• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 4 days America should go after China but it should be done in a wise way.
  • 13 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 2 hours How Far Have We Really Gotten With Alternative Energy
  • 14 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 12 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population

Trump Set To Unveil Plan To Boost Biofuels

The Trump Administration is set to announce later on Friday a plan to boost ethanol and biodiesel demand and placate the farming lobby angered by the Administration’s waivers for dozens of oil refineries exempted from blending corn-based ethanol in fuels, Reuters reports, quoting four sources with knowledge of the matter.

Under the Renewable Fuel Standard (RFS), oil refiners are required to blend growing amounts of renewable fuels into gasoline and diesel. The Midwest farm belt benefits from the policy, but the oil refiners do not—they lose petroleum-based market share of fuels and meeting the blending requirements costs them hundreds of millions of dollars.

The U.S. biofuels policy has been pitting the oil refining industry against the Midwest farm lobby.

While U.S. President Donald Trump is a vocal supporter of the U.S. oil industry, he also supports the RFS, especially corn-based ethanol, which protects farming jobs in the politically important states with large Republican majorities in the Midwest.

President Trump angered earlier this year the powerful corn lobby in the Midwest, after the Environmental Protection Agency (EPA) waived obligations for 31 oil refineries to blend ethanol in the fuels they make.

Now the new plan for biofuels, the result of weeks of negotiations, could anger the oil industry, because none of the oil lobby’s wishes such as putting a ceiling on the biofuel blending credits is included in the new measures, according to the sources who spoke to Reuters.

The plan designed to boost the farming industry is said to be making up for the waivers to refiners by raising the ethanol blending requirements in the future and by expanding the market for high-ethanol blends such as E15, Reuters’ sources say.

The Trump Administration has been planning the ethanol-boosting policies for weeks, and President Trump has been said that he would soon unveil his plan, a kind of ‘apology package’ for the farmers after upending the ethanol market with the recent decision favoring the oil industry.  

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News