Refining's-clean new jingle

This paper reports that at a time when profit margins are slim and gasoline demand is down, the U.S. petroleum-refining industry is facing one of its greatest challenges; How to meet new federal and state laws for reformulated gasoline, oxygenated fuels, low-sulfur diesel and other measures to improve the environment. The American Petroleum Institute (API) estimates that industry will spend between $15 and $23 billion by the end of the decade to meet the U.S. Clean Air Act Amendments (CAAA) of 1990, and other legislation. ENSR Consulting and Engineering's capital-spending figure runs to between $70 and 100 billion this decade, including $24 billion to produce reformulated fuels and $10-12 billion to reduce refinery emissions. M.W. Kellogg Co. estimates that refiners may have to spend up to $30 billion this decade to meet the demand for reformulated gasoline. The estimates are wide-ranging because refiners are still studying their options and delaying final decisions as long as they can, to try to ensure they are the best and least-costly decisions. Oxygenated fuels will be required next winter, but federal regulations for reformulated gasoline won't go into effect until 1995, while California's tougher reformulated-fuels law will kick in the following year