Recently came across an interesting article regarding the disputes between petroleum marketers and the Wisconsin legislature over low-carbon emission standards. Seems this proposal is causing some uproar since Wisconsin has a dependency on oil supply from Canada and the process for refining Canada's crude has a higher greenhouse gas than refining light crude. The legislative proposal create an increase in gas prices and eliminate jobs. Not good for the Badger state.

In today's tug-of-war between "going green" while not adding to the recession Wisconsin's debate is certainly one to watch.

Read the full article

As many of you know, Marcellus Shale is a layer of rock with containing significant amounts of natural gas. In addition to making land owners very happy (see article), it seems that companies are jumping on the bandwagon for their share as well. From El Paso Corp to the recent Anadarko joint venture with Mitsui, we'll see how the magnitude of this new segment of the industry matures.  (Anadarko news article)

Below is a recent CNBC Mad Money episode where Jim Cramer speaks to Anadarko Petroleum CEO, Jim Hackett about the recent joint venture.

The current issue of the Petroleum Marketers Association of America (PMAA) has an article by Mark S. Morgan, Esq. PMAA Regulatory Counsel regarding the EPA's delayed decision on whether to allow E-15 gasoline blends for use in conventional fueled vehicles. There is an interesting debate on if the EPA is spending its extra time wisely to make their determination. It seems the EPA is focusing their extra time testing the effects of ethanol blends on automobile emissions systems. However, a higher level of concern among petroleum marketers are the potential negative consequences on UST corrosion rates, degradation of plastic piping and rubber gaskets / seals in fuel dispensers.

Mr. Morgan brings an interesting issue to light and challenges how much power of choice marketers will have regarding this issue.

Read the full PMAA article

The IEA has declared a bearish outlook on the refining industry which seemingly supports the views of Kilduff who recently responded to Branson's comments regarding a global oil shortage. If you recall, Kilduff believes the underlying problems are with refining bottlenecks, not oil shortages

In a Dow Jones news article published in Downstream Today, the IEA recently predicted the "gloomy outlook for the refining sector is expected to linger through 2011." They imply that refinery construction and the consumption reduction create the excess capacity. This in turn is causing refiners to limit output.

Ding, Ding - round 1 goes to Kilduff.

Read the full article

Recently, CNBC kicked off a debate between John Kilduff and Dr. Robert Hirsch regarding comments from Richard Branson regarding a pending oil shortage within the next 5 years.  Branson's apparent warning to the British government was that the impact on the global economy will be worse than the financial crisis.  (read full Branson article)

Kilduff's opinion was that the issue at hand is a refining bottleneck not an oil shortage.  With only a 78% capacity in refining, we are setting ourselves up for more dependency on foreign oil.  Hirsh on the other hand chooses the side that the oil availability decline won't be fixed and will drag the world GDP down causing oil prices to escalate.

In a recent article discussing President Barack Obama's approach regarding the climate bill, it appears the "sales pitch" now leans towards a job initiative approach versus an environmental initiative. This seems to have caught some of the environmentalist groups off guard. It will be interesting over the next few months to see how government, advocate and public opinions shake out.

Read Ian Talley's article, "Obama Chases Economy-wide Climate Bill as Hurdles Grow" (1/29/2010)

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