Energy Bill May Adversely Affect Refiners: Report

Law360, New York (January 7, 2008, 12:00 AM EST) -- The 2007 U.S. energy bill, which increased the country's renewable fuels mandate, may negatively affect refiners by lowering demand for gasoline, according to a report released Friday by Fitch Ratings.

The report, titled “2007 Energy Bill: Slower Downstream Growth Ahead,” examined the potential negative credit impacts of the law.

It found that the act would decrease barriers to entry through ethanol plant expansions and perhaps spread infrastructure costs onto the refining industry.

“It's a low-growth industry,” said Mark Sadeghian, the director of energy for Fitch Ratings,...
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