Page 10 - NorthAmOil Week 24 2021
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NorthAmOil                                        POLICY                                          NorthAmOil











































       Biden mulling relief for US oil




       refiners from biofuel quotas





        US               US President Joe Biden’s administration is con-  by large companies such as ExxonMobil.
                         sidering giving oil refiners more relief from bio-  The prices of renewable identification num-
                         fuel mandates, said anonymous sources quoted  ber (RIN) credits – the compliance mechanism
                         by Reuters in an exclusive. The oil industry says  used for the RFS – sharply increased through
                         the mandates are expensive and could lead to  April because of rising global demand for bio-
                         jobs losses if refineries are closed.  fuel feedstock. RIN prices are now higher than   As of May 28,
                           US law, under to the Renewable Fuel Stand-  at any time during the 13-year history of the
                         ard (RFS) programme, requires petrol refiners to  programme, the Energy Information Adminis-  corn fuel ethanol
                         blend biofuel into their fuel supply, or buy credits  tration (EIA) reported earlier in June.
                         from those that do blend in the renewable fuel.  As of May 28, corn fuel ethanol D6 RIN prices   D6 RIN prices
                           Small oil refineries, with a capacity of less  had risen by 129% since the beginning of the
                         than 75,000 barrels per day (bpd), can ask for an  year, and biomass-based diesel D4 RIN prices   had risen by
                         exemption if they would face financial hardship  had increased by 96%. Biomass-based diesel is   129% since the
                         by adhering to the RFS.              made from soybean oil.
                           Biden, who has made increasing the use of   Reuters reported that Democratic senators   beginning of the
                         renewable energy because of climate change a  Chris Coons and Tom Carper of Delaware have
                         cornerstone of his administration, faces pressure  held at least two recent discussions with Michael   year.
                         from trade unions and from senators in whose  Regan, head of the US Environmental Protec-
                         states the struggling refineries are located. Gaso-  tion Agency, which administers the RFS, to dis-
                         line demand in the US slumped during the lock-  cuss relief for refiners. Delaware has one small
                         down for coronavirus (COVID-19).     refinery.
                           The RFS, to boost the biofuel industry, has   Two of the sources told Reuters that options
                         strong support in the Midwest where much of  such as a general national exemption, lowering
                         the feedstock for ethanol – corn – is grown.  the volume of biofuel that refiners must blend,
                           Under the previous US administration of  or creating a price cap on RINS were discussed.
                         Donald Trump, a controversy arose because of  Only eight refineries are now left out of the 17
                         the number of oil refiners who gained exemp-  that operated on the US East Coast in 2000, the
                         tions, even including some small refiners owned  news service reported.™



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