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Cheaper ethanol contributes to steady drop in gasoline prices

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Cheaper ethanol contributes to steady drop in gasoline prices

Posted 1 October 2013 in

National

From the New Jersey Star Ledger:

Fill’er up.

The average price for a gallon of gasoline in New Jersey is now $3.31, about 6 cents below last week’s price and 41 cents less than this time a year ago.

Cheaper ethanol — retail gasoline contains 10 percent ethanol — is contributing to the drop, according to Tom Kloza, chief oil analyst at GasBuddy.com.

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Cheaper ethanol contributes to steady drop in gasoline prices

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You’re No Dummy. Don’t Let Big Oil Treat You Like One

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You’re No Dummy. Don’t Let Big Oil Treat You Like One

Posted 9 September 2013 in

National

In the face of the oil industry’s continued assault on America’s renewable fuel, Growth Energy has launched a new campaign that takes on their misleading claims and half-truths.

Want to learn more? Start by watching Growth’s new video, Big Oil Presents Mr. Slick and Dummy:

We know You’re No Dummy, so head over to yourenodummy.com and get the facts the oil companies don’t want you to know.

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You’re No Dummy. Don’t Let Big Oil Treat You Like One

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American Lung Association MN: Ethanol Blend is Better than Gasoline

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American Lung Association MN: Ethanol Blend is Better than Gasoline

Posted 5 September 2013 in

National

From Gas 2.0:

Are ethanol blend fuels better than traditional petroleum fuels? According to the American Lung Association (ALA), that answer is an unequivocal “yes.” “Using E85 in a flex fuel vehicle significantly reduces tailpipe emissions as well as lifecycle greenhouse gas emissions,” explains the ALA. “The 10 percent ethanol added as an oxygenate in our gasoline helps the fuel burn cleaner and reduces the amount of oil we need to import from other states and other countries.”

The ALA writer goes on to point out that gasoline has net-negative energy balance, citing US Dept. of Energy reports that, “for every unit of energy expended in gasoline production, just 0.81 units of energy are delivered in the final product. On the other hand, for every unit of energy used to make ethanol and its co-products, 1.87 units of energy are yielded.”

That’s just part of the American Lung Association’s ringing endorsement for ethanol – and, yet, I already know some people will be frothing at the mouth to dispute their findings.

Read the full post here.

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American Lung Association MN: Ethanol Blend is Better than Gasoline

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Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop

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Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop

Posted 14 August 2013 in

National

From Bloomberg News:

Ethanol declined against gasoline as the futures slid to a 14-month low on speculation that the September corn harvest will allow companies to boost output of the biofuel.

The spread between the fuels expanded 5.64 cents to 80.25 cents a gallon a day after the Agriculture Department said domestic corn output will set a record. Ethanol for September delivery closed at a 25.6-cent premium to the October contract on the Chicago Board of Trade.

“The steep carry in September and October has producers emptying tanks of any material,” said Justin Dirico, manager of the biofuels desk at Eagle Energy Brokers LLC in New York.

Denatured ethanol for September delivery fell 1.8 cents, or 0.8 percent, to $2.14 a gallon on the Chicago Board of Trade, the lowest price since June 22, 2012. Futures have declined 2.3 percent this year.

It’s clear the RFS is working as intended – bringing consumers lower costs at the pump, while spurring farmers to feed and fuel the country.

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Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop

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Statement on EPA’s 2013 RFS Requirements

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Statement on EPA’s 2013 RFS Requirements

Posted 6 August 2013 in

National

The 2013 volumetric targets set by the EPA reflect the reality that the biofuels industry is growing and becoming a vital part of our transportation fuel mix.

By setting the 2013 targets as such, the EPA is fully utilizing the flexibilities incorporated within the RFS. It also provides evidence that the RFS works: it adjusts to market conditions.

In just five years, the RFS has driven substantial investment in our domestic fuel industry, created jobs for Americans, and most importantly – built a market for oil alternatives in our transportation fuel sector. The policy allowed domestically produced, renewable fuel to displace 462 million barrels of crude oil in 2012, and is poised to further reduce our dependence on fossil fuels. The RFS is working.

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Statement on EPA’s 2013 RFS Requirements

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Sorry, Wall Street Journal: Renewable Fuel Lowers Gas Prices

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Sorry, Wall Street Journal: Renewable Fuel Lowers Gas Prices

Posted 22 July 2013 in

National

In its new editorial, the Wall Street Journal is concerned you might be feeling some extra pain at the pump:

The summer is high driving season, so $4 gasoline in many parts of the country will add to the cost of family vacations.

And we couldn’t agree more. As they concede early on, the price of gas is mostly set by global supply and demand. But when the WSJ goes on to claim that the Renewable Fuel Standard is driving prices up even more, that’s when their argument fallsl apart. Renewable fuel actually lowers the price of gas, plain and simple.

Here’s what the WSJ gets wrong:

  1. The so-called blend wall is a fabrication, essentially the oil industry’s attempts to evade its responsibilities under the Renewable Fuel Standard. E15 fuel has been extensively tested and is ready for sale, and misinformation about its safety or efficiency only confuses consumers (who we know want more renewable fuel options when they fill up).
  2. The RFS and its associated “RIN credits” have not been a factor in higher retail gasoline prices, according to an analysis conducted by Informa Economics, Inc. In fact, the study found ethanol costs significantly less than gasoline at the wholesale level and is reducing pump prices for consumers across the country.
  3. Renewable fuel and the Renewable Fuel Standard are helping reduce carbon emissions. In 2012, the use of renewable fuel slashed greenhouse gas emissions by 33.4 million metric tons.

Remember this: as long as the WSJ continues to take its talking points straight from the oil companies, we’ll be here to make sure you’re getting the facts.

 

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Sorry, Wall Street Journal: Renewable Fuel Lowers Gas Prices

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Droughts could hit food production in 2020s, report warns

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Droughts could hit food production in 2020s, report warns

Posted 11 July 2013 in

National

From The Guardian:

Droughts could devastate food production in the England by the 2020s, according to a report from the government’s official climate change advisers. Without action, increasingly hot and dry summers may mean farmers will face shortfalls of 50% of the water they currently use to grow crops. The report, from the climate change committee (CCC), also warns that current farming practices may be allowing the country’s richest soils to be washed or blown away.

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Droughts could hit food production in 2020s, report warns

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Response to House E&C Committee White Paper on Energy Policy

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Response to House E&C Committee White Paper on Energy Policy

Posted 24 June 2013 in

National

The bottom line:

Our nation’s continued reliance on oil ensures that American families and our economy will continue to be burdened by the high and volatile prices of the global oil market and the national security challenges that come with oil dependence, as well as a greenhouse gas intensive transportation fuel supply. The Renewable Fuel Standard is the single-most important policy driving our nation toward oil alternatives.

Read the full letter to Reps. Upton and Waxman of the House Energy & Commerce Committee on the energy policy implications of the Renewable Fuel Standard.

 

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Response to House E&C Committee White Paper on Energy Policy

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Response to House E&C Committee White Paper on Energy Policy

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Response to House E&C Committee White Paper on Energy Policy

Posted 24 June 2013 in

National

The bottom line:

Our nation’s continued reliance on oil ensures that American families and our economy will continue to be burdened by the high and volatile prices of the global oil market and the national security challenges that come with oil dependence, as well as a greenhouse gas intensive transportation fuel supply. The Renewable Fuel Standard is the single-most important policy driving our nation toward oil alternatives.

Read the full letter to Reps. Upton and Waxman of the House Energy & Commerce Committee on the energy policy implications of the Renewable Fuel Standard.

 

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Response to House E&C Committee White Paper on Energy Policy

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Renewable Agriculture

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Renewable Agriculture

Posted 4 June 2013 in

National

A recent study out of Rice University has predicted hardship for biofuel production as a result of climate change. While we agree that fossil fuel-induced climate change will indeed wreak havoc on agriculture writ large, it’s important to clear up a few points from this study. The paper claims that because our climate will become increasingly harsh and unpredictable, we will not be able to grow as many crops and what we do produce will need more water. But what these researchers don’t account for is the innovation that America’s farmers have shown each and every year in dealing with unforgiving weather patterns. Instead of hypothesizing about what farming will look like in 40 years, let’s look at what we’ve done in the past to inform our predictions of what will happen in the future.

We have been in drought for years, and that should have hurt production. But according to this report by Field to Market, which looked at 1980-2011, we’ve been handling it well:

Production is up: corn production has doubled
Land use is down: we use 1/3 less land to produce a bushel of corn
Water use is down: just 13% of the nation’s cropland is irrigated, and for corn that is irrigated, water use has been cut in half

Through the ingenuity and forward thinking of America’s farmers, we’ve increased production, decreased the amount of land it takes to grow, and are more efficient with our water resources than ever before. All of this progress has been in the midst of devastating drought that should have resulted in the opposite happening. We have done it before, and we’ll do it again.

But never mind that the study doesn’t account for bettering technology and practices, the study looks forward for 40 years to criticize the RFS, a policy which only has increasing volumetric targets for biofuel for the next nine years. It’s clear that a study working on a timeline that is so far from synching up with the policy it is aimed to criticize cannot be taken seriously.

In sum, farmers are getting more efficient in all aspects of crop production, and you can count on that trend to continue.

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Renewable Agriculture

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