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By Robert Rapier on Aug 16, 2012 with 5 responses

How Ethanol and the Chevron Refinery Fire Impact Gas Prices — R-Squared Energy TV Ep. 27

In this week’s episode of R-Squared Energy TV, I answer two gasoline-related questions. One is on how ethanol is impacting current gasoline prices, and whether that increases the chances of a waiver for this year’s Renewable Fuel Standard. The other is on the impact of the Chevron refinery fire in California.

Readers who have specific questions can send them to ask [at] consumerenergyreport [dot] com or leave the question after this post (at the original source). Consider subscribing to our YouTube channel where you’ll be able to view past and future videos.

Link to Original Article: How Ethanol and the Chevron Refinery Fire Impact Gas Prices — R-Squared Energy TV Ep. 27

By Robert Rapier

  1. By Jim Takchess on August 17, 2012 at 6:23 pm

    http://www.redherring.com/finance/lanzatech-lands-55-8-m-series-c-to-make-ethanol-from-smoke-stack-emissions/

    Robert, 

    Off Topic: 

    Have you heard about what the energy inputs/expected costs are @ in the Lanzatech technology? 

    It’s an interesting story: I wonder if it will prove practical. 

    Jim 

     

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  2. By Ed Reid on August 17, 2012 at 7:11 pm

    I realize that this could be considered heretical, but CA could waive its boutique fuel standard for six months for sufficient non-spec gasoline to replace the output of the refinery which is down. But then, I guess penance is good for the soul, as long as it doesn’t affect Governor Moonbeam’s limo. 

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  3. By Russ Finley on August 18, 2012 at 2:46 pm

    There are a lot of other corn consumers out there trying to stay solvent in the face of this drought and the market distorting effects of mandated corn ethanol consumption.

    the USDA’s world agricultural outlook board estimated that global corn consumption will be off by 38.9 million tons, with the U.S. problems responsible for three-fourths of the shortage.

    Source: http://online.wsj.com/article/SB10000872396390443404004577581140907497810.html

     

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  4. By JonSCKs on August 18, 2012 at 7:32 pm

    Robert, I appreciate your site and comments on ethanol.  As you note the rising price of ethanol may have an impact upon RBOB gasoline prices.  Some Govenors have asked the EPA to waive the RFS2 Mandate to free up more corn for livestock uses. 

    However, since ethanol is still mostly below the price of RBOB.. on Futures prices by about $.40 per gallon.. would this action not FURTHER increase Gasoline prices if granted?

    Is it possible that we will see a return of increased imports of Brazilian Sugar cane produced Ethanol to supplement our domestic supply until we can raise a larger corn crop next year?

    Furthermore, Canada appears to be ontrack to harvest a bumper wheat crop for the first year after the ending of the Canadian Wheat Board Marketing monopoly.  Farmers in Canada will be free to market their crop to the highest bidders.. which could be livestock producers on this side of the border.

    Maybe the markets should be left alone to solve this..??

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    • By Robert Rapier on August 19, 2012 at 5:16 pm

      However, since ethanol is still mostly below the price of RBOB.. on Futures prices by about $.40 per gallon.. would this action not FURTHER increase Gasoline prices if granted?

      Hard to say. On an energy equivalent basis, though, RBOB at $0.40 more per gallon is cheaper per BTU.

      Is it possible that we will see a return of increased imports of Brazilian Sugar cane produced Ethanol to supplement our domestic supply until we can raise a larger corn crop next year?

      We are seeing that anyway because sugarcane ethanol is treated by the rules as an advanced biofuel.

      RR

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