Barry and EPA policy raise gas and food prices and hurt families
NEW YORK, NY - Shares of oil refiners have slid this past week on concerns that rising renewable fuel credits would begin to pressure margins. The Environmental Protection Agency has propped refineries raising the U.S. ethanol mandate to over 14 billion gallons, compared with 13.2 billion gallons in 2012.
"There is a potential real stinker of an issue developing for US refiners on meeting obligations related to the US government's renewable fuels standard (RFS) that could materially impact earnings for many of the companies. The price of renewable fuel credits, known as Renewable Identification Number (RINs), has skyrocketed from under US$0.01/gal for ethanol in late 2012 to over US$1.00/gal this week, significantly increasing the cost of RFS compliance for the US refiners so far in 2013." Macquarie wrote in a recent note to investors.
The EPA is doing real harm to the public as cellulose based Ethanol hits American consumers two ways with no benefit to air quality or CO2 mitigation. Ethanol subsidies are driving up refining costs which will increase price at the pump and it incentivizes farmers to use food as fuel which causes increases in all food pricing as corn is used as feed and filler too.
While there is a slight reduction in CO2 emissions if you look at only emissions per gallon burned, it doesn't account for the increased CO2 emissions of land use change and the waste of fresh water needed for Ethanol crops. It also doesn't include the transportation emissions nor does it factor in the reduction in MPG that Ethanol causes. When all CO2 contributions for gas and ethanol are factored in there is no pollution or CO2 reduction advantage in using ethanol and there are only economic disadvantages.