[Biofuel] Cheap oil makes it tough for ethanol to pay bills | The Salt Lake Tribune
http://www.sltrib.com/home/2859042-155/cheap-oil-makes-it-tough-for Cheap oil makes it tough for ethanol to pay bills By Mario Parker Bloomberg News First Published Aug 20 2015 09:36AM • Last Updated Aug 20 2015 09:36 am Cheap crude oil may make it hard for ethanol companies to pay their bills on time. The lowest oil prices in six years are hitting biofuel producers two ways: They're making ethanol less attractive as a blend for gasoline, and emboldening the arguments of petroleum backers who say the U.S. law mandating consumption of the fuel alternative is obsolete, Standard Poor's Ratings Services Inc. said in a report Wednesday. The most noteworthy trend in the energy industry during the past year has been the precipitous decline in commodity prices, and chief among these has been plummeting oil prices, Michael Ferguson, a credit analyst at SP, wrote. The lower oil prices may present a difficult rationale for blending ethanol. Crude oil has fallen 57 percent in the past year to $40.80 a barrel on the New York Mercantile Exchange, the lowest since March 2009. Gasoline has plunged 42 percent and ethanol has dropped 31 percent. Regulatory support has also waned. In May, the Environmental Protection Agency proposed reducing the amount of ethanol required to be mixed with gasoline from statutory levels set in 2007, citing changing driving habits and fuel use since then. That's not reason enough to abandon the policy, according to Growth Energy, a Washington-based trade group. Cheap gas and cheap oil is never a certainty, and often it is the exception, Tom Buis, chief executive officer of the lobby, said in an emailed statement. The Renewable Fuels Association, also a Washington-based trade group, said the SP report is really out of step with the realities of the market place today. Low-priced crude oil lowers gasoline costs and makes ethanol less attractive for blending beyond government mandates. An additive, ethanol is used to boost gasoline supply and lower prices. Consumers are saying, 'I've already got cheap gas, why do I need this ethanol?' Ferguson, the report's author, said in a telephone interview Wednesday. Poet in Sioux Falls, S.D., is the largest ethanol producer, followed by Archer-Daniels-Midland Co. in Chicago; Valero Energy Corp. in San Antonio; and Green Plains Renewable Energy Inc. in Omaha. In the United States, ethanol is made mostly from corn. Companies risk getting pinched between cheap oil, which caps how much they can charge for ethanol, and corn that's subject to weather-related price spikes, according to the credit agency. Ample supply and higher input costs threaten to pressure production margins for the rest of the year, Bloomberg Intelligence analyst Tobias Nystedt and James Evans said in an Aug. 7 report. That, combined with cheap oil and policy changes, brews uncertainty, anathema to credit analysts, SP said. ___ Sustainablelorgbiofuel mailing list Sustainablelorgbiofuel@lists.sustainablelists.org http://lists.eruditium.org/cgi-bin/mailman/listinfo/sustainablelorgbiofuel
Re: [Biofuel] Cheap oil
I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
RE: [Biofuel] Cheap oil
You know it's happening. And the commericial I saw the other night goes a long way with that. Not sure who's commercial, but oil executives in the board room, one introduces them to bio oil. They balk and say their in the oil business, he says their in the energy business. So you know they are thinking about it and have a Plan B up their sleeve. They just want to eek out the last drops of dino dollars while they can. -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] Behalf Of Ross Cannon Sent: September 30, 2004 9:51 AM To: [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED] Subject: [Biofuel] Cheap oil Global Capitalism and the end of Cheap Oil I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. We won't have to wait 10 years. One was an article by T. Boone Pickens, the Texas oil mogol. The other was an article in the Kipplinger Newsletter, a newsletter printed monthly for the business world. The article in Kipplinger says that oil is skyrocketing for a number of reasons, including the political destabilization of oil producing regions throughout the world. (Remember Bush's argument that our invasion of Iraq would help secure the Iraqi oil fields? Well, the terrorists are now targeting the oil industry as a strategy to cripple our economy -- starting with Iraq.) Another BIG factor is the booming economic growth now taking place in India and China. Especially the booming manufacturing capability of China. Not only is oil affected (it's being bought up as fast as it is being pumped -- OPEC seems unable to make up the difference anymore), but valuable other irreplaceable resources are being sucked up by these nations -- for example, American scrap iron. Add to that the fact that the international transport infrastructure (trains, planes, ships, etc) is now being taxed to the hilt due to a soaring amount of imports and exports (also reported by Kissinger) and put it together, we see a significant impact on our economy. Pickens view is that unless things change, all nations -- attempting to copy the American economic model of the past -- will be competing with each other for fewer and fewer oil reserves. He sees $50 to $100 per barrel oil becoming the norm, for example. I see the same thing for items like bauxite, iron ore, and such -- essential raw materials required in the manufacturing process. Thus simple living will become an economic necessity as things balance out throughout the world, At the same time developing nations become more like the U.S., we no doubt will become more like them -- MY words. But this is not such a bad thing. As I have said before here, that hardly means that we'll be living in grass huts. More like it, we will be living much like we did in the Forties, Fifties or maybe the Sixties, my guess. Ross Cannon 0oo00o0o0o0o0o0o0o0o0o0o0o0oo0o00o0o0o0o0o0 The Equinox is here again, marking a brief time of balance on this plane of existence. We feel the passage of time with the colors of fall, spring for our friends to the south. We feel an intuitive need to pause and to reflect on where we are in our life's journey. RossCannon Get your name as your email address. Includes spam protection, 1GB storage, no ads and more Only $1.99/ month - visit http://www.mysite.com/name today! ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
Re: [Biofuel] Cheap oil
Walt, The oil crisis in the 70's was triggered by the Israeli-Arab war and an attempt by the Oil producing countries to effect the world in this. Hakan At 07:53 PM 9/30/2004, you wrote: At 08:51 AM 9/30/04 -0500, Ross wrote: I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
Re: [Biofuel] Cheap oil
- Original Message - From: Walt Patrick [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Thursday, September 30, 2004 1:53 PM Subject: Re: [Biofuel] Cheap oil At 08:51 AM 9/30/04 -0500, Ross wrote: I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. Very good quibble :) Luc The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
Re: [Biofuel] Cheap oil
The oil crisis in the 70's was triggered by the Israeli-Arab war and an attempt by the Oil producing countries to effect the world in this. Hakan See: The Seven Sisters -- The Great Oil Companies and the World They Made http://journeytoforever.org/biofuel_library.html#7sisters The Seven Sisters -- The Great Oil Companies and the World They Made, by Anthony Sampson, 1975 (out of print). The Seven Sisters (from a phrase first popularised by Italian oil tycoon Enrico Mattei): Exxon (Esso), Shell, BP, Gulf, Texaco, Mobil, Socal (Chevron) -- plus an eighth, the Compagnie Francaise Des Ptroles (CFP-Total). We scanned chapters 8-14 of the book and posted them under the subtitle OPEC, Big Oil and you at the Biofuel mailing list, where they raised much interest. I was so interested in the story, I went out and ordered myself a copy, wrote one list member. This is great reading, and gives us a small glimpse into the control that big oil has over us. Thanks. Seven chapters full-text online. See also: Who gets what from imported oil? Data from OPEC (Acrobat file, 36kb): http://www.opec.org/NewsInfo/WhoGetsWhat/2001.pdf Best wishes Keith At 07:53 PM 9/30/2004, you wrote: At 08:51 AM 9/30/04 -0500, Ross wrote: I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
Re: [Biofuel] Cheap oil
- Original Message - From: Keith Addison [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Thursday, September 30, 2004 11:58 PM Subject: Re: [Biofuel] Cheap oil Walt, The oil crisis in the 70's was triggered by the Israeli-Arab war and an attempt by the Oil producing countries to effect the world in this. Hakan See: The Seven Sisters -- The Great Oil Companies and the World They Made http://journeytoforever.org/biofuel_library.html#7sisters The Seven Sisters -- The Great Oil Companies and the World They Made, by Anthony Sampson, 1975 (out of print). The Seven Sisters (from a phrase first popularised by Italian oil tycoon Enrico Mattei): Exxon (Esso), Shell, BP, Gulf, Texaco, Mobil, Socal (Chevron) -- plus an eighth, the Compagnie Francaise Des Ptroles (CFP-Total). We scanned chapters 8-14 of the book and posted them under the subtitle OPEC, Big Oil and you at the Biofuel mailing list, where they raised much interest. I was so interested in the story, I went out and ordered myself a copy, wrote one list member. This is great reading, and gives us a small glimpse into the control that big oil has over us. Thanks. Seven chapters full-text online. See also: Who gets what from imported oil? Data from OPEC (Acrobat file, 36kb): http://www.opec.org/NewsInfo/WhoGetsWhat/2001.pdf Best wishes Keith An equally interesting and revealing read is The Rockerfeller File http://www.mega.nu:8080/ampp/gary_allen_rocker/index.html#metatop Showing that due to anti-trust laws levelled at him, Heir Rocky was forced to break up Standard Oil into the conglomerates we have with us today, while, of course, retaining much of their control. Luc At 07:53 PM 9/30/2004, you wrote: At 08:51 AM 9/30/04 -0500, Ross wrote: I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
Re: [Biofuel] Cheap oil
hump in the process going from a net exporter to a net importer of crude oil. Hakan Falk wrote: Walt, The oil crisis in the 70's was triggered by the Israeli-Arab war and an attempt by the Oil producing countries to effect the world in this. Hakan At 07:53 PM 9/30/2004, you wrote: At 08:51 AM 9/30/04 -0500, Ross wrote: I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. Good article with some interesting points, but I feel the need to quibble a bit. The problem is that oil _is_ cheap, even at $50 a barrel because while a barrel of oil is real, the dollar is not. The oil crisis of the '70s was triggered by Nixon's decision to remove the dollar's gold backing and OPEC's rational response to his decision. Now, we're facing a similar situation. The world is being flooded with dollar denominated debt, a tidal wave which is going to affect the dollar denominated value of all commodities. People talk about fifty dollar a barrel oil as if fifty dollars means something. It doesn't. Each dollar is just a drop in a vast sea of unsupported, unredeemable debt, and as foreign investors start to catch on, the dollar is going to continue to fall in value. In short, it isn't so much a matter of the cost of oil going up, but rather the value of the dollar going down. Walt ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/ -- -- Bob Allen,http://ozarker.org/bob -- - The modern conservative is engaged in one of Man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness JKG --- [This E-mail scanned for viruses by Declude Virus] ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
[Biofuel] Cheap oil
Global Capitalism and the end of Cheap Oil I just encountered two articles at my library that strengthens my belief that we are beginning to see the end of cheap oil NOW from how we've always known it. We won't have to wait 10 years. One was an article by T. Boone Pickens, the Texas oil mogol. The other was an article in the Kipplinger Newsletter, a newsletter printed monthly for the business world. The article in Kipplinger says that oil is skyrocketing for a number of reasons, including the political destabilization of oil producing regions throughout the world. (Remember Bush's argument that our invasion of Iraq would help secure the Iraqi oil fields? Well, the terrorists are now targeting the oil industry as a strategy to cripple our economy -- starting with Iraq.) Another BIG factor is the booming economic growth now taking place in India and China. Especially the booming manufacturing capability of China. Not only is oil affected (it's being bought up as fast as it is being pumped -- OPEC seems unable to make up the difference anymore), but valuable other irreplaceable resources are being sucked up by these nations -- for example, American scrap iron. Add to that the fact that the international transport infrastructure (trains, planes, ships, etc) is now being taxed to the hilt due to a soaring amount of imports and exports (also reported by Kissinger) and put it together, we see a significant impact on our economy. Pickens view is that unless things change, all nations -- attempting to copy the American economic model of the past -- will be competing with each other for fewer and fewer oil reserves. He sees $50 to $100 per barrel oil becoming the norm, for example. I see the same thing for items like bauxite, iron ore, and such -- essential raw materials required in the manufacturing process. Thus simple living will become an economic necessity as things balance out throughout the world, At the same time developing nations become more like the U.S., we no doubt will become more like them -- MY words. But this is not such a bad thing. As I have said before here, that hardly means that we'll be living in grass huts. More like it, we will be living much like we did in the Forties, Fifties or maybe the Sixties, my guess. Ross Cannon 0oo00o0o0o0o0o0o0o0o0o0o0o0oo0o00o0o0o0o0o0 The Equinox is here again, marking a brief time of balance on this plane of existence. We feel the passage of time with the colors of fall, spring for our friends to the south. We feel an intuitive need to pause and to reflect on where we are in our life's journey. RossCannon Get your name as your email address. Includes spam protection, 1GB storage, no ads and more Only $1.99/ month - visit http://www.mysite.com/name today! ___ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
