DEPARTMENT OF ENERGY FINALIZES STUDY ON CLEAN AIR IMPACT ON U.S. OIL REFINERIES
DEPARTMENT OF ENERGY FINALIZES STUDY ON CLEAN AIR IMPACT
ON U.S. OIL REFINERIES
WASHINGTON, Jan. 24 /PRNewswire/ -- The impact of the Clean Air Amendments Act of 1990 (CAAA) on U.S. oil refineries is the subject of a study released this week by the U.S. Department of Energy (DOE) and Cambridge Energy Research Associates (CERA).
DOE contracted with CERA to conduct a survey of U.S. refiners and product suppliers in the wake of enactment of the CAAA. The survey was conducted in early 1991, preceding the regulatory negotiation process through which compliance requirements were established for the oxygenated fuels program, which begins in 1992, and the Phase I reformulated gasoline (RFG) program, which begins in 1995. The study does not cover possible changes and associated costs for 1997 and 2000.
The CAAA is creating a new operating environment in the U.S. petroleum refining industry that will require substantial changes in refining facilities and the transportation fuels market.
CERA began its work on the study in the fall of 1990. A final report was provided to DOE on Jan. 21, 1992.
Some key findings of the CERA study include:
-- Generally, oxygenate supplies for the winter of 1992/93 are
expected to be adequate, assuming inventories are built in
-- Low-sulfur diesel supplies should be adequate to meet near-
term on-highway diesel requirements;
-- Refiners are expected to spend 4.0 to 7.0 cents per gallon on
additional capital and operating costs to meet low-sulfur
diesel fuel requirements;
-- The 1995 Phase I CAAA RFG requirements appear to pose no
significant technical problems for the refining industry, but
nearly all of the respondents will need to invest in new
refining units and/or change their operations to comply;
-- Refiners are expected to spend 5.7 cents per gallon on
additional capital and purchased oxygenates to meets 1995 RFG
requirements. This excludes 1995 operating costs changes and
potential additional costs that may be incurred in 1997 and
-- Regardless of the overall ability of the industry to
accommodate the provisions of the CAAA, the effect on
individual refiners will vary widely based on geographic
location, size and refinery configurations;
-- A potential barrier to achieving the goals of the CAAA is weak
coordination of federal, state and local requirements for
This study represents an early effort on the part of DOE to understand the impact of the CAAA and to assess the wide range of issues that will affect the U.S. refining industry and U.S. product suppliers over the next decade.
Other initiatives in this area include a major survey and technical analysis of refinery issues underway by the National Petroleum Council, and a survey by the Energy Information Administration to characterize oxygenate production, storage and transportation capability.
/NOTE: Copies of the executive summary of the report are available through DOE's Office of Public Inquiries, Room 1-E-206, DOE, Washington, D.C. 20585. Phone 202-586-5575/
/CONTACT: Phil Keif of the U.S. Department of Energy, 202-586-5806/ CO: U.S. Department of Energy ST: District of Columbia IN: OIL SU: EXE
MH -- DC035 -- 3322 01/24/92 17:47 EST