Archive for the ‘Refining’ Category
Presentation Before the Energy Forum
On February 22, 2010 EPRINC made a presentation before the Energy Forum in New York at their event entitled “U.S. Refining Industry - Prospects for the Future.” EPRINC’s presentation, which assesses the impact of the Waxman-Markey cap and trade bill and other environmental and energy policies on the U.S. refining industry, has been posted on our website and can be downloaded here.
The presentation will also be posted at http://www.nyenergyforum.org
The Future of the U.S. Refining Industry Under Waxman-Markey
EPRINC has released an executive summary of its forthcoming report examining the future of the U.S. refining industry under the American Clean Energy and Security Act, also known as the Waxman-Markey bill.
A PDF version of the executive summary can be downloaded here and is posted on our publication page. The full report will be posted on our website later this week.
EXECUTIVE SUMMARY
EPRINC has evaluated the economic consequences to the U.S. refining industry of the American Clean Energy and Security Act (ACES), H.R. 2454, also known as the Waxman-Markey (W-M) energy and climate bill. The legislation calls for controlling emissions of greenhouse gasses (GHGs) by placing a price on GHG emissions. The bill passed the House of Representatives on June 26, 2009 and companion legislation is under discussion in the U.S. Senate.
Under the Waxman-Markey bill, both manufacturers (refiners) and importers of transportation and other fuels derived from crude oil would be required to purchase allowances to account for the carbon dioxide (CO2)emitted into the atmosphere as a result of combustion of these fuels beginning in 2012, two years before any free allowances are distributed. Allowances could be bought and sold under the legislation’s cap and trade program. U.S. refiners are responsible for approximately 45% of all emissions covered under Read More >>>
OGJ Editorial Discussing EPRINC’s Assessment of the Administration’s Tax Proposals
The Oil & Gas Journal published an editorial today which discusses EPRINC’s assessment (August 4, 2009) of the Obama Administration’s proposed taxes on the U.S. oil and gas industry:
“A new study by the Energy Policy Research Foundation Inc. (EPRINC), Washington, DC, challenges the rationale offered by the Treasury Department for tax changes that would hurt small producers and major companies alike. In fact, EPRINC says, the changes would have costly effects directly opposed to the administration’s assertions……Diminished security. Increased emissions of greenhouse gases. Net economic losses. Hampered ability of an important manufacturing industry to compete in its home market. These can’t be outcomes the administration had in mind when it proposed its first federal budget. They are very real possibilities, however, which must be taken seriously.”
The full article can be accessed at the Oil & Gas Journal’s website: Editorial: Unsound Energy Thinking
Do Higher Oil and Gas Taxes Pose a Threat to U.S. Energy Security?
An EPRINC Assessment of the Administration’s Proposed Tax Policies
Regarding the Domestic Petroleum Industry
(For Footnotes Please Download the PDF Version of This Report)
Policy debates over taxes on domestic oil and natural gas operations are a recurring theme in U.S. energy policy, and changes to oil and gas taxes take place at both federal and state levels. The administration is now proposing wide ranging increases to the federal tax treatment of both upstream and downstream operations in the U.S. petroleum industry. The rationale provided for these changes, according to the Treasury Department are: (1) to eliminate the current level of “excessive” investment in domestic oil and gas operations and return the industry to a more neutral tax regime; (2) to reduce carbon emissions and encourage the use of renewable fuels; and (3) to redirect tax “subsidies” from the oil and gas sector to “more productive uses.” EPRINC’s assessment concludes that given the already high cost characteristics of oil and gas production in the United States, the proposed taxes would not achieve Treasury’s objectives and instead would result in higher imports of crude oil Read More >>>
A Primer on Gasoline Blending
An EPRINC Briefing Memorandum
Refineries produce a more expensive fuel blend during the summer to cut down on smog during hot months. Stations nationwide will start selling a less-expensive winter fuel usually by mid September, which on average means that winter gasoline is less expensive than summer gasoline.
Gasoline is composed of many different hydrocarbons. Crude oil enters a refinery, and is processed through various units before being blended into gasoline. A refinery may have a fluid catalytic cracker (FCC), an alkylate unit, and a reformer, each of which produces gasoline blending components. Alkylate gasoline, for example, is valuable because it has a very high octane, and can be used to produce high-octane (and higher value) blends. Light straight run gasoline is the least processed stream. It is cheap to produce, but it has a low octane. The person specifying the gasoline blends has to mix all of the components together to meet the product specifications.
There are two very important (although not the only) specifications that need to be met for each gasoline blend. The gasoline needs to have the proper octane, and it needs to have the proper Reid vapor pressure, or RVP. While the octane of a particular grade is constant throughout the year, the RVP spec changes as cooler weather sets in.
The RVP is the vapor pressure of the gasoline blend when the temperature is 100 degrees F. Normal atmospheric pressure varies, but is usually around 14.7 lbs per square inch Read More >>>
