MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for November 7th

Updated at 5:00 PM ET 

HEADLINES:

— SIGMA: California Regulations Create E15 Adoption Hurdles

— EPA Grants 14 Waivers to Biofuel Blending Requirements

— Baker Hughes: North America Rig Count Up 6 Last week

— SIGMA: E15 Growth Surges as Grants Boost New Retail Sites

— EIA to Delay Weekly Oil Inventory Reports Until Nov. 13

— SIGMA: Refinery Closures to Cut U.S. 2026 Oil Output by 3%

— University of Michigan: Consumer Sentiment Hits 3-Year Low

— Venture Global Lands First Long-Term U.S.-Greece LNG Deal

NEWS:

SIGMA: California Regulations Create E15 Adoption Hurdles

California continues to face unique challenges that slow adoption of E15, even as the state leads the nation in renewable fuel sales, panelists said at the SIGMA 2025 Annual Conference. While Texas has emerged as the largest gasoline market in the U.S., surpassing California since the COVID-19 pandemic, California’s strict regulations make expanding E15 availability more complicated.

Unlike 49 states that have eliminated Stage 2 vapor recovery requirements, California maintains enhanced rules for vapor recovery systems. “The lack of UL-listed Phase 2 vapor recovery equipment for E15 creates a technical barrier for stations,” said Jeff Dzierzanowski, Manager of New Business Development at Source North America Corporation. “Stations have to navigate additional costs and approvals, which slows adoption compared to other states.”

Despite these hurdles, California remains a leader in renewable fuel through E85 sales. The state sold 116 million gallons of E85 last year, topping the nation, and continues to benefit from the largest share of Low Carbon Fuel Standard tax credits. Andrew Falco, Director of Market Development at Growth Energy, noted that “California’s success with E85 shows the market’s willingness to embrace higher ethanol blends when infrastructure and incentives align.”

Lance Klatt, Executive Director of the Minnesota Service Station & Convenience Store Association, emphasized the need for continued collaboration. “Industry groups, policymakers, and station owners need to work together to overcome regulatory hurdles while educating consumers on ethanol benefits,” Klatt said. Moderator Kristy Moore of KMoore Consulting guided the discussion, highlighting the role of coordinated efforts in addressing both technical and regulatory challenges.

Panelists agreed that overcoming California’s unique regulatory landscape could serve as a model for other states, supporting growth in E15 and higher ethanol blends nationwide while advancing renewable fuel goals.

EPA Grants 14 Waivers to Biofuel Blending Requirements

he Environmental Protection Agency announced Friday (11/7) it has granted 14 waivers in all, comprising full and partial exemptions, to 16 petitions received from small U.S. refineries seeking to be excluded from federal biofuel blending standards.

The EPA said in a statement that it granted 100% exemption to two petitions and 50% exemption to 12 other filings.

The balance two requests were denied, the agency said.

The 16 petitions were filed under the Small Refinery Exemption (SRE) covering the Renewable Fuel Standard (RFS) compliance – a standard established between 2021 and 2024.

The waivers granted by the EPA effectively reduce the affected refineries’ required volume obligations for blending renewable fuels.

The decision provides relief for refiners but dampens market demand for ethanol, the core component of E15 fuel.

The EPA action comes as the ethanol industry faces growing headwinds. 

The American Petroleum Institute withdrew last month its long-standing support for year-round E15 sales.

The API pivot “dismantled the long-standing alliance” with renewable fuel advocates, the Society of Independent Gasoline Marketers of America (SIGMA) said at its annual conference this week.

SIGMA’s Government Relations Team and Legislative Committee saw the API moveas effectively ending any remaining legislative pathway for the E15.

Baker Hughes: North America Rig Count Up 6 Last week

North American drilling activity rose this week, with a net gain of six rigs across the U.S. and Canada to 739, according to Baker Hughes data released Friday (11/7).

Total rigs operating in the United States fell by two to 548, while staying 37 below from the same week last year.

In the U.S., oil-directed rigs were unchanged at 414, while gas rigs rose by three to 128 week-over-week. Miscellaneous rigs fell by one to six.

On the North American front, land-based drilling gained two rigs to 527. Offshore activity and inland waters were both unchanged, at 19 and two, respectively. The Gulf of Mexico rig count rose by one to 12.

Canada’s total rig count rose by four to 191, with oil-directed rigs up two at 129. Gas rigs also climbed by two to 6w. Total rigs for Canada were 16 below last year’s level.

SIGMA: E15 Growth Surges as Grants Boost New Retail Sites

E15 sales are expanding across the U.S., driven by increased consumer access and funding for new retail infrastructure. Industry leaders discussed the progress and challenges of year-round E15 adoption at the SIGMA 2025 Annual Conference. Currently, 23 states offer E15 as a direct replacement for E10, while 34 states provide some level of consumer access, showing a steady push to make the higher-octane fuel more widely available.

Government grants have played a key role in helping retailers overcome the cost of installing E15 dispensers. Jeff Dzierzanowski, Manager of New Business Development at Source North America Corporation, highlighted programs such as the Higher Blends Infrastructure Incentive Program and funding through the Inflation Reduction Act, noting they have been instrumental in supporting new installations. “These funding programs make it possible for stations to adopt E15 without bearing the full financial burden themselves,” he explained.

Andrew Falco, Director of Market Development at Growth Energy, said adoption trends indicate strong consumer demand is following the increase in infrastructure. He expects continued growth as more stations add E15.

Lance Klatt, Executive Director of the Minnesota Service Station & Convenience Store Association, emphasized the importance of consumer education. Outreach campaigns, he noted, help drivers understand the benefits and performance of E15, which remains unfamiliar to many.

Moderator Kristy Moore of KMoore Consulting guided the panel, noting that the industry’s collaborative approach is helping to address year-round challenges for E15, from technical infrastructure issues to consumer awareness.

As of 2025, there are 4,500 E15 retail sites nationwide, with 800 added this year alone. Panelists said ongoing investment and education could expand E15 usage even further, benefiting retailers and consumers while supporting renewable fuel goals nationwide.

EIA to Delay Weekly Oil Inventory Reports Until Nov. 13

The Energy Information Administration said it will delay by a day publication of its oil inventory reports for next week due to the Veterans Day federal holiday.

The Weekly Petroleum Status will be published at 12 p.m. ET and 2 p.m. ET on Thursday, November 13, due to the holiday on November 11.

The Heating Oil and Propane Update and the Winter Propane Market Update will both be published at 2 pm on November 13.

SIGMA: Refinery Closures to Cut U.S. 2026 Oil Output by 3%

Refinery closures are likely to reduce U.S. petroleum production capacity by 3% in 2026, with California seeing the major shutdowns, Megan Boutwell, president of Stillwaters Associates, said at the SIGMA 2025 Annual Conference.

The closures will come as U.S. refining capacity has struggled to fully recover from the pandemic, remaining relatively stable at 18.4 million bpd as of the start of this year, Boutwell said at the conference this week.

Most of the shutdowns are in California, where strict environmental policies — including the state’s Low Carbon Fuel Standard and cap-and-trade program — have accelerated refinery conversions and closures, according to Boutwell. Phillips 66’s Los Angeles refinery will halt operations this year, while Valero plans to shutter its Benicia refinery by April 2026.

Combined with earlier conversions of Phillips 66’s Rodeo and Marathon’s Martinez refineries to renewable fuel production, the state will lose nearly 17.8 million bbl of annual refining capacity, equivalent to nearly 3% of total U.S. output, Boutwell said.

To compensate for lost supply, the region will likely increase imports from Asian refiners in South Korea and India, while Washington state’s Ferndale refinery has announced plans to produce California’s special CARB gasoline blend.

In order to offset the regional shortfall, refiners and pipeline operators have announced new open seasons. Kinder Morgan recently completed an open season for its East Line from El Paso to Tucson, adding 2,500 bpd of diesel capacity. Magellan Midstream Partners launched a Sunbelt Connector open season in September to move refined products from Houston to Phoenix.

Additionally, the Western Gateway Pipeline — a joint venture between Kinder Morgan and Phillips 66 — would bring refined fuel into California for the first time via a new and reversed 1,300-mile system linking Texas to Phoenix and Colton, California.

University of Michigan: Consumer Sentiment Hits 3-Year Low

U.S. consumer sentiment worsened considerably in November, with the Index of Consumer Sentiment dropping to 50.3 from 53.6 in October, marking the lowest reading since July 2022, according to preliminary data from the University of Michigan’s Surveys of Consumers released this morning. Year-over-year, the index was down 21.5 points, or 29.9%.

The Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, slipped 1.3 points to 49.0, a 2.6% decrease from October and down 36.3% compared to the same month last year. 

The Current Economic Conditions Index, measuring sentiment about personal finances and buying conditions, fell to 52.3 in November, 6.3 points, or 10.8%, below the level reported in October and down 18.2% year-over-year. 

“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy. This month’s decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation.” said Surveys of Consumers Director Joanne Hsu.

Hsu highlighted one key exception, noting that “consumers with the largest tercile of stock holdings posted a notable 11% increase in sentiment, supported by continued strength in stock markets.”

Venture Global Lands First Long-Term U.S.-Greece LNG Deal

Venture Global announced Friday (11/7) the first long-term LNG agreement between the U.S. and Greece, as it agreed to provide Athens-based Atlantic See a minimum of 0.5 million tonnes per year of U.S. liquefied natural gas over 20 years.

Shipments will begin in 2030, with supply sourced from Venture Global’s operations in the U.S. Gulf Coast, which include over 100 MTPA of capacity across production, construction, and developments in Louisiana, the company said in a statement.

The agreement follows Venture Global’s previously announced investment in regasification capacity at the Alexandroupolis LNG import terminal in Greece, which currently accounts for approximately 25% of the terminal’s total capacity.