East Central South Dakota | Gasoline consumption has dropped by 70 percent. You can't blend ethanol if you aren't selling gasoline.
1. ACE is irrelevant to the EtOH industry..
2. An almost completely monopolized industry is not a free market---not even close to free.
3. The thing that has most changed is the world consumer wants its Energy Source generated above ground not mined or pumped out of the ground. Repeat the reading of that sentence. We are mining and pumping carbon out of the ground that took millions of years to make and we are burning it and releasing it into the atmosphere in just decades. The consumer wants his energy generated above ground with wind, solar and ethanol.
4. The break even price for the U.S. shale industry lies in the $48 to $54 per barrel range. The industry is heavily indebted, and companies will not be able to service the debt with the lower world oil price. Shale oil is now a non-starter. Shale oil is probably not a good example for oil industry profitability today.
5. Carbon based fuels still need an oxygenated fuel additive to meet emissions standards and still lacks octane. Ethanol still provides both efficiently.
6. The ethanol industry is definitely seeing troubled times, but so is the oil industry. Gasoline consumption this week was down 70 percent.
7. Research is trying to find value in other products that can be produced out of Dry Milling plants that will add to a revenue stream outside of just ethanol---we are still a young industry.
Edited by white shadow 3/28/2020 22:35
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CEO of American Coalition for Ethanol says 2B gallons will be lost
