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:

Felmy:

“The White House says it’s con... more »

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.

As you can see, vehicles that can run on either gasoline or E85 (average 74 percent ethanol content) get significantly fewer miles per gallon when using comparatively low energy ethanol blended fuels.  This means that in addition to the ex... more »

EPA’s proposed Tier 3 rule requiring refiners to further reduce sulfur levels in gasoline is just one part of a regulatory wave being unleashed by the agency that would provide limited benefits at significant cost.

An ENVIRON analysis found that gasoline sulfur reductions equivalent to those in the proposed Tier 3 rule would “yield only very small additional improvements” in air quality, while a Baker & O'Brien study shows Tier 3 carrying a price tag for refiners totaling $10 billion in capital costs and $2.4 billion in annual compliance costs. According to Baker & O’Brien, that could add 6 to 9 cents per gallon to the cost of making gasoline – which already contains 90 percent less sulfur than it did a decade ago.

This scenario of high cost for virtually no benefit that characterize... more »

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. Why? Because it has identified significant problems with ethanol mandates under the RFS, which also have generated concern from auto manufacturers, consumer safety groups like AAA, farmers, grocery manufacturers, environme... more »

BBC News – Neighboring U.S. Towns Worlds Apart on Natural Gas Fracking

BBC’s Laura Trevelyan reports on the divide between New York State and Pennsylvania in the hydraulic fracturing debate. Must watch at 2:19: a fourth generation New York landowner talks about the benefits of fracking – and the consequences of not lifting the moratorium.

Free Enterprise – Abundant U.S. Energy Attracts Foreign Companies

Abundant U.S. energy, courtesy of hydraulic fracturing tapping shale oil and natural gas deposits, is attracting manufacturers from Europe and South America, Sean Hackbarth reports. This will translate into jobs and a “much more competitive U.S.”

The Foundry Blog – New EPA Regulations Mean Higher Gas Prices

“The increased stringency of the sulfur regulation in gasoline will add... more »