E85 loyalty

Ethanol Producer Magazine
By Holly Jessen April 11, 2012

Economist finds buyers willing to pay more

Research showing consumers are willing to pay a premium for ethanol was published in the March issue of the Journal of Environmental Economics and Management. Soren Anderson, a Michigan State University economist, calculated that when ethanol increased 10 cents per gallon above the price of gasoline, there was only a 12 to 16 percent decrease in demand.

Frankly, Anderson was surprised at what he found. “I was expecting to see a sharp reduction in sales of E85 the moment that the price rose above the price of gasoline on an energy-adjusted basis,” he tells EPM. “But this doesn’t seem to be happening. Instead, it appears that many E85 buyers are willing to pay a premium for the fuel, and some fraction of these buyers continue to buy the fuel, even when its price rises above that of gasoline.”

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Ethanol keeping gas prices below $4/gallon: RFA

Biofuels Digest

Jim Lane May 2, 2011

In Washington, the Renewable Fuels Association reports: “Based upon current market conditions and federal renewable fuels policy, 10 percent ethanol blends (E10) are keeping gasoline prices $0.12 per gallon cheaper than they otherwise would be. As AAA reports, the current average price for gasoline is $3.88 per gallon nationwide. Without ethanol, gas prices would average $4.00 per gallon nationally. These savings do not take into account the downward pressure ethanol puts on the oil market by virtue of being 10 percent of the nation’s gasoline supply. Previous estimates of that impact show ethanol is keeping gasoline prices up to $0.60 lower per gallon than they otherwise would be.”

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Ethanol costs rise: What's in the price pipeline?

Chicago Tribune
By Bob Caylor, McClatchy/Tribune news
5:38 p.m. CST, December 30, 2010

Ethanol, the alternative fuel made from corn, may be a victim of its own success. Or rather, motorists who buy ethanol may be the victims.

For the first time since the push to use more ethanol in American vehicles began five or six years ago, ethanol costs more than gasoline. E-85, a blend of 85 percent ethanol and 15 percent gasoline, has recently been priced higher than regular gasoline at some area stations.

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Ethanol Producer Margins are Waning

AgWeb.com
3/25/2010

The chart of the week estimated ethanol producer spot profitability. Why is this important to the commodity markets? Well, the ethanol industry and protein/dairy farming industries all share a major input cost- corn. And it’s been the rise in feed costs (including corn) which have challenged protein and dairy farmer profitability during the last two years or so. As of late, ethanol producer margins have been waning despite the fact that crude oil prices have been on the rise and corn prices have mostly declined. This is due to declining ethanol prices which we believe holds a clue. You see typically crude oil, gasoline and ethanol prices will all trend together. Currently in the US, the EPA states that gasoline can be blended with ethanol up to 10% and still be utilized in a customary vehicle. There are states that have further restrictions from there. Because of these limitations, it’s quite possible that we are currently hitting or getting very close to the blending wall for ethanol with gasoline. In other words, we may be using all the ethanol we can right now. And if this is the case, corn use growth for ethanol could be stunted unless demand for ethanol expands by either exports or the EPA ruling to increase the limitation on the blend percentage this coming summer.

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POET chief:$50 oil will not ruin US ethanol makers

Reuters.com
Wed Dec 3, 2008 4:39pm EST

WASHINGTON, Dec 3 (Reuters) - U.S. ethanol makers can make money producing the alternative motor fuel even with crude oil prices as low as $50 a barrel, the head of the largest U.S. ethanol producer said on Wednesday.

Jeff Broin, chief executive of privately held POET, told a conference that his company was looking at potential purchases of ethanol plants, but declined afterward to say if bankrupt VeraSun Energy Corp was among them.

Broin urged a higher blend rate for ethanol into gasoline, now set at 10 percent, during a speech to a conference sponsored by Farm Journal magazine.

The blend rate should be boosted to 15 percent or 20 percent ethanol to satisfy federal requirements for use of ethanol in the next year or two, Broin said.

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BIO: Oil Prices, Not Biofuels, Effect Food and Crop Prices Most in 2008

GrainNet.com
Date Posted: November 19, 2008

Washington—Consumers should be aware that the price of oil has had the greatest impact on crop and food prices during 2008 and that biofuels can help end U.S. dependence on petroleum while creating new green jobs and real economic growth.

Jim Greenwood, president and CEO of the Biotechnology Industry Organization (BIO), today released the following statement:

“American consumers should not be fooled by ongoing attempts to misplace blame for this year’s rise in food prices on biofuels.

"The evidence before consumers is clear: crop prices have fallen dramatically in the past few months as oil and gas prices have declined.

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Unjust Fingerpointing

Good Fuels (Renewable Fuels Association)
by Tom Waterman on July 9, 2008

If EPA Grants Waivers, Repercussions Would be Swift and Painful

As the Environmental Protection Agency reviews congressional requests to relax rules mandating the use of ethanol, something the politicians haven’t thought about is what will happen if the rules are relaxed.

What mainstream media doesn’t get, from the Los Angeles Times to TIME magazine, is that it will guarantee that $5.00 gasoline occurs within a month of an announcement to grant Governor Perry’s request that the Federal ethanol mandate be cut in half. Crude oil prices would race toward $175 per barrel as the world’s largest petroleum consumer ramps up its appetite for oil.

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Pennsylvania Governor Rendell Signs Biofuels Development and Incentives Acts to Strengthen National Security, Spur Economic Development

Wall Street Journal: MarketWatch
Last update: 12:26 p.m. EDT July 10, 2008

PLYMOUTH MEETING, Pa., July 10, 2008 /PRNewswire via COMTEX/ -- PLYMOUTH MEETING, Pa., July 10 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell signed legislation today that will help spur the development of homegrown biofuels in Pennsylvania and reduce the state's dependence on foreign fuels by establishing new requirements that every gallon of gasoline and diesel fuel contain a percentage of ethanol and biodiesel.

"Pennsylvanians are struggling with higher fuels costs," said Governor Rendell, who signed House Bill 1202 and Special Session Senate Bill 22 into law at the National Armory in Montgomery County. "Record-high fuel prices are straining family budgets and pinching the bottom lines of our businesses. We need to reduce our dependence on foreign oil and keep our energy dollars in Pennsylvania, to invest in our economy and create jobs."

The biofuel percentage requirements established under the new law will go into effect once in-state production reaches certain levels. The requirements -- which include what is believed to be the nation's first state-specific cellulosic ethanol mandate -- will also spur new economic development in renewable biofuels by directing that more of the money spent each year by Pennsylvanians on imported fuels stay in the state.

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High gas prices hit consumers worldwide

Associated Press
By ANGELA CHARLTON – May 31, 2008

PARIS (AP) — Feeling woozy about the fortune you've just pumped into your gas tank? Drivers around the world share the sensation.

Consumers, gas retailers and governments are wrestling with a new energy order, where rising oil prices play a larger role than ever in the daily lives of increasingly mobile people. But as the cost of crude mounts, the effect on the price at the pump varies startlingly — from Venezuela, where gas is cheaper than water, to Turkey, where a full tank can cost more than a domestic plane ticket.

Taxes and subsidies are the main reasons for the differences, along with lesser factors such as limited oil refining capacity and hard-to-reach geography that push up prices.

"I don't know why it is but... it hurts," says Marie Penucci, a violinist filling up her Volkswagen at an Esso station on the bypass that rings Paris.

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