On February 20th, 2019, EPRINC hosted a workshop on U.S. Transportation Fuels Policy at the Willard InterContinental Hotel in Washington, D.C. The workshop brought together experts, industry representatives, and stakeholders to compare notes and share perspectives on the future of U.S. transportation fuels policies A brief description of the event is below, and a copy of the agenda and EPRINC’s recent paper on the RFS can be found at the bottom of this post. Also, the presentations from the event can be found here.
Since the end of WW II, U.S. policies and regulatory programs regarding transportation fuels have addressed central concerns about the safety of production, distribution, and use by consumers, energy security, and the environment. Environmental regulations have largely focused on air quality and more recently, carbon emissions. Automobile manufacturers have had to comply with a variety of increasingly stringent Federal and State requirements to meet reduced tailpipe emissions and improve fuel economy. CAFE (Corporate Average Fuel Economy) regulations were enacted in the 1970s to require higher fuel efficiency in motor vehicles. Beginning in 2005 through the passage of the RFS (Renewable Fuel Standard), increasing volumes of biofuel blending has been mandated. New regulations are also coming into force to regulate sulfur content in fuels for shipping vessels under international agreements managed by the International Maritime Organization (IMO). This EPRINC workshop covers these issues by having four panels, on the following topics: policy challenges facing CAFE regulations, risks and realities of electric and automated vehicles, the future of the RFS and the potential for a grand copromise, and implications of IMO regulations for bunker fuel costs and availability.
Over the course of the last forty years, automobile manufacturers have had to comply with a variety of increasingly stringent Federal and State requirements. CAFE (Corporate Average Fuel Economy) regulations were enacted in the 1970s to require higher fuel efficiency in motor vehicles. Beginning in 2005 through the passage of the RFS (Renewable Fuel Standard) increasing volumes of biofuel blending have been mandated. As both of these sets of regulations have created formidable compliance challenges, there has emerged an opportunity to link the two to bring some convergence to these two important public policy concerns and offer some resolution through requiring higher-octane fuel.
EPRINC’s Lucian Pugliaresi and Max Pyziur have written a report which presents an estimate of the cost of transforming the U.S. gasoline fuel system from one in which about 89 percent of sales can be characterized as “regular” and “midgrade” gasoline into a fuel system that, over time, nearly 100 percent of sales can be characterized as “higher-octane” gasoline. Several methodologies were used to estimate the cost of this transformation, and the merits and demerits of each system for calculating the cost are discussed in the report. The report can be found here.
Panelists for the Session on Energy Implications of the new U.S. Mexico Canada (USMCA) Trade Agreement (Left to Right)
Jesus Seade Kuri (Key NAFTA Negotiator for the Administration of President Andrés Manuel López Obrador), Ildefonso Guajardo (Former Minister of Economy and Chief Negotiator of NAFTA), Carlos Pascual (Senior Vice President, Global Energy, IHS Markit), Herman Franssen (Panel Chairman, Executive Director, Energy Intelligence Group), Lucian Pugliaresi (President, Energy Policy Research Foundation), Moisés R. Kalach Balas (Coordinator of the Strategic International Business Council, Consejo Coordinador Empresarial)
Lucian Pugliaresi made two presentations in Mexico City at the Energy Mexico Oil Gas Power 2019 Expo & Congress, a key event for the entire value chain of the Mexican energy sector. He made presentations on a panel discussion on the new U.S. – Mexico – Canada (USMCA) trade agreement as well as a panel evaluating shifts the implications of shifts in national energy policies. His two presentations can be found here and here.
Las acciones derivadas de la reforma energética que se han implementado en México en los últimos años ofrecen un potencial considerable para elevar la producción de petróleo y gas del país, así como incrementar el empleo, permitir la transferencia de avances tecnológicos y también, ingresos adicionales para el Estado mexicano a nivel federal, estatal y local.
Si la reforma se logra implementar adecuadamente, va a contribuir a largo plazo a la seguridad energética de México y Norteamérica. Es muy probable que la reforma energética en México contribuya a que Norteamérica se convierta en un exportador neto de petróleo y gas natural al mercado mundial en los próximos años.
En una reciente evaluación, Michael Lynch, un distinguido colaborador de EPRINC, presenta los resultados y conclusiones de su análisis sobre el valor económico que aporta la reforma energética a México en el sector petrolero. El reporte completo puede leerse aquí. La traducción al español del estudio completo será publicada en el portal web de EPRINC en enero de 2019.