{"id":12721,"date":"2012-06-19T20:01:27","date_gmt":"2012-06-20T01:01:27","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=12721"},"modified":"2016-03-23T20:02:17","modified_gmt":"2016-03-24T01:02:17","slug":"new-oil-industry-report-on-wrong-track","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2012\/06\/19\/new-oil-industry-report-on-wrong-track\/","title":{"rendered":"New Oil Industry Report on Wrong Track"},"content":{"rendered":"<p>The only surprise about the new report released today by the Western States Petroleum Association is what it doesn\u2019t come right out and say: that the oil industry is pretty sure that those of us who believe climate change is one of the biggest issues facing California today are actually conspiring to put them out of business.<\/p>\n<p>The report, &#8220;Understanding the Impact of AB 32,&#8221; is based on public data but was processed through the Boston Consulting Group\u2019s proprietary modeling using the industry&#8217;s assumptions about the future.  It reads less like an actual analysis of the potential impacts of California\u2019s landmark climate law, and more like a laundry list of &#8220;woe is me&#8221; excuses for the oil refinery industry \u2013 not incidentally, the industry that paid for the report &#8211; claims that California&#8217;s innovative clean fuels policies will ruin their businesses.<\/p>\n<p>The biggest problem with the report is its assumption that no one \u2013 none of California\u2019s myriad economic sectors \u2013 will make changes aimed at reducing our dependence on oil, or at curbing dangerous greenhouse gas emissions. For example, even as refineries face falling demand for gasoline, in California and across the nation, this report implicitly assumes that refineries won\u2019t adopt more efficient technologies, or change their volume of production in response to reduced demand.<\/p>\n<p>In fact, the idea that California\u2019s refineries would fail to do a brisk business in California, even under AB 32, is a load of hooey. California still represents one of the biggest and most lucrative markets for gasoline. And yet a significant amount of the fuel produced in California is currently shipped out of state, which certainly provides a substantial cushion for any reduction in local demand.<\/p>\n<p>What California\u2019s refineries should be focused on is how to become a leader in this new clean fuel economy. Low carbon fuel is going to be the fuel of the future, in high demand not only in the U.S. but abroad.  By focusing now on making the changes needed to produce this kind of fuel, California\u2019s refineries could get a jump start on this growing market \u2013 instead of bemoaning the slowing demand for their existing, outdated fuels.<\/p>\n<p>There\u2019s a reason they\u2019re called fossil fuels, after all.<\/p>\n<p>&nbsp;<\/p>\n<p><em>By <span style=\"color: #0000ff\"><a href=\"http:\/\/www.edf.org\/people\/timothy-oconnor\">Tim O&#8217;Connor<\/a><\/span> and <span style=\"color: #0000ff\"><a href=\"http:\/\/www.edf.org\/people\/james-fine\">Jamie Fine Ph.D.<\/a><\/span><\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The only surprise about the new report released today by the Western States Petroleum Association is what it doesn\u2019t come right out and say: that the oil industry is pretty sure that those of us who believe climate change is one of the biggest issues facing California today are actually conspiring to put them out &#8230;<\/p>\n","protected":false},"author":919,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[],"class_list":["post-12721","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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