Prodigy Oil and Gas Shawn Bartholomae Shawn Bartholomae Anticipates Changes In Bio-Fuel Guides Dallas Texas

It looks like some revisions may be due relative to ethanol blended gasoline, says Shawn Bartholomae of Prodigy Oil and Gas Company of Irving, Texas.

It seems EPA standards for the amount of bio-fuels, ethanol credits, which had to be consumed were based upon a projected usage of gasoline, not actual usage. This projected usage was higher than the actual consumption in 2012.  The numbers of gallons of gas being burned so far in 2013 actually have dropped, for a several of reasons including better gas mileage and reduced driving. The question has arisen and causes some concern; If the ethanol credits are mandated, which was the earlier ruling from the EPA, how will the gasoline retailer handle all of the extra credits?

Consumption of gasoline nationwide has declined from 141 billion gallons in 2007, when the mandates were last updated, to a rate of 133 billion now affecting the required minimum amount of biofuels to be blended into transportation fuels such as gasoline and diesel. For 2013, that level is 16.55 billion gallons. This volume requirement, unless mandated otherwise continues to rise each year until 2022.

It was discussed, but never actually ruled, that the standards might go to an E15 level, meaning 15% of the mix would have to be ethanol. Automakers were quick to point out that such a move would void their warranties. Evidence surfaced from numerous sources that even at a 10% mixture, the engines burning this blend were crowding the limits from what the motors could stand. At E15, something would have to give.

Somehow the news leaked that the EPA might have to reduce the revised fuel standards refinery share prices soared on the news.

The whole incident is being called a retreat by the EPA.

The EPA said on Aug. 6 that it will “propose adjustments” to next year’s volume requirements because of limitations hindering production of biofuels, suggesting that the target levels will be reduced.