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Governors' Biofuels Coalition
NEWS UPDATE March 20, 2020

Top Story

U.S. biofuel group says ethanol industry sharply cutting production

By Stephanie Kelly, Reuters  •    •  Posted March 20, 2020

Many U.S. ethanol plants have slashed production over the past week or idled entirely as the coronavirus outbreak cut into fuel consumption and cratered margins to refine the corn-based fuel, the head of a biofuel trade group said on Thursday. Renewable Fuels Association Chief Executive Geoff Cooper said on a conference call he expects ethanol production to fall further, and called on the U.S. Environmental Protection Agency to ease strain on the industry by ceasing to grant small refineries waivers from the nation’s biofuels mandates.
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Energy Markets Erode Ethanol Margins

By  Todd Neeley, DTN Staff Reporter  •    •  Posted March 20, 2020

Ethanol plants have been responding to an eroding gasoline market amid an economic slowdown from coronavirus concerns and an oil war between Saudi Arabia and Russia. Ethanol companies have slashed production and are asking the federal government for help as they fight to keep their operations viable. “It is impacting the entire industry,” Randy Doyal, CEO of Al-Corn Clean Fuel in Claremont, Minnesota, said during a news conference on Thursday.
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Markets

Overloaded Storage Facilities Likely to Mean Even Lower Oil Prices

By Benoit Faucon and Summer Said, Wall Street Journal  •    •  Posted March 19, 2020

Storage facilities around the world are brimming with cheap oil and could run out of space within months, traders and analysts say, a predicament that could drive down crude prices to unprecedented single-digit dollar amounts. As the global response to the coronavirus pandemic saps oil consumption with factory closures and travel restrictions, the Saudi-Russian price war has caused crude prices to plummet by half to around $28 a barrel this month. [ read more … ]

Feature: US ethanol market wonders what’s next after US price crash

By Wes Smith, S&P Global Platts  •    •  Posted March 19, 2020

Just where is the bottom? That’s what the ethanol industry is wondering, after seeing the price for ethanol at Kinder Morgan’s Chicago Argo terminal, the dominant US hub for ethanol trading, tumble by nearly 18% to historic lows in March. On Monday, S&P Global Platts assessed Chicago Argo ethanol at $1.04/gal, the lowest assessment since Platts began the assessment in 2006. Argo ethanol had sunk 14 cents in one day, leaving a sea of red. It was the latest blow to an industry already reeling from collapsing prices.
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Crude oil’s price collapse hits ethanol market hard

By Alan Guebert, Farm and Dairy  •    •  Posted March 19, 2020

Then March appears with its light, color and hope and February’s dreariness is soon forgotten. Light, color and hope are needed this March as political leaders, markets and the world economy tumble into a virus-choked mud hole of confusion, finger-pointing and inaction. Worse, this mess will likely get messier. [ read more … ]

North Dakota weighs plan to keep some Bakken crude off market

By Brian Scheid, S&P Global Platts  •    •  Posted March 19, 2020

Faced with declining demand and potentially months of oil prices below most Bakken breakeven prices, the North Dakota Industrial Commission next week will consider new rules aimed at preventing operators from either bringing more unwanted crude onto the market or abandoning wells completely. In January, the number of inactive wells in North Dakota climbed to 2,607, a new record for the state and an increase of 687 wells, or nearly 36%, from December. In a year, North Dakota’s inactive well count has climbed by 1,090 wells, an increase of nearly 72%. [ read more … ]

SREs

Renewable Fuels Coalition Launches Campaign Calling for EPA Not to Appeal 10th Circuit Decision

By Ken Colombini, Renewable Fuels Association  •    •  Posted March 19, 2020

With the need for a decision only days away, the coalition that successfully won a unanimous court decision against the U.S. Environmental Protection Agency continued its call for the agency to not appeal the decision by launching a new social media campaign aimed at encouraging policymakers and the EPA to do the right thing. Click here for a video created by the four associations to drive this point home in Washington. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.