R Street Institute

Op-Eds

Oil refiners make a peace offering to the ethanol industry

by William Murray
July 5, 2018
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issues: Clean Energy, Energy and Environment, Fossil Fuels
originally published in The Hill
In an effort to break a nasty, decades-long political conflict between Big Corn and Big Oil, independent oil refiners are proposing an increase in the octane level of gasoline after 2022 that will both improve fuel efficiency and help bridge a deep divide over the future of ethanol use.

For an example of a profound government policy failure, look no farther than the Energy Independence and Security Act (EISA) of 2007 and its ethanol mandate. The law — with the best of intentions, of course — mandated the blending of corn ethanol into the U.S. gasoline pool to a level of 10 percent to help curb expensive foreign oil imports. Unfortunately, the law didn’t take into account the potential for technical hiccups, or unintended economic and political consequences.

[Read the rest of the op-ed over at The Hill.]

 

Image credit: tonton

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