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Market News U.S. government advocates biofuel "emergency", or will affect the global climate
U.S. government advocates biofuel "emergency", or will affect the global climate
The U.S. government is asking refiners to increase the use of biofuels such as corn-based ethanol. With this move, the EPA hopes to help the country's Renewable Fuel Standard (RFS) program enter growth mode and drive demand for petroleum-based gasoline and diesel alternatives. The RFS program originated in the Energy Policy Act of 2005, requiring the replacement or reduction of petroleum transportation fuels, heating oil, or jet fuel with a certain amount of renewable fuel.
2022-06-08
11173
As gasoline prices continue to rise, many Americans are already facing the dilemma of not being able to refuel. In this case, the U.S. government is trying to bring more biofuels to the market, but it is questioned that this energy will not only consume a lot of food in the same shortage, but also may cause climate problems.
U.S. retail gasoline prices are soaring. According to the latest data from the American Automobile Association (AAA), U.S. gasoline prices hit a new record on Tuesday (7th) local time, with the national average retail price of a gallon of gasoline reaching $4.92. Some experts predict that the average price of gasoline will rise to $5 a gallon this week.
Last week, the Memorial Day holiday in the United States brought a wave of strong travel demand and gasoline prices rose. The average price of a gallon of gasoline in the U.S. surged 25 cents over the week to $4.84, AAA data showed on Monday. After that, it continued to rise, and it is now close to the $5 mark. Meanwhile, gasoline prices in more than 10 states have topped $5, with California hitting $6.37.
AAA spokesman Andrew Gross said in a release, "At some point, drivers may change their daily driving habits or lifestyle because of high gas prices, but we're not there yet. step."
Price hikes will continue
Total domestic gasoline fell by 700,000 barrels per day last week to 219 million barrels, according to the latest data from the U.S. Energy Information Administration (EIA), while gasoline demand rose to 898 barrels per day from 8.8 million barrels per day due to holiday travel. million barrels per day. Changes in supply and demand have contributed to the rise in retail prices, and coupled with the volatility of crude oil prices, gasoline prices may continue to rise.
National gasoline prices are expected to fall this week as gasoline prices continue to rise and inventories are at their lowest levels for the same period since 2014, Andy Lipow, president of Lipow Oil Associates and senior oil analyst, said in an interview with FOX on Monday. rose to $5 a gallon.
JPMorgan Chase previously predicted that the national average gasoline price could rise above $6 a gallon by August.
Last week, OPEC+ announced it would increase monthly production to 648,000 bpd in July and August, instead of the 400,000 bpd previously planned. But the move appears to have limited impact on the U.S., where supply concerns remain.
Lipo warned that storms along the Gulf Coast could further impact already tight supplies as hurricane season begins.
"With 15% of U.S. oil production and more than 45% of refineries located on the Gulf Coast, a landfall of a major storm could cause severe supply chain disruptions and further increases in (gasoline) prices," Libo said.
U.S. economist Steve Moore attributed the surge in gasoline prices to Biden's "self-harm". "I'd love to see President Biden say we're going to try to put a stop to this crazy discussion about climate change, and we're going to keep drilling and get oil and gas. I think that's how oil prices start to come down."
Biofuels the "future"?
However, the United States seems to favor renewable bioenergy. The U.S. government is asking refiners to increase the use of biofuels such as corn-based ethanol.
According to the final plan released by the U.S. Environmental Protection Agency (EPA) on June 3, the final quota for renewable biofuels in 2022 was set at 20.63 billion gallons, slightly lower than the 20.77 billion gallon target previously proposed by the Biden administration. This target includes 5.63 billion gallons of advanced biofuels and 15 billion gallons of conventional biofuels.
With this move, the EPA hopes to help the country's Renewable Fuel Standard (RFS) program enter growth mode and drive demand for petroleum-based gasoline and diesel alternatives. The RFS program originated in the Energy Policy Act of 2005, requiring the replacement or reduction of petroleum transportation fuels, heating oil, or jet fuel with a certain amount of renewable fuel.
EPA Administrator Michael S. Regan said in a statement that the goal will reduce reliance on oil, provide consumers with more choice and bring the RFS program back on track. "We remain committed to working with all RFS stakeholders," Regan said.
Emily Skor, CEO of Growth Energy, which advocates for ethanol, sees this as a positive sign, "EPA underscores the critical and ongoing role that biofuels play in mitigating climate change and lowering gasoline prices. ".
In addition to the EPA's plan, the USDA announced nearly $700 million in payments for biofuel facilities.
That may not be good news for refiners and energy importers, though, who were asked to add an additional 250 million gallons of biofuels to their existing quotas. At the same time, the EPA also rejected applications for exemptions from 69 small refiners who wanted to waive their quotas from 2016 to 2021.
or cause more problems
Burning crops is also not necessarily a sensible solution.
According to foreign media calculations, filling an SUV with ethanol would require enough corn to feed one person for a year. At present, it is not only energy that is in short supply globally, but the price of food is also rising.
In this context, some people cannot help but question whether it is cost-effective to use biofuels to reduce gasoline prices?
In addition, making more biofuels means more farmland is needed to provide grains, with a knock-on effect of more deforestation, and ultimately worse climate conditions.
Right now, the Biden administration is not only facing soaring gasoline prices. Rising food prices and inflationary pressures are also affecting the economic recovery of the United States. It may even be related to whether the Democratic Party can maintain its control over Congress after the November midterm elections. Control.
An Ipsos poll released on the 5th showed that most Americans believe the economy, inflation and rising gasoline prices are the most important factors in deciding the midterm vote, with only 27% in favor of Biden's handling of gasoline prices.
Lipo said his biggest concern is that rising prices for gasoline, diesel and natural gas, coupled with rising daily necessities, will lead to a slowdown in the global economy. "If that happens, it will be very difficult for the (economy) to reverse quickly".
On June 7, local time, seven states including California will usher in the midterm election primaries. One voter from Anaheim, Calif., said she previously supported Biden but is now considering supporting Republicans in the midterms. "The economy is bad right now and prices are too high."
Article source: International Finance News
U.S. retail gasoline prices are soaring. According to the latest data from the American Automobile Association (AAA), U.S. gasoline prices hit a new record on Tuesday (7th) local time, with the national average retail price of a gallon of gasoline reaching $4.92. Some experts predict that the average price of gasoline will rise to $5 a gallon this week.
Last week, the Memorial Day holiday in the United States brought a wave of strong travel demand and gasoline prices rose. The average price of a gallon of gasoline in the U.S. surged 25 cents over the week to $4.84, AAA data showed on Monday. After that, it continued to rise, and it is now close to the $5 mark. Meanwhile, gasoline prices in more than 10 states have topped $5, with California hitting $6.37.
AAA spokesman Andrew Gross said in a release, "At some point, drivers may change their daily driving habits or lifestyle because of high gas prices, but we're not there yet. step."
Price hikes will continue
Total domestic gasoline fell by 700,000 barrels per day last week to 219 million barrels, according to the latest data from the U.S. Energy Information Administration (EIA), while gasoline demand rose to 898 barrels per day from 8.8 million barrels per day due to holiday travel. million barrels per day. Changes in supply and demand have contributed to the rise in retail prices, and coupled with the volatility of crude oil prices, gasoline prices may continue to rise.
National gasoline prices are expected to fall this week as gasoline prices continue to rise and inventories are at their lowest levels for the same period since 2014, Andy Lipow, president of Lipow Oil Associates and senior oil analyst, said in an interview with FOX on Monday. rose to $5 a gallon.
JPMorgan Chase previously predicted that the national average gasoline price could rise above $6 a gallon by August.
Last week, OPEC+ announced it would increase monthly production to 648,000 bpd in July and August, instead of the 400,000 bpd previously planned. But the move appears to have limited impact on the U.S., where supply concerns remain.
Lipo warned that storms along the Gulf Coast could further impact already tight supplies as hurricane season begins.
"With 15% of U.S. oil production and more than 45% of refineries located on the Gulf Coast, a landfall of a major storm could cause severe supply chain disruptions and further increases in (gasoline) prices," Libo said.
U.S. economist Steve Moore attributed the surge in gasoline prices to Biden's "self-harm". "I'd love to see President Biden say we're going to try to put a stop to this crazy discussion about climate change, and we're going to keep drilling and get oil and gas. I think that's how oil prices start to come down."
Biofuels the "future"?
However, the United States seems to favor renewable bioenergy. The U.S. government is asking refiners to increase the use of biofuels such as corn-based ethanol.
According to the final plan released by the U.S. Environmental Protection Agency (EPA) on June 3, the final quota for renewable biofuels in 2022 was set at 20.63 billion gallons, slightly lower than the 20.77 billion gallon target previously proposed by the Biden administration. This target includes 5.63 billion gallons of advanced biofuels and 15 billion gallons of conventional biofuels.
With this move, the EPA hopes to help the country's Renewable Fuel Standard (RFS) program enter growth mode and drive demand for petroleum-based gasoline and diesel alternatives. The RFS program originated in the Energy Policy Act of 2005, requiring the replacement or reduction of petroleum transportation fuels, heating oil, or jet fuel with a certain amount of renewable fuel.
EPA Administrator Michael S. Regan said in a statement that the goal will reduce reliance on oil, provide consumers with more choice and bring the RFS program back on track. "We remain committed to working with all RFS stakeholders," Regan said.
Emily Skor, CEO of Growth Energy, which advocates for ethanol, sees this as a positive sign, "EPA underscores the critical and ongoing role that biofuels play in mitigating climate change and lowering gasoline prices. ".
In addition to the EPA's plan, the USDA announced nearly $700 million in payments for biofuel facilities.
That may not be good news for refiners and energy importers, though, who were asked to add an additional 250 million gallons of biofuels to their existing quotas. At the same time, the EPA also rejected applications for exemptions from 69 small refiners who wanted to waive their quotas from 2016 to 2021.
or cause more problems
Burning crops is also not necessarily a sensible solution.
According to foreign media calculations, filling an SUV with ethanol would require enough corn to feed one person for a year. At present, it is not only energy that is in short supply globally, but the price of food is also rising.
In this context, some people cannot help but question whether it is cost-effective to use biofuels to reduce gasoline prices?
In addition, making more biofuels means more farmland is needed to provide grains, with a knock-on effect of more deforestation, and ultimately worse climate conditions.
Right now, the Biden administration is not only facing soaring gasoline prices. Rising food prices and inflationary pressures are also affecting the economic recovery of the United States. It may even be related to whether the Democratic Party can maintain its control over Congress after the November midterm elections. Control.
An Ipsos poll released on the 5th showed that most Americans believe the economy, inflation and rising gasoline prices are the most important factors in deciding the midterm vote, with only 27% in favor of Biden's handling of gasoline prices.
Lipo said his biggest concern is that rising prices for gasoline, diesel and natural gas, coupled with rising daily necessities, will lead to a slowdown in the global economy. "If that happens, it will be very difficult for the (economy) to reverse quickly".
On June 7, local time, seven states including California will usher in the midterm election primaries. One voter from Anaheim, Calif., said she previously supported Biden but is now considering supporting Republicans in the midterms. "The economy is bad right now and prices are too high."
Article source: International Finance News
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