Archive for August, 2010

The Great Oil Shuffle: study says LCFS actually raises emissions

Monday, August 16th, 2010

A study shows that LCFS implementation in the United States would create more carbon emissions.  The study— conducted by the Barr Engineering Company for NPRA— directly contradicts the argument of LCFS advocates, who claim LCFS fuels are “cleaner” and emit lower quantities of greenhouse gases than Canadian crude oil.

So how many more tons of carbon emissions could be thrown into the atmosphere at the behest of LCFS advocates?  The answer:  up to 19.1 metric tons per year!

LCFS would stop American refiners from importing Canadian oil— and the U.S. would be forced to purchase petroleum from the Middle East and other crisis-ridden areas.  Our friends to the north—the Canadians— would switch and sell oil to China.  Tankers— instead of pipelines—would then be used as the primary conveyance mechanism for petroleum.

In the ensuing “great oil shuffle”— the heavy usage of tankers would create a higher amount of greenhouse gas emissions than conventional pipeline usage. Good Canadian oil formerly consumed in U.S. markets would be shipped to non-LCFS nations.  In the process, we fall on the losing end of a strategic North American energy partnership.

It’s a game of “bait and switch” and LCFS advocates need to understand one thing:  let’s keep petroleum flowing into America from our Canadian friends.  The last thing America needs is more oil from some of the world’s most unstable regions.

America needs to preserve its Canadian energy partnership

Wednesday, August 11th, 2010

A recent anti-oil sands media campaign attempts to mislead the American public in four cities by targeting the Canadian tourism industry.

The ad campaign: “Rethink Alberta,” is paid for by a U.S.-based activist group and attempts to foster a negative view of the Canadian province among American tourists.  The ads frame oil sands exploration in the region as destructive to local communities and the environment.

The truth is Canadian oil producers adhere to some of the most stringent environmental regulations in the world— and the LCFS illusion of “dirtier” Canadian oil is a fabrication of such groups.  Now more than ever, the U.S.-Canadian strategic energy partnership must be preserved.  Tumultuous times in other energy bearing regions of the world should only strengthen the bond between the two neighboring countries.

Rob Renner—Alberta’s environment minister— slammed the misleading ad campaign:

I think most people, given the opportunity to see both sides of the story… are going to see through what amounts to a significant amount of rhetoric in these anti-Alberta campaigns.”

Canada provides the American public with one out of every six barrels of oil.  As proponents of LCFS continue to focus on limiting the importation of Canadian oil, Americans still need the resource to maintain their modern lifestyles.  More importantly— unity with our friends to the North is a major component of America’s strategic position in the world.

In fact, Alberta’s oil producers are more efficient than ever— and oil production in the province counts for a mere 5% of the country’s total greenhouse emissions.  This is a far cry from the sentiment found in the misleading ad campaign targeting the province.

Americans need affordable energy—and restricting the flow of Canadian oil to America based on mythologies like LCFS end up inflating prices at the pump.  In fact, LCFS proponents hurt the very people they claim to protect:  everyday Americans.

Whatley Featured on “Trucker Radio”

Thursday, August 5th, 2010

CEA vice president Michael Whatley was a featured guest last Thursday on XM Radio’s “The Dave Nemo Show,” a favorite morning drive program of the trucking industry, where he discussed the latest movement on a national LCFS, and took the opportunity to explain some of the findings from CEA’s latest study on the economic and energy impacts of the policy.  Listen to the full interview HERE.  The following are a few key comments from Michael:

  • “Even the guys that have created this program will admit none of the low carbon fuels that they are trying to force drivers into using are ready for primetime. And the vernacular that they use is that this is a technology-forcing regulation, which means that if we mandate that people use it, then someone will come along and make it.  Our economy can’t stand that kind of whipsaw right now.”
  • “Consumer Energy Alliance actually put out a study about a month ago that showed that if you put a low carbon fuel standard in place, it’s going to raise gas and diesel prices by 90 percent over five years, and up to 170 percent over ten years. So we’re basically going to go anywhere from doubling to tripling our gas prices for the next ten years…”
  • “You can get people to drive less. You can get people to burn less gas … These are all different ways that you can try and reduce emissions, [but] at the end of the day when you’re talking about diesel or you’re talking about gasoline, a gallon is a gallon is a gallon. [Y]ou cannot reduce the carbon emissions that are coming off of combusting a gallon of diesel or a gallon of gasoline.  They call it a hydrocarbon for a reason.”
  • “Cellulosic ethanol, and renewable diesel; those are great things.  But the fact is that our economy is completely dependent on being able to move goods around the country, and being able to move people around the country and so we can’t take gasoline and diesel off the table until those other fuels are ready for primetime. “
  • ”We did a forum on low carbon fuel standards in Boston last month and we had Anne Lynch from  the Massachusetts Motor Transportation Association up there come and speak at the forum and she said … 93.5 percent of all goods in Massachusetts are coming from the bed of a truck. … Now if you’re going to double your transportation costs for everything that goes in the grocery store or everything in a furniture store in the northeast, what is that going to do to the prices of those things? The economic ripple effect … would be absolutely extraordinary.”
  • “There is a climate change and energy bill that Senator [Harry] Reid intends to bring up sometime this fall and we fully expect to see folks trying to impose a low carbon fuel standard on that bill. And we also expect, frankly, that we’re going to see some folks talking about an amendment on the OCS bill and try to get a low carbon fuel standard in there… So fortunately right now it looks like we’ve dodged a bullet, but we can’t really rest on our laurels at this point.”

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