• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 20 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 10 mins Venezuela set to raise gasoline prices to international levels.
  • 2 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 8 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 20 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 8 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 7 hours Saudi Fund Wants to Take Tesla Private?
  • 7 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 17 hours Starvation, horror in Venezuela
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 22 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Is Mexico Set To Boost Oil Output?

Is Mexico Set To Boost Oil Output?

Mexico’s president-elect is determined to…

Brazilian Government to Reduce Ethanol Content of Gasoline

Brazilian Mines and Energy Minister Edison Lobao stated that the government will reduce the admixture of alcohol with gasoline provided to service stations from 25 to 20 beginning 1 October.
 
Brazil uses sugarcane to produce ethanol as an additive to gasoline. While Brazil is currently the world’s leading exporter of ethanol, the U.S. Energy Information Administration recently wrote in its weekly petroleum report, "For the remainder of 2011, it is likely that the United States will surpass Brazil as the world's largest ethanol exporter due to recent supply shortages and resulting high sugar prices in Brazil."

High sugar prices are making U.S. corn-based ethanol more competitive and allowing U.S. ethanol producers to enter markets that previously exclusively imported Brazilian ethanol.
 
The government’s decision is the result of a disappointing cane crop and the incentive of higher global prices to turn more of the harvested sugarcane into sugar rather than fuel.

Lobao said, "We realized that next year's harvest will not be much better than the current one.  So we need to act early, considering both the present and the future on a precautionary basis," O Estado de Sao Paulo newspaper reported.

Further complicating the picture, indigenous Brazilian demand for ethanol has outpaced production as its growing middle class buys more flex fuel cars.

By. Charles Kennedy, Deputy Editor OilPrice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News