East Central South Dakota | ethanol is mandated simply because big oil doesn't have ethanol production and all big oils capital is invested in the vertically owned model of oil carbon from the well clear to the pump. Big Oil makes a margin on every phase of the process not just refining gasoline and this includes other distillates that come from the distillation tower. They can't make the margins all they way through the vertically integrated model if they don't sell gas. Ethanol/ gas spread is 33 cents discount to ethanol on a gallon basis, btu spread would be less, however big oil margins through the vertically integrated process are way bigger than the 33 cent price advantage ethanol currently has----but they only make those margins if gasoline (not ethanol) is sold at the pump. |
Why do we need the rfs?
