As the Senate Finance Committee continues its series of hearings on climate change, it is encouraging that senators are considering issues related to the distribution of free allowances under a cap-and-trade system.

Senators should understand that copying the ill-conceived House approach will not contribute to a comprehensive energy policy that creates jobs, grows the economy and addresses climate change. The House approach places a disproportionate burden on all consumers of gasoline, diesel fuel, heating oil, jet fuel, propane and other petroleum products.

The House approach relies on a flawed distribution of free allowances that picks winners and losers as the nation transitions to low-carbon sources. The House plan would hold refiners responsible for 44 percent of emissions but only al... more »

In this week's episode, I talk with Al Mannato, fuels issues manager at API, about how the oil and natural gas industry plans to continue supplying fuels to the United States in the aftermath of hurricanes.

Use the audio player below to listen to my conversation with Mr. Mannato and follow along with the show notes. I hope you find the podcast informative.

Show Notes

00:17 It's been nearly four years since the Gulf Coast was struck by Katrina and Rita, the two hurricanes that lead to widespread destruction and loss of life in coastal communities. Last year, we again faced back-to-back hurricanes--Gustav and Ike. As you might recall, the storms also damaged refineries, reduced or eliminated power to pipelines and led to tight fuel supplies in parts of the country.

00:44 The oil and... more »

There's no doubt about it--the air is much cleaner today than it was a few years ago. The City of Los Angeles is no longer engulfed in a brown haze; the air in the Ohio Valley now has a crisp, clean smell; and Milwaukee residents are breathing easier than ever before.

Yet, the perception lingers that the air is dirty and is becoming increasingly unhealthful. So, let's set the record straight using the Environmental Protection Agency's (EPA) own air quality monitoring numbers.

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• According to the EPA, emissions from six criteria air pollutants (CO, NO2, SO2, lead, ozone, particulate matter) dropped by 60 percent between 1970 and 2008, while vehicle miles traveled went up 163 percent.
• Nitrogen oxide levels (NO2) fell by 46 percent between 1980 and 2008 and are expected to continue declining.... more »

Second quarter 2009 earnings reports clearly show the recession's impact on the energy sector.

With 14 large oil and natural gas companies reporting their 2Q earnings so far, the industry's earnings amount to an average of 4.4 cents per dollar of sales. In comparison, the Dow Jones Industrial Average (DJIA) companies achieved 9.3 cents per dollar in the second quarter with 23 of the 30 companies reporting.

Why would the United States Congress snub its nose at our neighbors to the north? It's a very good question, and one that leaves us scratching our heads. Please allow me to explain.

Recently the U.S. Senate took up the defense appropriations bill, which gave it the opportunity to correct the flaws in Section 526 of the Energy Independence and Security Act of 2007. This act contains language that could prohibit federal agencies from procuring fuel from U.S. refiners that use Canadian oil sands-derived crude oil as their feedstock.

Canada is by far the biggest supplier of imported oil to the United States. More than two million barrels a day cross the border for processing into gasoline, heating oil, diesel fuel and other products used by Americans every day. About one-half of that oil is de... more »