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Author Topic: Valero pulls out of Mascoma's Michigan proposed plant project Back to Topics
gamechanger2011

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Wichita

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Message Posted: Aug 13, 2013 7:00:58 PM

"Mascoma Corp. says it is actively seeking project financing to build its two proposed cellulosic ethanol plants amidnews that Valero Energy Corp. is no longer involved in its U.S. project planned for Kinross, Mich."
Valero pulls out of Mascoma's Michigan proposed plant project


[Edited by: gamechanger2011 at 8/13/2013 7:02:15 PM EST]
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Chazzer
Champion Author Nevada

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Message Posted: Oct 18, 2013 2:21:05 PM

That's the thing to do!
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tropicalmn
Veteran Author Minnesota

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Message Posted: Sep 24, 2013 12:31:32 AM

Mean while the 10 ethanol plants Valero owns, including Fort Dodge, were in strong, profitable, competitive conditions, with a positive long-term outlook. With the supply of ethanol building, as gasoline demand falls, Day said there are other markets the company is looking for marketing the renewable fuel. "We may be able to export some ethanol and keep production numbers high," he said, "especially as corn prices have moderated. "That makes it attractive to sell ethanol overseas. Even beyond the Renewable Fuels Standard, if you keep plants operating at a fairly high utilization rate, making ethanol for sale overseas it's great for everybody and helps reduce the balance of trade in the U.S."

[Edited by: tropicalmn at 9/24/2013 12:36:49 AM EST]
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brerrabbitTX
Champion Author Houston

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Message Posted: Sep 13, 2013 3:08:59 PM

Valero isn't having problems making a profit. Valero reports 1Q profits of $654 million.

Really? Is this a case of not seeing the forest for the trees. Profit of $654 million on sales of $33.43 billion. If my math is right that is a profit margin of 1.96%. That stinks! I sure as heck would not want to invest my money there.

Earnings as a share of sales, or as a percentage of capital invested is what you look at. Raw numbers mean little. A big part of Valero's problem is they do not drill for oil therefore they have not experienced the upside of oil prices, and are only buyers of oil for their refineries which mean high prices hurt them as well. THey also sell a bunch of bulk fuel from their refineries that they do not collect RIN credits for and are forced to buy them on the open market. The are estimating spending $750 million on RIN credits this year which would effectively wipe out an entire quarter of profit that was only 1.96% of sales to begin with.
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skye1212
Champion Author Austin

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Message Posted: Sep 13, 2013 12:01:05 PM

Valero also wants to reduce ethanol requirements, saying its making fuel too expensive.
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SilverStreaker
Champion Author Twin Cities

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Message Posted: Sep 13, 2013 10:16:01 AM

Valero isn't having problems making a profit. Valero reports 1Q profits of $654 million
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darwinfinch
Veteran Author Gasbuddy

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Message Posted: Sep 13, 2013 9:04:39 AM

Why is Valero so reluctant to get involved in biofuels? Other refiners are, and they are profiting.
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dassfg
Champion Author Fort Worth

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Message Posted: Sep 13, 2013 8:32:25 AM

Let the market rule
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WhiskeyBurner
Veteran Author Illinois

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Message Posted: Sep 13, 2013 3:33:44 AM

Wonder what would happen if the oil and gas companies gave up their tax breaks.
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Shockjock1961
Champion Author Illinois

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Message Posted: Sep 12, 2013 10:41:11 PM

Valero Asks Obama Administration to Waive Ethanol Mandate

"Valero Energy Corp., the world’s largest independent refining company, called on the Obama administration to waive the country’s biofuel target immediately, saying the cost to reach it has skyrocketed."
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Kahouna
Champion Author Michigan

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Message Posted: Sep 5, 2013 2:19:13 PM

30% of our corn to supplement 3% of our oil. I'm not sold on corn for ethanol!
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Shockjock1961
Champion Author Illinois

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Message Posted: Aug 24, 2013 8:11:17 AM

Just proves the fact that without government handouts ethanol falls on it's face...
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tdioiler
Champion Author Detroit

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Message Posted: Aug 14, 2013 9:22:33 PM

Take away the tax breaks, and the business model goes into 'obama care' mode. They still need more tax dollar donations to make it work.
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