The American Fuel & Petrochemical Manufacturers (AFPM) has highlighted the testimony of Valero Energy Corporation Chairman of the Board and Chief Operating Officer, William R. Klesse, who has appeared before the Senate Committee on Energy and Natural Resources.
The committee, which was established to examine the effects of oil production, refining and distribution on domestic gas prices, received written testimony from Klesse, an AFPM member. In this written statement, Klesse has emphasised that US refineries are a benefit to the economy; hence, any policies making it more difficult to refine in the US are contrary to public interest.
Klesse told members of the Committee that policymakers are right to be concerned about the effects the Renewable Fuels Standard (RFS) may have on gasoline prices in future. In evidence, Klesse indicated that Valero anticipates cost increases between US$ 500 million - 750 million in 2013 due to volatility in the renewable identification number (RIN) market.
The most pressing issue for refiners today is the impending E10 blendwall created by the RFS. Anticipation of E10 has forced obligated parties, including refiners, to incur unprecedented costs for RINs or credits for biofuels that cannot be safely blended into gasoline.
AFPM President, Charles T. Drevna, has additionally commented that the energy landscape in the US has been significantly altered since the RFS was enacted in 2007. Drevna has emphasised that the RFS is not only failing to achieve its environmental goals, it is actually undermining them.
Drevna urges that the Environmental Protection Agency (EPA) immediately waive the 2013 and 2014 biofuel mandates in order to calm the fuel markets. Moving forward, the only option is repeal of the RFS; the law is unworkable, according to the AFPM President.
Adapted from press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/17072013/refiners_backed_against_e10_blendwall482/