It is widely acknowledged that the U.S. ethanol industry has been negatively impacted by the COVID pandemic. The plight of ethanol producers has prompted calls for financial relief from the Federal government (Neeley, 2020a). The latest aid package for the economy passed by the U.S. Senate, the Heals Act, provides $20 billion in additional support […]
Reuters writer Stephanie Kelly reported this week that, “The U.S. Department of Energy has recommended that some of the oil refiners that applied for retroactive exemptions from the nation’s biofuel blending law be granted partial relief, two sources familiar with the matter said on Tuesday. “The move could help bring those refining companies into compliance with a court ruling earlier this […]
Stronger export numbers and lower acreage boosted corn prices since the end of June. Concerns about demand weakness in ethanol production emerged recently. A recovery in economic activity helped ethanol plants ramp up production as gasoline demand increased. A resurgence in virus incidences threatens ethanol production over the short run and injects uncertainty into long-run […]
Reuters writer Stephanie Kelly reported on Thursday that, “The U.S. Environmental Protection Agency has received 52 new petitions for retroactive biofuel blending waivers that, if granted, would help bring oil refiners into compliance with a court ruling this year, EPA data showed on Thursday. “The new pending applications for blending exemptions are for compliance years 2011 through 2018. […]
According to EIA data analyzed by the Renewable Fuels Association for the week ending May 22, ethanol production shifted 9.2% higher, or 61,000 barrels per day (b/d), to 724,000 b/d-equivalent to 30.41 million gallons daily and the largest volume since March. However, production remains tempered due to COVID-19 disruptions, coming in 31.5% below the same […]
Bloomberg writer Isis Almeida reported last week that, “There’s light at the end of the tunnel for the battered American ethanol market, according to producer Green Plains Inc. For now, coronavirus stay-at-home measures are keeping cars off the road, slashing demand for biofuels. But as economies reopen and people settle into post-pandemic life, they will likely avoid […]
U.S. Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture intends to make available up to $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels. “America’s energy independence is critical to our economic security, and President Trump fully recognizes the importance of our ethanol and […]
Recent ethanol plant closures and production slowdowns open up the possibility of demand destruction in corn used for ethanol beyond current projections. Some of the latest predictions saw very dire consequences with upwards of one billion gallons of lost ethanol production in 2020. The worst-case scenarios, like most dismal predictions for the economy, depend on […]
The restrictions put in place to “flatten the curve” in the fight against the coronavirus pandemic have had enormous and historically unprecedented impacts on U.S. gasoline consumption. The latest weekly data from the EIA indicates that gasoline use is now off by about 46 percent from the level prevailing in early March. A parallel decline in domestic […]
Extraordinary restrictions have been put in place in an attempt to slow the spread of the coronavirus in the U.S. and many other nations. The restrictions range from shelter-in-place orders to milder social distancing guidelines. The result is a contraction in economic activity unlike anything witnessed since the Great Depression. For example, the U.S. Department […]