Saudi Aramco CEO will not attend Houston energy conference

The chief executive of Saudi Arabian state oil company Aramco will not attend an energy conference organized by S&P Global next week, the event's updated schedule showed.

Amin Nasser, head of the world's largest oil company, had been listed as delivering a keynote address at CERAWeek, the largest gathering of high-profile oil executives and energy ministers.

Nasser was one of the few high-level Saudi officials on this year's schedule and has been a regular presence at past CERAWeek conferences.

The agenda for this year's event is dominated by major oil company executives and US government officials, with fewer Middle East executives and officials.

A record 7,000 people have signed up for the week-long event, which includes discussions of fossil fuels, clean energy and advanced energy storage.

Recent clashes over supply and demand between the Organization of the Petroleum Exporting Countries, Europe (OPEC) and the US have led to some visible vacancies. Unlike in past years, the event's agenda has no oil ministers from Iraq, Kuwait, the United Arab Emirates or Russia.

Top energy executives and officials from around the world will descend on Houston as the political fallout from Russia's invasion of Ukraine a year ago continues to distort global oil supply lines and put long-term energy security front of mind for governments.

Oil company chiefs and ministers will make their case for investment in all forms of energy - fossil fuels and renewables - to meet rising demand and at the same time accelerate the move toward the low-carbon industry of the future.

The war in Ukraine sparked a rally in crude oil and fuel prices that led to record industry profits, prompting the US government and others to accuse Big Oil of profiteering and for Britain and some other governments to impose windfall taxes on energy companies.

Big Oil executives and US government officials will likely trade blows publicly again as they did at last year’s event. While the US and many Western governments continue to call on oil firms to pump more, executives at top oil firms say they have a duty to their shareholders to maximize returns for staying invested in an industry which faces an uncertain long-term future.

"We will get a sense of how companies' strategies have been changed by the events of the last year," said Dan Yergin, the Pulitzer Prize-winning author and vice chairman of conference organizer S&P Global, in an interview.

BP's Looney will share the stage with Hertz car-rental CEO Stephen Scherr, whose firm has become an energy transition champion with plans to buy tens of thousands of electric vehicles from General Motors, Polestar and Tesla.

"The industry is on board with the energy transition, ESG and decarbonization, but there is a recognition that we are going to need hydrocarbons from an energy reliability and security standpoint," Pat Jelinek, EY Americas oil and gas leader, said of the return to prominence of Big Oil executives.

Top shale executives also will get less of the limelight. US shale also battled with the Biden administration over oil drilling restrictions and a lower investment in new output. Shale has become less of a factor in global markets, and tensions between OPEC and shale are less intense than they used to be.

Executives from shale bigs Hess Corp, EQT Corp and Pioneer Natural Resources last year dined with the late OPEC Secretary General Mohammad Barkindo. He received a gift bottle of "Genuine Barnett Shale," the oilfield that launched the shale revolution.

US shale also has been overshadowed by Big Oil as the companies grapple with slower gains and tight-fisted investors. Total US oil production is forecast to rise modestly this year - less than 600,000 bpd – as compared to a jump of about 2 million-bpd in 2018.

“US exploration and production companies have moderated growth," said Andy Hendricks, CEO of US driller Patterson-UTI, and leaving OPEC in charge of oil prices.

"There's never been such a focus on innovation of technologies across the energy industries," said S&P's Yergin.

Some 225 start-ups will participate, a 60% increase from a last year, many of which got a shot in the arm from Biden's Inflation Reduction Act, which provides tax credits and incentives for low-carbon and clean energy technology.

US Energy Secretary Jennifer Granholm and White House clean energy advisor John Podesta will lay out implementation of the Inflation Reduction Act, said S&P Global's Yergin.

"The amount of renewables that we're going to have to build over the next decade is enormous, and I don't think everybody has really digested the scope of that," said Andres Gluski, CEO of energy and utility giant AES Corp.

 

 

 

 

Israel: Where is Benjamin Netanyahu?

Herb Keinon pointed in The Jerusalem Post, Israel will mark another 75-year anniversary, this one more joyous – the country’s 75th Independence Day. Nevertheless, there is no joy in the air right now and there does not seem to be any plans to host foreign dignitaries at this year’s state celebrations.

Even if they were invited now, it does not seem like any foreign head of state would want to travel here. The feeling in Israel this week is one of anarchy and as if there is no one in charge of the country.

This reminds of  January 23, 2020, more than 50 heads of state and members of royal families traveled to Jerusalem to mark a momentous occasion – the 75th anniversary of the liberation of Auschwitz-Birkenau. Vice-president Mike Pence, Prince (at the time) Charles, French President Emmanuel Macron, German President Frank-Walter Steinmeier, Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, King of Spain Felipe VI, and many more were all there. It was recognition of the victory over the Nazis and the tremendous accomplishment the Jewish people, in general, and the State of Israel more specifically have seen in the years since.

There are the weekly protests (and sometimes more) that are bringing hundreds of thousands of Israelis out to the streets screaming against what they perceive as the end of democracy; there are the images from the Knesset of MKs jumping on tables and being pulled by ushers out of committee rooms; there are the terrorist attacks that have claimed the lives of 14 Israelis in just one month; the settler pogrom in Huwara; the weakening of the shekel; the hike in the interest rate; the tech executives who are pulling money out of Israel, and more.

After the tragic murder of Hillel and Yagel Yaniv in Huwara, Finance Minister Bezalel Smotrich used the phrase “the landlord has gone crazy,” an expression meaning that it is time to show the Palestinians that there would be an escalated IDF response. Well, it seems that the owner has gone crazy and the country with it.

The questions are, what has happened to Prime Minister Benjamin Netanyahu? Where is he? Why is his presence not being felt? Why is his voice barely being heard?

A look at the 51 front pages in the recent two month shows Netanyahu only about 12 times on the front page.

This is in comparison to previous periods when he served as prime minister and he seemed to be everywhere. He was speaking at public events, conferences, doing media interviews, traveling the globe and hosting world leaders in Jerusalem. Every statement was setting the national agenda – whether about Iran, the fight against COVID-19 or another economic policy that his government was unveiling.

In the last couple months, though, his presence is not felt. Members of his own party wonder out loud where he has disappeared to. He is not setting the agenda; it is being done by others like Justice Minister Yariv Levin, who is driving the judicial reform steamroller, and National Security Minister Itamar Ben-Gvir, who is the one getting the headlines when it comes to West Bank terrorism.

It is true that after the election when asked about his new coalition partners – Ben-Gvir and Smotrich – Netanyahu said that he would be in charge, but in practice that does not seem to be the case. Even his past critics could appreciate knowing that his hand was on the wheel and that he was running the show.

It is unclear where he is. His voice is not heard on the main issue that is dividing the country – judicial reforms – and while he can claim that it is because the attorney-general has banned him from doing so because of his trial, which is just an excuse.

Even regarding terrorism, his voice is barely being heard and his presence is not being felt. In the past, Netanyahu knew how to create a sense of calm, but after 14 people were killed in a month, it feels like he is not even trying.

Why isn’t Netanyahu visiting the scenes of the attacks? Except for the attack in Neveh Ya’acov, he hasn’t gone to any, not even to the one at the Ramot bus stop where the Paley brothers – Ya’acov and Asher – were murdered. Why isn’t he calling one of those special prime ministerial 8 p.m. addresses like he did regularly during COVID, to address the nation and try to ease their concerns?

Some politicians explain that it has to do with the advisers who are around him. He does not yet have full-time spokespeople, diplomatic advisers and more. Others claim that it is just not that important right now and that his focus is on passing the judicial reform, which he wants to advance out of a personal vendetta against the judiciary.

Others say that he is controlled today more than ever by his wife and son, and that he has become closed off to the more moderate players who used to surround him.

There are people who claim that Netanyahu’s real plan is to create chaos so that he can then strike a plea deal that will allow him to remain prime minister. The situation will be so bad, this theory goes, that the prosecution will agree to a deal just to stop some of the craziness.

 

 

Bangladesh exports reported at US$4.63 billion for February 2023

Bangladesh export earnings were at US$4.63 billion in February 2023, the lowest in four months; although overall receipts rose 7.81%YoY led by apparel, leather and leather goods shipments.

Last month’s receipts took the total proceeds from the shipment of goods to US$32.44 billion during first eight months of the current financial year. The growth moderated to 9.56%.

The latest data comes at a time when apparel exporters are complaining about falling orders from global clothing retailers as high inflation erodes the purchasing capacity of consumers in Europe and the US, the two biggest export destinations for Bangladesh.

The impact of the weak global demand is already visible for other major sectors such as jute and jute goods, frozen fish and shrimp.

Garment exporters say the overall shipment in volume declined but receipts increased in value.

“We are getting orders for high-value clothes. This has helped us post positive growth in earnings,” said Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“Once we were used to getting orders to make jackets worth US$15-US$20. Now we are receiving orders to make jackets that are sold at US$100. This is a very positive development.”

Earnings from apparel exports, which accounted for about 85% of national shipments in July-February, rose 14.06%YoY to US$31.36 billion.

Knitwear exports brought home US$17.06 billion, up 13.21% as compared to a year earlier. Woven shipment generated US$14.30 billion, a spike of 15.08%.

Bangladesh has performed well in new markets too, said the BGMEA chief.

“But overall export declined in quantity. If we take into account the expansion of factories in the past two years, we will see that a number of them are running below capacity,” said Hassan, also the Managing Director of Giant Textiles.

The war in Ukraine, geopolitical tension and high consumer prices has eroded the buying capacity of consumers in Europe and the US. “For this, we are worried,” he said.

“But the good news is a number of buyers have shown interest in placing higher orders. So, Bangladesh’s share in the global apparel market will increase in 2023.”

Leather and leather products exports rose 6% to US$832 million in eight months. Other major sectors – home textiles, jute and jute goods, frozen and live fish and agricultural products – suffered more than 20% decline in earnings.

Frozen fish and shrimp exporters recorded a nearly 22% decline and fetched US$318 million.

“The volume of exports has declined too. It has resulted in a stockpile as the shipment is not taking place as it should be,” said Md Amin Ullah, President of the Bangladesh Frozen Foods Exporter Association.

“Exporters are selling products at reduced rates in order to bear operational expenses.”

He expressed a hope for a rebound in export receipts from frozen fish and shrimp, grown mainly in the southwestern coastal region.

Amin said because of the falling imports, there will be a shortage of products in the western market.

“The demand will improve as people can’t stop eating despite the war. So, prices will rise.”

Helal Ahmed, Chief Operating Officer of Janata Jute Mills and Sadat Jute Industries Ltd, also expects a revival in export earnings in the second half of 2023.

Exports from jute and jute goods, one of the few sectors for which raw materials are locally available, plunged 24% to US$610 million in the eight months.

The sector suffered drops in shipment for the shrinking demand for jute yarn among carpet makers, the main user of jute yarn. The use of alternative yarn following a spiral in prices of jute in Bangladesh has also affected the export performance.

Ahmed said reduced prices of jute would lead to increased use of jute yarn, “The situation is expected to improve.”

A sharp depreciation of the taka against the US dollar has made exports from Bangladesh attractive in the global markets. The local currency has lost its value by about 25 per cent against the American greenback in the past one year.

“Besides, orders for garments from major markets will shift away from China. So, there is an opportunity to elevate garment shipments,” said Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue.

He said the prices of cotton, yarn and other items have increased and the latest export earnings figure reflects the price effect of the garment items shipped.

“The growth is price-driven to some extent as the prices of raw materials have increased. Until now, the demand side remains depressed.”

The trade expert called for an increased focus on regional markets as demand is growing there.

“At the same time, productivity would have to be raised and the cost of doing business would have to be brought down.”

 

Defending submarine cables in Back Sea

Deep in the world’s oceans and seas lies a network of submarine communication cables connecting continents and regions. This critical infrastructure, owned mostly by international consortia of private telecommunication companies, spans, in total, more than 1.3 million kilometers and handles over 95% of the world’s data.

The rise of projects like SpaceX’s Starlink and their use in the war in Ukraine has increased the attention on satellites and space security. However, submarine cables remain a crucial yet underappreciated part of the global communications system. The widespread use of these cables by private individuals, businesses, and government agencies makes their protection a matter of national and international security.

As fighting rages on in Ukraine, the cables in the Black Sea could be in danger of disruption. Accidents have caused damage to the cables in the past, and stepped-up naval activity in the region could raise the risk of vessels accidentally cutting the lines lying on the seafloor.

Moreover, deliberate Russian attacks on these cables, either through cyber operations or physical destruction, follow the Kremlin’s modus operandi of targeting critical infrastructure to gain strategic advantage without necessarily delivering decisive blows against its enemies.

To ensure regional security in the communication and data spheres, Black Sea states must increase their emphasis on protecting submarine cables, including within the format of the North Atlantic Treaty Organization (NATO) or novel regional frameworks.

Unlike the attacks on land-based power grids and energy pipelines, the threat to submarine cables is still a hypothetical national security concern as no definitive case of sabotage by a state actor has been confirmed thus far.

However, some defense officials, notably the chief of the British Defense Staff, Admiral Tony Radakin, have begun to emphasize the security implications of the cables’ vulnerabilities, especially in the context of the Russian invasion of Ukraine.

Russia has been investing in capabilities that would allow specialized submarines to place explosives on the seafloor, physically endangering underwater communication infrastructure. In addition to the Russian navy, the Main Directorate of Deep-Sea Research (GUGI) — known as Russia’s “Deep-Sea Spetsnaz” — can undertake covert operations along the seabed.

NATO officials suspect that GUGI has been increasingly focusing on undersea cable networks in recent years. Notably, in January 2022, Norway detected damage to one of two fiber optic cables off the Svalbard archipelago; suspicions that the cable disruption may have been intentional grew later that year, after a mysterious explosion crippled the underwater Nord Stream natural gas pipeline, an incident that is still under investigation.

Skeptics argue that such concerns are exaggerated, especially since companies that own these undersea networks have been building redundancies to provide different data flow routes in case of a disruption to one cable.

Of the four Black Sea submarine cables, the only one physically connected to the territories in conflict is the Kerch Strait Cable, which links the occupied Crimean Peninsula with the Russian mainland. Not only is the cable owned by Rostelecom — Russia’s largest telecom firm — but any disruption to communications and internet in Ukraine through sabotage would affect Russian forces on the ground as well.

The primary objective of such an attack on submarine cables would be to create confusion and anxiety among the affected populations. The Kremlin could also order sabotage operations on cable networks connected to Ukraine’s allies in North America and Europe specifically to exacerbate the growing war fatigue caused by high inflation and gas prices.

Other than the Kerch Strait Cable, Rostelecom also owns the Georgia-Russia cable system in a joint venture with Georgian and Danish companies. Stretching across the Black Sea, the Caucasus Cable System, owned by Caucasus Online, connects Georgia and Bulgaria. In the west, Türk Telekom International operates the Black Sea Fiber Optic System (KAFOS), which has landing points in Turkey, Bulgaria, and Romania.

Yet a multinational security apparatus — whether through NATO or a Black Sea regional defense cooperative — is needed to help private companies successfully defend existing systems and launch future projects. The war in Ukraine has exposed NATO’s deficiencies in preventing and responding appropriately to potential Russian sabotage operations on critical infrastructure.

Measures taken by private companies to implement redundancies to limit the impact of individual disruptions will mitigate the risks of widespread internet blackouts. And if NATO states invested more in the defense of these networks, Russia would lose a potential point of leverage against the Alliance.

NATO defense ministers highlighted the importance of identifying the threats posed to submarine infrastructure, particularly by the Russian navy. As part of this effort to enhance security, NATO tasked Joint Force Command Norfolk (JFC-NF) to monitor and protect these networks in the Atlantic.

Introducing a similar mission concept to the Eastern Mediterranean and Black Sea regions could be a productive step in ensuring the security of NATO’s exposed southeastern flank. The next iteration of the Black Sea Maritime Forum, first convened on February 25 of last year, could provide the appropriate platform to advance this issue and discuss solutions among Black Sea states with NATO involvement.

Regionally, coordinating strategic interests among the Black Sea states, especially with NATO, has always been a challenge. Despite Romania’s vocal support for an increased NATO presence in the region, the lack of enthusiasm from Turkey and Bulgaria has hindered progress toward sufficient Black Sea defense.

Turkey’s hesitation may be because of its “middleman” approach to the competition between Russia and the United States. Even as Russian aggression continually destabilizes the Black Sea region, Turkish President Recep Tayyip Erdoğan remains unwilling to fully commit to the West’s punitive stance against Moscow.

Turkey’s expanded trade relations with Russia, despite increasing pressure from the US to abide by Western sanctions, and its foot dragging on ratifying Finland and Sweden’s accession to NATO, demonstrate the country’s insistence on prioritizing its own security concerns, even at the expense of hindering a united Euro-Atlantic front.

However, Turkey must not overlook the importance of securing the critical infrastructure networks in the Black Sea, including submarine communication cables, especially as one of them — KAFOS — has a landing point in Istanbul, near the Bosporus Strait. Given Ankara’s interest in minimizing the risk of escalation in the Russo-Ukrainian war, it should contribute to the broader Black Sea region’s underwater domain awareness as well as monitor key vulnerabilities that could be exploited or put at risk by a malign actor — whether Moscow or anybody else.

Short of a wider North Atlantic Alliance mission, Turkey should actively cooperate with other Black Sea states, including non-NATO member Georgia, in pursuing their own regional security framework that would include as its mission the protection of submarine cables in the Black Sea.

Biden hosts German Chancellor to solicit support in Ukraine war

US President Joe Biden on Friday hosted German Chancellor Olaf Scholz at the White House, where the two leaders tried to project a united front in support for Ukraine as it enters the second year of a war against invading Russian forces.

Scholz last visited the White House in February 2022, when Russia was amassing troops along the Ukrainian border. Friday’s visit came after a year of war and as both leaders have sought to assure the Ukrainians and other allies that their respective governments will back Ukraine for as long as it takes to end the conflict.

“I want to thank you, Olaf, for your strong and steady leadership. I mean that sincerely. It’s made a world of difference,” Biden said during an Oval Office meeting. “You stepped up to provide critical military support. And I would argue, beyond the military support, the moral support you’ve given Ukrainians has been profound.”

Scholz added that it was important for Germany and the United States to aid Ukraine and “that we give the message that we will continue to do so as long as it takes.”

That message echoed what Biden has said repeatedly during the past year, including during a trip to Kyiv last month marking the anniversary of Russia’s invasion.

The two leaders did not respond to questions from reporters in the Oval Office, and they were not scheduled to hold a joint press conference that has typically accompanied foreign leader visits to the White House.

But continued support for Ukraine was likely to be at the top of the agenda for Biden and Scholz. The US and Germany, along with other Group of Seven allies, have for the past year attempted to coordinate on imposing sanctions against Russia to squeeze the Kremlin’s war effort, as well as military and economic assistance for Ukraine.

Biden and Scholz were initially not on the same page earlier this year over whether to send tanks to Ukraine, with Germany reluctant to Leopard tanks unless the US agreed to send Abrams tanks. Both countries eventually came to an agreement to provide the armored vehicles to Ukraine.

As the war enters its second year, maintaining support will be a major test for both leaders, and the US has warned that China is considering providing support to Russia in its war effort, though it has not yet done so.

Polls have shown softening support among Americans for providing additional aid to Ukraine, and US officials have deferred to Ukrainians to map out what they would accept for terms of ending the war. 

Half of respondents in a late February poll from Fox News said America should continue to back Ukraine through the end of the war, while another 46% said there should be a limited timeframe on US support.

 

Pakistan Stock Exchange average daily trading volume increases 16%WoW

The benchmark index of Pakistan Stock Exchange closed the week on March 03, 2023 at 41,337 points, depicting an increase of 1.55% over the course of the week. Participation in the market improved, with daily volumes averaging 159.76 million shares during the week, as compared to 137.89 million shares in the prior week depicting a gain of 15.9%WoW.

The local currency depreciated heavily against the US$ which lead to a negative sentiment in the market midweek. However, a positive market reaction was seen where the State Bank of Pakistan (SBP) hiked the policy rate by 300bps to 20% to fulfill the prior condition of IMF for the long awaited staff level agreement to avert sovereign default and secure the US$1.2 billion disbursement.

Foreign exchange reserves held by SBP inched up by US$556 million to US$3.81 billion as on February 24, with the import cover still remaining below a month.

Other major news flows during the week included: 1) Moody's downgrades Pakistan's rating to Caa3; changes outlook to stable from negative, 2) February 2023 CPI jumps to 31.5%, highest rate in nearly 50 years, 3) US$700 million Chinese loan lands in SBP account, 4) 8MFY23 trade deficit narrows 33.18%YoY, 5) RKR2 billion shortfall in February 2023 tax collection and 6) Money supply reaches to PKR30.68 trillion in 7MFY23.

Top performing sectors were: Miscellaneous, Commercial banks, and Woolen, while the least favorite sectors were: Tobacco, Leather and Tanneries, and Property.

Stock-wise, top performers were: PSEL, UBL, BAFL, EPCL, and MEBL, while laggards were: PGLC, SML, PAKT, SRVI, and JVDC.

Flow wise, insurance companies were the major buyers with net buy of US$10.42 million, followed by companies with net buy of US$8.15 million, while foreign investors were major sellers during the week, with a net sell of US$9.48 million.

All eyes on the Staff Level Agreement, Pakistan is in a very critical situation where delays in the 9th Review can’t be tolerated. Any news flow regarding foreign inflows, whether from the IMF or other bi-lateral and multilateral sources, would support the market.

The market may remain jittery in the near future due to higher inflation expected to be driven by hikes in gas tariff and the GST implementation starting to materialize.

The PKR continues its slide against the Greenback and as the open market rate inches upwards there is no clarity as to its limit.

With this backdrop, we continue to advocate scrips that have dollar-denominated revenue streams to hedge against the currency risk, which include the Technology and E&P sectors.

 

EPA proposes sales of higher ethanol blend gasoline

The US Environmental Protection Agency on Wednesday proposed a rule that would allow sales of gasoline with a higher ethanol blend in certain US Midwest states - a win for corn growers but a potential logistical challenge for the oil industry.

The proposal comes in response to a request from the governors of corn-producing Midwestern states including Iowa, Nebraska and Illinois, that the agency lifts an effective ban on E15, or fuel containing 15% ethanol, to lower pump prices and help farmers.

The EPA's proposal would take effect in the summer of 2024, a year later than the governors had requested.

The EPA enforces summertime regulations preventing E15 sales because of concerns it contributes to smog in hot weather. Research has shown, however, that E15 may not increase smog more than E10, which is sold year-round and contains 10% ethanol.

Proponents of the EPA's proposal say that increased E15 supply would lower pump prices by expanding the volume of available fuel, and help farmers in the meantime.

However, critics of the idea - including those in the refining industry - have voiced concerns that a piecemeal approach to augmenting E15 sales could lead to distribution challenges.

Both the biofuel and oil industries have said they would prefer a nationwide policy allowing E15.

The EPA will hold a public hearing for the proposed rule in late March or early April 2023, it said.

The American Petroleum Institute, an oil group, said major changes to the fuel infrastructure system will be needed to accomplish the governors' request, because high ethanol fuel grades require different equipment.

The API expects an additional one or two years beyond 2024 will be needed to minimize impacts to consumers, said Will Hupman, API's vice president of downstream policy.

The oil refining industry has traditionally balked at efforts to expand the ethanol market because it competes with gasoline at the pump and can be costly to blend.

The American Fuel and Petrochemical Manufacturers, an oil trade group, said late on Tuesday that implementing a new fuel blend in select states in 2024 would create issues, including leaving the Midwest region with tighter fuel supplies during the peak summer driving season.

"Not every refinery, pipeline and terminal serving the Midwest has the ability to seamlessly produce, transport and store a new blend of gasoline, and it could take years to permit and complete infrastructure projects to resolve this," said Patrick Kelly, AFPM's senior director of fuels and vehicle policy.

The rule could cost the Midwest's fuel supply chain and consumers up to US$800 million per year, Kelly added.

The biofuel industry gave a mixed response to the announcement.

The Renewable Fuels Association said it was glad to see the EPA taking action, but disappointed that it was a year later than the governors had requested.

"By law, EPA should have finalized approval of the governors' petition more than seven months ago, which would have given the marketplace more than enough time to adjust and prepare for implementation this summer," said Geoff Cooper, the RFA's chief executive.

Members of the biofuel industry say E15 saves consumers money. Drivers saved an average of 16 cents per gallon this past summer because of E15, said Growth Energy Chief Executive Emily Skor.

US President Joe Biden lifted the ban last summer to try to lower historically-high gasoline prices.

Some in the oil industry are so opposed to a piecemeal approach to E15, that in November they supported for the first time a bill to expand nationwide sales of E15.

The legislation was introduced by Senator Deb Fischer from Nebraska and Senator Amy Klobuchar from Minnesota and supported by the American Petroleum Institute.

Both oil and biofuel groups this week reiterated that a nationwide, legislative fix would be the best solution.

"A legislative approach that addresses the needs of all stakeholders would provide a more durable and less disruptive solution than creating requirements for costly new fuel blends," AFPM's Kelly said.