Exclusive: U.S. Oil Industry Seeks Unusual Alliance with Farm Belt to Fight Biden Electric Vehicle Agenda

by Jarrett Renshaw and Stephanie Kelly (Reuters/Yahoo! Finance) The U.S. oil industry is seeking to forge an alliance with the nation's corn growers and biofuel producers to lobby against the Biden administration's push for electric vehicles, but is so far meeting a cool reception, according to multiple sources familiar with the discussions.

The effort marks an unusual attempt by the petroleum industry to cozy up to its long-time rivals, reflecting the scale of its concern over President Joe Biden's sweeping measures to combat climate change and tamp down fossil fuels.

The effort also reflects the rapidly shifting political landscape in Washington: the oil industry's once-mighty influence has waned since Biden replaced Donald Trump as president, but the farm belt remains a vital and powerful political constituency.

The American Fuel and Petrochemical Manufacturers oil refining trade group confirmed it has been contacting state and national representatives of the corn and biofuel industries in recent weeks to seek support for a policy that would reduce the carbon-intensity of transport fuels and block efforts to provide federal subsidies for electric vehicles.

That proposal would be an alternative to Biden's stated goal of electrifying the nation's vehicle fleet and would ensure a continuing market for liquid fuels like gasoline and corn-based ethanol.

Sources said the biofuel and corn industry is reluctant to join with the oil industry on this issue not just because of its longstanding rivalry with refiners, but also because it does not want to publicly oppose the energy policies of the new president.

The oil industry believes carbon emissions from fuel can be reduced by requiring increased octane content, which makes gasoline burn cleaner. Ethanol is a popular octane booster. READ MORE

Excerpt from Capital Press: One expert in the corn and ethanol sector who did not wish to be identified told the Capital Press that although it's understandable why fuel companies are concerned about Biden's push for electric, the panic is probably unwarranted.

"Let's not overreact. Political promises aren't always acted on or even doable," said the source.

Biden's executive order directing the federal government to replace its fleet with electric vehicles is one example where reality may fall short of promises.

Biden ordered the government to buy electric vehicles made in America with union labor, but such a fleet may not exist. Tesla Inc., the leading U.S. electric vehicle manufacturer, isn't unionized. And General Motors Co. gets about 75% of its components outside the U.S., missing the 50% American-made threshold.

According to Richard Gupton, senior vice president of public policy and counsel at the Agricultural Retailers Association, the U.S. would also require reliable supply chains for the rare minerals needed to create electric vehicles.

So, for now, although some corn and biofuel producers are worried about Biden's plans, industry leaders say it's a bit premature to panic. READ MORE

Excerpt from E&E News: London-based BP PLC is headlining a new program with Uber Technologies Inc., the ride-hailing company, to explore the placement of rapid EV charging hubs in Houston. Details remain elusive, including how many chargers may get built and at what cost. But the scope and timeline could firm up later this year, and the plan may include charging hubs in parking lots and other locations.

The electric proposal for Houston reflects a growing evolution at major oil and gas companies, including BP's work with Uber on EV charging in the United Kingdom. Royal Dutch Shell PLC, another European oil company, announced the purchase in 2019 of Greenlots, which provides software and services related to EV charging (Energywire, Feb. 1, 2019). And while U.S. oil majors may be more reserved in talking about a clean energy pivot, Chevron Technology Ventures has invested in ChargePoint Inc., a major EV charging infrastructure company (Energywire, Aug. 6, 2020).

The Houston program, which was announced this week, also shines a light on the opportunities — and challenges — of ramping up electric vehicles in a large city, a dynamic that is likely to play out elsewhere.

The plan is the latest move for BP as it expands beyond traditional oil and gas in the era of decarbonization. READ MORE