Environmental Echo

by Don Corrigan

Fuel prices at Missouri and Illinois gas pumps have skyrocketed due to the conflict and turmoil in the Middle East, which affects global crude oil costs. Some legislators seek to soften the blow of high prices with an ethanol blend fuel solution.

Illinois drivers face some of the highest costs in the Midwest with gasoline averaging more than $4.20 – $4.30 per gallon. Missouri prices, though lower, also have seen significant upward trends.

The Land of Lincoln has experienced severe surges, with averages around $4.30 per gallon. The per gallon cost in Metro East area exceeds $4, while prices at some Chicago locations are approaching $5 per gallon. Costs for diesel fuel can be as high as $6.50 – $7.

Missouri gas prices, while historically cheaper than neighboring states, have risen to over $3 per gallon in most areas, with St. Louis leading the state in higher average costs of $3.85 to $4.

Experts say the situation is volatile, and steep prices will persist depending on geopolitical developments. In an effort to ease the pain for drivers, legislators and governors are urging action by the Environmental Protection Agency (EPA).

EPA Administrator Lee Zeldin said he will allow gas stations to sell a blended fuel containing 15% ethanol into the summer season as part of an effort to lower gas prices.

The blend is normally prohibited in many Midwest states over the summer months to reduce smog. The blend known as E15 contributes to foul air that in recent years has been aggravated by wildfire smoke from western states and from Canadian fires.

The move by EPA, which ethanol producers are applauding, could prevent more spikes in prices at the pump during the war with Iran, which has thrown oil markets in disarray worldwide.

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Members of MoDNR and Guidehouse met in Jefferson City this week to kick off development of the new Comprehensive State Energy Plan.

This week, the Missouri Department of Natural Resources embarked on an intensive six-month project to develop Missouri’s next State Energy Plan.

Guidehouse, the contractor for the new plan,  will work with the department’s State Energy Program to conduct economic and power sector modeling, and demand forecasting. The team will also develop policy recommendations.

“Missouri’s energy landscape has changed dramatically over the past 10 years, and state policymakers sit at a crossroads as to how they can shape Missouri’s energy resources to benefit Missourians for decades to come,” said Kurt Schaefer, director of the Missouri Department of Natural Resources.

Missouri’s current electricity generation portfolio is a diverse mix of fossil fuels, nuclear and renewable energy sources, with a recent significant shift to natural gas. The new plan will address Missouri’s drift away from net electricity exporting to becoming increasingly reliant on imported electricity. In 2025, Missouri relied on generation from other states for over 15 percent of its electricity needs.

Furthermore, massive growth in energy demand driven by data centers and manufacturing onshoring poses a new challenge, but a potentially unmissable opportunity for local Missouri economies.

“The ambitious new plan will go above and beyond previous plans,” said Schaefer. “It will forecast future demand and model multiple tailor-made scenarios for the state to evaluate the costs and benefits of meeting Missouri’s energy needs. This includes investments in specific energy technologies and correcting Missouri’s reliance on electricity imports.”

The department’s State Energy Program has conducted various forms of statewide energy planning and analysis since the 1990s to recommend plans for Missouri’s energy future to policymakers. The last Comprehensive State Energy Plan was published in 2015.

Learn more about MoDNR’s vision of the energy future at Division of Energy | Missouri Department of Natural Resources.

(Information from MO DNR press release.)