U.S. ethanol production is plunging, and producers are demanding a fix. Some sources say that this week was the lowest ethanol output and highest stocks on record going back to 2010. Ethanol advocate and powerful Senator Chuck Grassley (R-Iowa) is suggesting USDA/CCC funds could be used to stockpile ethanol, noting that the government is currently buying crude oil to store in the Strategic Petroleum Reserve (SPR), easing a glut on the market caused by lower U.S. driving demand and a global oversupply caused by a disagreement between major producers Saudi Arabia and Russia over cuts to oil output. However, there are several issues related to the proposal. For one, ethanol is an additive and without it, the nation’s motor vehicles woul...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.