Does Your Senator Support an Energy Tax?

  • 04/22/13
  • AEA
  • News
In dueling votes last month, U.S. senators took a stand either for or against a tax on carbon dioxide emissions. Although symbolic, the votes separated those who want to impose yet another tax on American consumers from those who understand that more taxes mean less prosperity. By a vote of 53-46 , the Senate expressed support for Sen. Roy Blunt's amendment to ensure that any future carbon tax bill would require 60 votes to pass. On the other hand, the Senate overwhelmingly rejected Sen....
Continue Reading...

Federal Regulations Drive Up Gasoline Prices

  • 04/12/13
  • AEA
  • News

Lately an argument has broken out over the Renewable Fuel Standard (RFS) and whether it drives up gasoline prices. The recent controversy was sparked by a WSJ article discussing the shocking fact that Renewable Identification Number (RIN) credits—which are one way of complying with the federal standard—had shot up in prices from about 7 cents in January to more than $1 in March. The WSJ article argued that—duh!—massively increasing a cost component would drive up gas prices. In...
Continue Reading...

ICYMI: White House Favors Green Energy

WASHINGTON D.C. -- AEA President Thomas Pyle was cited in an E&E News Greenwire article today on the energy provisions in President Obama's FY2014 budget proposal. Pyle's comments target President Obama's continued pursuit of discriminatory energy policies: greenwire-logo Clean energy favored, fossil fuel programs cut under fiscal 2014 budget E&E News, Greenwire By Nick Juliano, Hannah Northey and Katherine Ling, E&E Reporters 4/10/2013 President Obama's fiscal 2014 budget request would boost funding...
Continue Reading...

AEA Statement on White House Budget Proposal

President Barack Obama released his FY 2014 budget on Wednesday, a $3.77 trillion plan with a $744 billion deficit. AEA President Tom Pyle released the following statement in response to the energy provisions included in the White House budget:
"Now months overdue, President Obama's budget represents the administration's desire to double down on bad energy policy. The same week that the U.S. Comptroller General identified scores of fragmented, duplicative and wasteful renewable energy...

Continue Reading...

The Biofuel Mandate and EPA’s Costly Tall Tale

  • 04/05/13
  • AEA
  • News
  The Energy Policy Act of 2005 requires the Environmental Protection Agency (EPA) to set mandatory levels of cellulosic biofuel for refiners to blend into transportation fuels.  In order to restrain EPA, the law requires that the mandate be based on an estimate from the Energy Information Administration (EIA) as to how much cellulosic biofuel would be produced in the given year. In 2010 and 2011, EPA mandated refiners to blend millions of gallon of cellulosic biofuel.  However, in both...
Continue Reading...

Prepare for Higher Gas Prices

  • 04/04/13
  • AEA
  • News
  EPA Will Increase Gasoline Prices and Reduce Fuel Economy with Its Bid to Further Reduce Sulfur in Gasoline The U.S. Environmental Protection Agency (EPA) has decided that the sulfur content of gasoline must be further reduced from 30 parts per million to 10 parts per million on an annual average basis by January 1, 2017 .  This will bequeath to President Obama’s successor the immediate economic problem of higher gasoline prices for consumers upon assuming office. Refiners are...
Continue Reading...

New Study on the Impact of RFS Implies There Is No Need for the RFS

  • 03/29/13
  • AEA
  • Facts
  Earlier this week, the Renewable Fuels Association released a report arguing that the Renewable Fuel Standard (RFS) is only slightly raising gasoline prices. The implication of the report is clear—there is no need for RFS. If the RFS has positive benefits, as the report claims, or only slight costs, then there is no need for Congress to mandate the use of billions of gallons of ethanol a year. With gasoline prices spiking recently, the ethanol fuel industry, through its promotion of...
Continue Reading...

The Boom in the Bakken Continues

  • 03/27/13
  • AEA
  • News
The new era in American energy being brought on innovative hydraulic fracturing and horizontal drilling technologies has made, North Dakota, the poster child of the domestic energy boom.  In 2012, North Dakota was the second largest oil producer, boasting the nation’s lowest unemployment rate at 3.6%. North Dakota’s emergence as an energy giant is a beacon on the hill during our nation’s tough economic times and should be used as an example for other states with vast oil and natural...
Continue Reading...

Senator Whitehouse’s Duplicitous Carbon Tax Amendment

  • 03/26/13
  • AEA
  • Emissions Standards

Last weekend the Senate rejected an amendment to the FY 2014 budget that would have enacted a carbon tax. For those interested in affordable energy and job creation, this was a good thing. Still, it’s worth walking through the actual wording of Senator Whitehouse’s amendment to see just how duplicitous it was. Even if someone knew nothing of the climate policy debate, the rhetorical sleight of hand in Whitehouse’s proposal should raise alarm bells. A Tax By Any Other Name Would Hurt...
Continue Reading...

Ethanol “Blending Wall” Leads to Gas Exports

  • 03/18/13
  • AEA
  • News

A recent WSJ article explained how the ethanol mandate is leading to a “blend wall” that paradoxically leads U.S. refiners to export their gasoline, raising pump prices at home. This is just another fantastic example of government policies having unintended consequences.

Before looking at just how serious the problem is, let’s set the context by quoting from the WSJ piece:
This story dates to 2007 when the Bush Administration joined Democratic greens and corn-state Republicans to pass...

Continue Reading...