16-07-2013
Refiners backed against E10 blendwall
The American Fuel & Petrochemical Manufacturers (AFPM) highlight the testimony of Valero Energy Corporation Chairman of the Board and Chief Operating Officer William R. Klesse who testified before the Senate Committee on Energy and Natural Resources to examine the effects of oil production, refining and distribution on domestic gas prices.
In his written testimony presented to the Committee, Klesse, an AFPM member, noted that U.S. refineries are a benefit to the economy and warned that, “any policies making it more difficult to refine in the U.S. are contrary to the public interest.”
The most pressing obstacle for refiners today is the impending E10 blendwall created by an increasingly obsolete Renewable Fuel Standard (RFS). Anticipation of the blendwall has forced obligated parties, including refiners, to incur unprecedented costs for Renewable Identification Numbers (RINs) or credits for biofuels that cannot safely be blended into gasoline. Just this week, the price of RINS soared to a record high of $1.33 for advanced biofuel RINS, $1.32 for corn-based ethanol RINs and $1.33 for biomass-based diesel RINs.
Representing the third largest corn ethanol producer in the United States, Klesse told members of the Committee that policymakers are right to be concerned with the impacts on consumer gasoline prices caused by the way in which the RFS is currently implemented. As evidence, Klesse said that Valero anticipates cost increases between $500 to $750 million in 2013 because of volatility in the RINs market.
“The energy landscape in the United States is markedly different today than it was when the RFS was enacted in 2007,” said AFPM President Charles T. Drevna. “Today it is clear that the RFS is not only failing to achieve its environmental goals, but is actively undermining them.
“EPA should immediately waive the 2013 and 2014 biofuel mandates to calm the fuel markets, but the law is unworkable at its core and the only answer is for Congress to repeal the RFS,” Drevna concluded.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
MOL inaugurates its polyol complex in Tiszaújváros
MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed ...
15-05-2024
-
NEXTCHEM completes the acquisition of GasConTec
Further to the announcement made on 4 March 2024, MAIRE announces that NEXTCHEM has finalized the acquisition of 100% of GasConTec GmbH, an innovative company specialized ...
15-05-2024
-
KBR awarded digital solutions contract by OCI
KBR announced today it has been awarded a contract by OCI Global to design and deploy its proprietary operator training simulator for OCI's 3,000 metric tonnes ...
13-05-2024
-
Worley awarded Bayou Bend CCS carbon capture and storage facility contract
We’ve been selected to design and evaluate CO2 gathering, handling and sequestration facilities located along the Gulf Coast in Southeast Texas. Bayou Bend ...
13-05-2024
-
Black & Veatch delivers feasibility study for Andes Energy LNG Terminal
Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has completed a feasibility study for the planned Andes Energy Terminal, LNG regasification ...
09-05-2024
-
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company ...
08-05-2024
-
Integrated Global Services recognized for role in mega turnaround
Integrated Global Services has been recognized as a major contributor to the successful Ras Tanura Refinery 2024 Mega Turnaround and Inspection for Saudi Arabian Energy ...
08-05-2024
-
Ebara Elliott Energy to provide compressor for SAF project in Thailand
Ebara Elliott Energy, formerly Elliott Group, announces it has been contracted to provide a motor-driven recycle compressor with a variable frequency drive (VFD) for ...
07-05-2024
-
ETH Zurich select hte to provide high throughput test system designed for CO2 electroreduction
hte – the high throughput experimentation company was awarded a contract by the technical university ETH Zurich to provide a high throughput test system designed for ...
07-05-2024