FYI, CARB stands for California Air Resources Board , CARBOB stands for California Air Resources Board Oxygenated Blend
also see http://www.planetark.org/dailynewsstory.cfm/newsid/18973/newsDate/10-Dec-200 2/story.htm Steve Spence Subscribe to the Renewable Energy Newsletter & Discussion Boards. Read about Sustainable Technology: http://www.green-trust.org [EMAIL PROTECTED] ----- Original Message ----- From: "Keith Addison" <[EMAIL PROTECTED]> To: <biofuel@yahoogroups.com> Cc: <biofuels-biz@yahoogroups.com> Sent: Friday, February 28, 2003 8:35 AM Subject: [biofuels-biz] Valero finds advantage in gasoline blend > http://www.planetark.org/dailynewsstory.cfm/newsid/19962/story.htm > > Valero finds advantage in gasoline blend > > USA: February 26, 2003 > > HOUSTON - Not following its competitors in the California gasoline > market has made money for Valero Energy Corp. (VLO.N), a spokeswoman > told Reuters this week, but analysts say the company isn't crowing > about it. > > "They really don't mention the advantage of sticking with CARB," said > Fadel Gheit, senior energy analyst with Fahnestock & Co. Inc. "This > particular attribute is not something they are highlighting." > > CARB is the shorthand name for a blend of gasoline mandated by the > state that is mixed with Methyl Tertiary Butyl Ether (MTBE) an > additive that reduces tailpipe emissions. > > "There is an advantage to be selling CARB," said Valero spokeswoman > Mary Rose Brown. > > Most refiners switched to making a different gasoline blend called > CARBOB, which uses ethanol instead of MTBE, at the beginning of the > year. Valero and fellow San Antonio-based refiner Tesoro Petroleum > Corp. (TSO.N) did not, opting to wait until being required to switch > to CARBOB at the beginning of 2004. > > Since the beginning of this year, the wholesale price for CARB has > been running about 4 cents per gallon higher than CARBOB. Last week, > the difference was even wider with CARB at times priced eight cents > higher than CARBOB. > > Valero won't say how much money it is making from being one of two > big refiners producing CARB, but price did play a role in the company > changing its mind about making small amounts of CARBOB this year. > > "We at one time said we were going to make some CARBOB this year, but > we looked at it and the economics weren't there," Brown said. > > A Tesoro spokesperson was unavailable for comment. > > A CARBOB price spike was expected as shortages of the new gasoline > were expected. Those shortages have not developed, but price jumps > may occur as refiners begin making the summer formula of CARBOB, > analysts have said. > > The switch to CARBOB is being mandated by the state to reduce > pollution from automotive fuels. MTBE and ethanol both cut the amount > of waste in the car exhausts, but MTBE has been found in California > groundwater, raising fears of another source of pollution from the > fuel. > > Last year, the state pushed back the date from switching to CARBOB > from Jan. 1, 2003 to Jan. 1 2004. > > REUTERS NEWS SERVICE > > Biofuels at Journey to Forever > http://journeytoforever.org/biofuel.html > Biofuel at WebConX > http://webconx.green-trust.org/2000/biofuel/biofuel.htm > List messages are archived at the Info-Archive at NNYTech: > http://archive.nnytech.net/ > To unsubscribe from this group, send an email to: > [EMAIL PROTECTED] > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuels list archives: http://archive.nnytech.net/ Please do NOT send Unsubscribe messages to the list address. To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
