The ethanol industry has been hurt severely in the past few years. Right now, COVID-19 is piling on top of the stress of trade barriers and the Environmental Protection Agencies (EPA) granting of small refinery exemptions (SREs). Speaking of the EPA and SREs, are you familiar with the classic children?s story, ?If You Give a Mouse a Cookie?? Well, the mice are back for a glass of milk.
The governors of Texas, Wyoming, Oklahoma, Utah, and Louisiana are asking for further exemptions from the blending rules under the Renewable Fuels Standard (RFS). They are citing economic hardship from the COVID-19 outbreak. Geoff Cooper is the President and CEO of the Renewable Fuels Association (RFA). He says that everybody is hurting. COVID-19 has compounded strain on the biofuels industry which was caused by the wholesale granting of illegal waivers.
Cooper says the ethanol and RFS requirements are fluid with oil and gas consumption. Just like gas prices.
Cooper says to blame the RFS is ?ludicrous.? He says ethanol isn?t responsible for their profit losses, it is the pandemic.
Also, the dumping of oil by Russia and Saudi Arabia into the world marketplace has caused furthering weakening in the market.
