fuels that American’s rely on,” Greco said.

Greco also called on the administration to change course on its approach to energy. He said that we need to expand access to our vast domestic natural resources, approve the Keystone XL pipeline, and eliminate unnecessary and burdensome regulations like EPA’s requirement to blend gasoline with biofuels that do not yet exist, EPA’s upcoming Tier 3 regulations that could raise the cost of making gasoline with no demonstrated environmental benefit, and EPA’s increasing ethanol mandate that will soon exceed our ability to safely use these fuels in existing vehicles.

“We must be sure that new regulatory proposals are necessary, properly crafted, practical, and fair to allow US refiners to remain competitive, preserve good paying refinery jobs, and ensure our energy security,” said Greco. “Policies, such as those embraced by the current administration over the past three years, that limit crude oil production in the United States or prevent supplies from being imported from Canada can put upward pressure on the price consumers pay at the pump. We need a course correction to tell the markets that America is serious about providing the fuel it needs, and we call on the administration to show leadership on energy.”

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.