RFS Reduction Could Result in $15 Billion Windfall for Big Oil

RFS

From the nonsensical claims of the blend wall to bogus quotes from AAA to fraudulent claims that increased ethanol production will increase the cost of food, big oil hasn’t stopped fighting the Renewable Fuels Standard since day 1- and it’s becoming obvious why. A recently “leaked” draft of new legislation suggests the EPA is being pressured to reduce the “renewable fuel” requirement from the statutory level of 14.4 billion gallons to as little as 12.36- a move which would lead to a windfall for Big Oil in 2014— big to the tune of $9-$15 billion!

Despite what many would like you to believe, the oil industry’s crusade against the RFS (and, by extension, ethanol) isn’t about the interests of the American consumer. It is, as Geoff Cooper puts it, “about money, market share, and (illegally) snuffing out competition”.

Former US Secretary of Agriculture John Block seems to agree with Cooper’s take on the push for an RSF reduction. He recently wrote, “Refiners have already lost 10 percent of the gasoline market to ethanol, and they are leaving no stone unturned in their effort to block cleaner, cheaper biofuels from taking more of their market share.” That “leaving no stone unturned” apparently includes price-gouging, illegally dumping waste into drinking water supplies, poisoning the air in small towns, and refusing to pay court-ordered damages– but that’s another article. Probably.

This article is about profits and motives, then, so take a look at the numbers Mr. Cooper put together to outline the winners and losers in a variety of RFS reduction circumstances, take it all in, and let us know what you plan to do about it- from writing your Congressman to buying an electric car- in the comments, at bottom.

RFS Reduction - who profits

 

Source: Renewable Fuels America.

 

Jo Borrás

I've been in the auto industry 1997, and write for a number of blogs in the IM network. You can also find me on Twitter, at my Volvo fansite, or chasing my kids around Oak Park, IL.