East Central South Dakota | good thoughts as usual, plus graphs---thank you and nice work as usual.
The most important point, in my mind, is the premium of the price of RINS for the refineries is totally self inflicted. The refineries themselves are driving up the price of RINS simply because they refuse to give ethanol, market access and/or displace their own products. Instead of buying RINS at a premium price----all the refineries would have to do is buy more ethanol and splash a higher blend to generate the RINS to offset their gasoline production. Spend your money on inflated RINS price or spend it on infrastructure to blend ethanol---big oil with a retail arm has spent the money on blending infrastructure, but still even they won't blend beyond the e-10 mandate. The independents have dug their heels in and refuse to blend to offset production. Knowing the self infliction and blending refusal changed my opinion on the issue to keeping the Point of Obligation with the refineries----the refineries have more options then they are trying to sell the public... |