Green Laws Mean $3 Gas A Thing Of The Past


Even as the United States continues to produce gasoline at a pace that surpasses the most optimistic production forecasts in recent years, the American Automobile Association says that Americans will never again see gas prices below $3 per gallon.

“The days of a national pump price below $3 is probably a thing of the past,” Chris Plaushin, director of Federal relations with AAA, told the Senate Energy and Natural Resources Committee.

This week, gas prices in the United States have spiked for the second time this year, up an additional 15 cents to a national average of $3.64 per gallon.

Chief Executive Bill Klesse of the oil refinery Valero told the Senate panel that the gas price hikes result from a complicated combination of circumstances that exist in the international oil market. Not the least of the causes of U.S. gas price hikes, Klesse said, is a government mandate called the Renewable Fuels Standard (RFS) that requires refineries to blend biofuels into petroleum products in the United States or buy biofuel credits, or RINs, from renewable fuel producers.

“Today the most important thing affecting us is the renewable fuel standard,” Klesse said. “The renewable fuel standard is out of control.”

Currently, the law is close to mandating more ethanol than can be effectively blended into fuel at 10 percent per gallon, causing fuel refiners to have to purchase RINs. Prices for the renewable energy credits reached record highs of $1.29 each this week, a cost passed on to the consumer.

“This has led to higher prices and substantial uncertainty in the gasoline market,” Klesse said in his prepared testimony. “The RFS needs to be completely redone.”

Senate Democrats largely rejected the idea that RFS was at the root of higher U.S. gas prices.

“I don’t think it’s fair to blame the renewable fuel standard,” Senator Al Franken (D-Minn.) said, pointing out that biofuel facilities are starting to pop up throughout America.

Senator Debbie Stabenow (D-Mich.) said that refiners simply disliked RFS because biofuel producers could impact petroleum profits.

“Why would you want competition? You want to control the market,” Stabenow said.

Chairman of the Natural Resources Committee, Senator Ron Wyden (D-Ore.) suggested that, while the government requirements are driving up fuel costs, refineries might also be reaping windfall profits.

“Supply is up, demand is down, but prices at the pump are still stubbornly high,” Wyden said.

But oil industry representatives present at the hearing said that global supply and demand must be taken into consideration as well.

“Refiners such as Valero are in the position of being price takers, not price makers,” said Klesse.

Personal Liberty

Sam Rolley

Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After covering community news and politics, Rolley took a position at Personal Liberty Media Group where could better hone his focus on his true passions: national politics and liberty issues. In his daily columns and reports, Rolley works to help readers understand which lies are perpetuated by the mainstream media and to stay on top of issues ignored by more conventional media outlets.

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  • Warrior

    National Resources Committee? Stabenow and the esteemed senator from Minn. on a National Resources Committee? What “qualifications” do these two hold that would warrant placing them on any committee other than “what’s for lunch” committee. Good Grief!

  • monizame

    hahahahahaha you stupid amerikans…. amazing

    • me

      Blame it on the federal government. All tyrants. we need a revolution at the ballot box in 2014 and 2016. Hopefully by then most of the ignorant voters will have woken up and don’t make the same mistakes as in the past. Go McCain wacko birds.

    • FreedomFighter

      If you are French?

      The French surrendered long ago…every time.

      Laus Deo
      Semper FI

  • DavidL

    “Even as the United States continues to produce gasoline at a pace that
    surpasses the most optimistic production forecasts in recent years…”

    How is that “drill, baby, drill” thing working out for you conservatives? Electric cars are getting better every year. See Prius, Leaf, Ford Focus, Chevy Volt, Tesla and test drive some…you know… progressive ideas. Electric cars will reduce the demand for gasoline, lower its price, and make the “renewable fuel standard” irrelevant.

    • FreedomFighter

      “progressive ideas”

      Sorry, being forced to buy inefficient, limited range, and expensive cars with battery poisons and high energy production costs that rely on coal to electricity or nuclear electric generation is the “progressive ideas” you refer to. If these things were cost effective nobody would need to be coerced into buying them.
      BTW I believe it was conservatives that invented the electric car, promoted them…progressives only promote electrics for the purposes of totalitarian control. Electrics have failed due to impractical limits on range, expensive environment poisoning batteries, high initial costs, limited life of expensive battery, lack of recharging stations…
      Progressives promote an idea…have no idea how to implement it, but force the idea by edict anyway…totalitarian control.
      I promote a hydrogen fuel based society, including H3 fusion electric generation…no idea how to implement it…but im not forcing anyone to buy it, progressives are.

      Laus DeoSemper FI

      • Kent Taylor

        Freedom Fighter is full of it.

        An EV owner…..and free from oil…..

  • TIME

    Dear people,

    This has nothing to do with GREEN – other than the fact that the Petro Dollar is dead, that’s the only green in this equation.
    You are all being lied to, and the green factor is the face of the lie game.

    As I said on 7/16/13 post, gas will be going up by no less than 20% by summers end, Then it will just keep going up and up. Here gas on Friday 7/12/13 was just $3.35 9/10 per gallon, { on 7/16/13 its now $3.55.9/10 per gallon} that’s in four days it went up over 5%.

    Open your eyes people, this will have an effect on your food cost your home energy bills, your tax’s. Your all being robbed blind by the criminal bankers who really do own this nation as well as just about all nations on the planet earth.

    Oh other than “Syria” “Iran” “China” “Russia” “India” and a few South American nations like Brazil, all of whom don’t fully grasp that they too are really owned by the IMF by way of their signing on to the UN Charter.

    Any of these nations looking like a war may break out any time soon?

    How about the fact that Libya and Egypt were also on that list just a few years ago? Is your picture getting clear yet?

    Peace and Love,

    • FreedomFighter

      Global squeeze play, to suck up the money.
      Getting ready to sell my holdings, pay cash, build a home that is “off Grid” completely — go electric cars with one gas flexfuel vehicle for distance travel.
      Will save thousands just in taxes. No electric bill/tax, no bill/sewer tax, water bill/taxes, little to no gas tax
      Screw the system.

      Laus Deo
      Semper FI

  • me

    Hell of it is we are about to have another shortage in the food supply just to put ethynol in gasoline. all that does is make your car burn more fuel. I get my gas from a source which offers a 10% blend and another with less. iI gained about 5 mpg more with the less ethynol blend. Id almost bet if the blend that is being forced on us was going away mileage would go way up. that would rob states of gas taxes so they’d probly increase that too. getting back to the food shortage, the cornbelt had too much rain this spring and some farmers had trouble getting corn planted. I didn’t hear if they got it in or not. In western kansas they are still under severe drough They irrigate ,but how much longer will the groundwater last with 3 years of no rain. with all this we are going to really start feeling feed and food shortage. it is going to get serious. We don’t need the ethynol in gas because it burns very inefficiently causing more consumption. we all know the oil companies love consumption.

    • Vash the Stampede

      Ethanol has less energy than gasoline. However it has more octane and is corrosive.