Not Logged In Log In   Sign Up   Points Leaders
Follow Us    12:18 AM

Message Forum - Read Message

Category: All Things Ethanol > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: EIA August STEO predicts production rebound in 2014 Back to Topics
gamechanger2011

Champion Author
Wichita

Posts:1,894
Points:72,615
Joined:Jun 2011
Message Posted: Aug 8, 2013 5:43:52 PM


"The U.S. Energy Information Administration has published the August issue of its Short-Term Energy Outlook report, forecasting that U.S. ethanol production will average 920,000 barrels per day in 2014. The EPA attributes the expected increase to increasing renewable fuel standard (RFS) targets and strong demand for renewable identification numbers (RINs). Production averaged 900,000 barrels per day during the first half of 2012 and 820,000 barrels per day from July 2012 through March 2013."EIA August STEO predicts production rebound in 2014
REPLIES (newest first) Post a Reply
Profile Pic
SilverStreaker
Champion Author Twin Cities

Posts:14,131
Points:2,795,350
Joined:Mar 2006
Message Posted: Aug 9, 2013 9:49:43 PM

Increased ethanol production and "The STEO report also products that Brent crude oil spot prices will average $104 per barrel during the second half of 2013, down from $108 per barrel during the first half of the year. In 2014, the price is expected to drop to $100 per barrel."
More proof that ethanol is helping lower gasoline prices.
Profile Pic
Shockjock1961
Champion Author Illinois

Posts:23,743
Points:2,784,990
Joined:Apr 2006
Message Posted: Aug 9, 2013 8:19:37 PM

Sounds like a case of reverse discrimination to me...
Profile Pic
Hannie59
All-Star Author Appleton

Posts:964
Points:24,300
Joined:Apr 2010
Message Posted: Aug 9, 2013 1:26:14 PM

The benefit that RINS are bringing to the mobile energy market are far beyond pricing. Although based on pricing, they are like a handicap in golf or bowling. Except that the very future of this entire nation is at stake. We cannot afford the current situation where the oil industry has more power over your lives than any other entity in the world.
Profile Pic
brerrabbitTX
Champion Author Houston

Posts:1,404
Points:24,925
Joined:Mar 2011
Message Posted: Aug 9, 2013 1:08:17 PM

"Sounds like the RFS is rewarding consumers and industry for creating and using renewable fuels, which is what most people want. Isn't that what it was designed to do? I don't see the problem. "

Yes that's what it is doing. No problem, except the way they are doing it is by creating a cost (RIN's crdits) and forcing the cost onto one side of the market (gas). Yes you can say oil has had subsidies and still receives some, but at the same time you want to say as many have on this board that ethanol no longer receives any subsidies. I am at least honest in my postings and freely admit that oil gets subsidies while everyone else brags that ethanol gets none. Well this may not be a subsidy in it's truest definition but lets all admit it certainly helps someone's bottom line.
Profile Pic
darwinfinch
Veteran Author Gasbuddy

Posts:457
Points:6,860
Joined:May 2013
Message Posted: Aug 9, 2013 9:01:47 AM

"the EPA and the RFS are definitely giving ethanol an economic advantage"

"Production is up because the government is giving ethanol a price advantage"

Sounds like the RFS is rewarding consumers and industry for creating and using renewable fuels, which is what most people want. Isn't that what it was designed to do? I don't see the problem.
Profile Pic
brerrabbitTX
Champion Author Houston

Posts:1,404
Points:24,925
Joined:Mar 2011
Message Posted: Aug 8, 2013 10:12:18 PM

I really don't mean to be the downer here but the article from Ethanol Producer Magazine says exactly what I have posted. Demand is up for ethanol because the value of the RIN credits are up significantly giving ethanol blended fuels a distinct price advantage in the market. The reason the values are up is because the RFS is requiring more ethanol usage. Call it what you want and you will say it is not a subsidy but the EPA and the RFS are definitely giving ethanol an economic advantage.

So as E-85 enjoys a wider roll out fully understand that the full value of the current RIN credit should be put into the deal. If not the blender is just stuffing a lot of money into his pocket. Also remember that the oil companies are either having to give up the value of the credit in their pricing, or paying on the open market to acquire the credit.

Production is up because the government is giving ethanol a price advantage. That's what the article says.
Post a reply Back to Topics