Oilprice by Julianne Geiger - Sep 14, 2020
After shocking the oil industry with last week’s extension to a coastal drilling ban offshore Florida, Georgia, and a handful of other states, the Trump Administration said on Monday that is has rejected nearly the vast majority of retroactive biofuel waiver petitions that were pending review, according to a Reuters report.
Biofuel waivers are often given to oil refiners who are otherwise tasked with blending ethanol into their gasoline every year—or purchase tradable credits from refiners that blend with ethanol.
Refiners—especially small ones—have long argued that the requirements are cost-prohibitive. If they can prove economic hardship, they can be given a waiver.
The corn industry, on the other hand, argues that the federal government is in Big Oil’s pocket, and that it doesn’t take seriously enough the biofuel industry. The push-pull between the oil lobby and the corn lobby has created a massive political divide that is evident election after election.
More:
https://oilprice.com/Energy/Energy-General/Trump-Administration-Shocks-Oil-Industry-With-Biofuel-Waiver-Decision.html
