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Valero Energy Corporation Message Board

  • bluecheese4u bluecheese4u Sep 16, 2013 1:48 AM Flag

    Valero: Fix the RFS Day says law is written to make refiners losers


    Valero: Fix the RFS Day says law is written to make refiners losers

    September 15, 2013
    By LARRY KERSHNER, kersh@farm-news

    Valero, the nation's largest oil refiner and one of the largest ethanol makers, said the Renewable Fuels Standard needs to be rewritten.

    Bill Day, Valero's vice president of media and community relations, said the RFS is not working "and needs to be changed fairly quickly."

    Day said Valero is calling for a 2013 waiver from the 2013 manufacturing requirement for ethanol, keep the blending mix at 10 percent based on actual gasoline usage, and to make blenders the obligated party for generating renewable identification numbers - RINs - and not refiners.

    "Valero supports renewable fuels," Day said. "We're producing ethanol, renewable diesel fuel from animal fats and have a 50-megawatt wind farm in the Texas Panhandle that provides the electricity to power a refinery next door.

    "We understand renewable fuels and the challenges and the economics behind them."

    He said not all Valero's ethanol is blended into its gasoline. Its ethanol is marketed to wherever the best return can be made, including being sold into markets in Chicago and New York harbor.

    Steps to fix the RFS

    Day said Valero is lobbying the United States Congress and the Environmental Protection Agency for three reforms of the RFS. These are:

    Have the EPA grant a waiver for this year's RFS blending obligation.

    "The EPA said it will look at the 2014 numbers and try to come with a reasonable obtainable goal," Day said. "That has already taken pressure off the RINs prices. The EPA has the power to grant a (2013) waiver."

    Wants RFS tied to actual gasoline usage at the 10 percent level.

    "We're in the business of fueling vehicles, and we know that E15 has only been warranted for vehicles newer than 2012 if they're General Motors vehicles.

    "That leaves hundreds of millions of vehicles that don't have warranty protection for E15. Auto makers have said they'll void the warranties if

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    • If the EPA doesn't significantly increase higher ethanol blends in the very near future then refiners of expensive $4.00 a gallon gasoline, diesel, biodiesel will see their market share significantly eroded by electric vehicles. Much higher blends of inexpensive ethanol are required and ediesel must be mandated (5%, 10% or a maximum of 15% ethanol blends within ediesel) to reduce the excessive retail pricing of diesel/biodiesel and gasoline.

      Expensive dirty gasoline and diesel are pricing themselves out of the market! Replaced by inexpensive natural gas, sequestered coal, wind and solar powered electric vehicles! Goodbye!

      The USDA must request large crops of corn and soybeans to contain inflated values of both corn and soybeans in 2014 and 2015 to lessen the exposure to potential drought. There may be a slight delay for inexpensive cellulosic ethanol. If refiners refuse to import inexpensive advanced sugarcane ethanol form Brazil then e100 produced from sugarcane and advanced cellulosic ethanol should be mandated for use in America.

      My opinion


      • 1 Reply to bluecheese4u
      • Refiners' don't seem to realize that they're being crushed between a rock and a hard place. It's the electric vehicle and it's quickly evolving technology that's crushing refiners against tumbling electrical energy prices from inexpensive natural gas, wind, solar and even sequestered coal that will very likely be cheaper than natural gas by the end of 2014. And inexpensive renewable energy storage! Failure to embrace inexpensive clean ethanol blends to their fullest extent only accelerates refiners loss of market share and final demise. E15, e20, e85 that isn't misrepresented by e50 and ediesel/ebiodiesel up to a maximum blend of 15% ethanol.

        My opinion

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