Agribusiness rent seekers whine about reduced demand for ethanol

Fuel Fix:
The flood of ethanol waivers being handed out to small oil refineries by the Trump administration is winning no fans in the ethanol sector, who argue they're killing demand for the corn-based biofuel.

But the refining sector shot back this week, arguing the market is holding steady even as dozens of refineries have been exempted from requirements that they blend ethanol or buy expensive renewable fuel credits. They cited federal data showing that over the first four months of the year conventional ethanol blending was up 0.3 percent from last year.

"There has been no loss of any ethanol blending due to low (renewable fuel credits) or small refinery waivers," Frank Maisano, a spokesman for the energy lobbying firm Bracewell said in an email late Thursday.

That stands in sharp contrast to comments made by Agriculture Secretary Sonny Perdue, who at an event in Nebraska Thursday said the waivers were causing "demand destruction" for ethanol.
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If there is a lack of demand it is because ethanol is not a good substitute for fossil fuels.  It damages small engines leading to costly repairs.  If it were a good product it would not need any mandates that refiners purchase it and blend it with gasoline.   The US should do away with teh ethanol mandate and let the market determine how much if any is used.

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