The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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DA T E L INE Obama administration delayed finalizing next year's biodiesel volume requirement under the Renewable Fuel Standard. "These are solid numbers that show the biodiesel industry is on pace to meet the 1 billion gallon RFS requirement this year, but they also reflect some of the missed opportunities for growth and jobs that we've seen with the loss of the tax credit and the continued uncertainty about next year's RFS volume," Steckel said. "With the tax credit and clear RFS growth in place, we think these numbers would be better." Last year, the biodiesel industry produced a record of nearly 1.1 billion gallons, support- ing more than 39,000 jobs across the country and helping to reduce U.S. dependence on skyrocketing global petroleum prices. Biodiesel is the first and only EPA-desig- nated Advanced Biofuel in commercial-scale fuel production across the country. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is produced in nearly every state in the country. Biodiesel can be used in existing diesel engines and meets strict specifications of ASTM D6751. REFINERS TO U.S. HOUSE: HIGH CRUDE OIL PRICES DRIVE HIGH GASOLINE PRICES High crude oil prices are the primary factor behind high gasoline prices, American Fuel & Petrochemical Manufacturers President Charles T. Drevna told a House subcommit- tee. The most effective actions to help U.S. consumers would be to increase U.S. oil pro- duction, increase oil imports from Canada and reduce overregulation, Drevna said. Drevna noted that, according to the U.S. Energy Information Administration, "only six cents of every dollar that Americans pay for gasoline goes to the refining industry that AFPM represents. The cost of crude oil accounts for 76 cents, followed by taxes at 12 cents, and distribu- tion and marketing also at six cents. "Refiners, as well as petrochemical manufacturers, are the first custom- ers of a barrel of oil and the first to be impacted when oil prices rise," Drevna said in written testimony for a March 7 hearing on gasoline prices by the House Subcommittee on Energy and Power. "Refiners don't set the price of oil any more than automakers set the price of steel, bakers set the price of wheat or res- taurants set the price of cattle," Drevna added. "Oil is an international commodity that trades in the free market and its price is not controlled by its purchasers." Drevna called on the Obama adminis- tration to allow increased exploration and development of vast oil and natural gas resources on federal lands and in feder- ally controlled waters to meet U.S. energy needs, create jobs and improve economic and national security. In addition, Drevna advocated approval of the Keystone XL pipeline to bring 700,000 barrels of oil a day from Canada to Gulf Coast refineries. Drevna said overly burdensome and conflicting government regulations threaten U.S. competitiveness. He said some regulations are not doing any- thing to protect the environment but only jeopardize jobs and raise consumer costs. Examples of these are Tier 3 reg- ulations to reduce sulfur in gasoline, greenhouse gas regulations, lengthy per- mitting delays, and requirements under the Renewable Fuel Standard involving biofuels, Drevna said. Oil prices have risen recently because of concerns about the future of Iranian oil production, increased oil demand in developing nations and the decline in the value of the U.S. dollar, Drevna said. "Historically, the best mechanism available to address high crude oil prices has been to take actions to increase the global crude oil supply," Drevna said. AFPM, the Ame r i c an Fue l & Petrochemical Manufacturers, is a trade association representing U.S. manufactur- ers of gasoline, diesel, other fuels and home heating oil. CALENDAR OF EVENTS MAY AREE 2012 May 1 – 3, 2012 Atlantic City Convention Center Atlantic City, New Jersey www.areetradeshow.com FW Webb Expo 2012 May 3, 2012 Barre Auditorium Barre, VT Hedge Solutions' Women in Energy Summit May 17, 2012 The Radisson Hotel Manchester, N.H. Contact: Kris Magnusson 800-709-2949 or kris@hedgesolutions.com National Association of Oil and Energy Service Professionals (formerly NAOHSM) Annual Convention and Trade Show May 20-24, 2012 R.I. Convention Center Providence, R.I. www.naohsm.org JUNE NEFI Visions Conference June 5-6, 2012 Sheraton Framingham Hotel and Conference Center Framingham, Mass. www.nefi.com COHA Cleaner Heat 2012 June 12-13 Fairmont Tremblant Mont Tremblant, Quebec www.symposium.coha.ca AUGUST PGANE Northeast Propane Show August 8-9, 2012 Holiday Inn Boxborough, Mass. www.northeastpropaneshow.com FUEL OIL NEWS (ISSN 0016-2396), Canada Publication Mail Agreement #1588621, is published monthly by Bev-Al Communications, Inc. 1030 W. Higgins Road, Suite 230, Park Ridge, Il 60068. Circulated free of charge to qualified individuals in the oil heating industry in the United States. Additional and/or personal copies are available on a paid subscription basis only. 1-year subscription rates: $28.00 USA. $40.00 Canada and Mexico via service postage. $90.00 other foreign countries via air-mail postage. Single copies: $8.00 U.S. via first-class postage. $12.00 other Canada/Mexico/Foreign via airmail postage. Payable in US currency. Periodicals postage paid at Park Ridge, IL and additional mailing offices. Copyright 2012 by Bev-Al Communications, Inc. Reproduction of any portion or portions of this publication is specifically prohibited without written consent. Postmaster: Send address changes to FUEL OIL NEWS, PO Box 4290, Port Jervis, NY 12771. 4 APRIL 2012 | FUEL OIL NEWS | www.fueloilnews.com