World Perspectives
biofuel

Ethanol Sobriety Check

Politics and not economics drove the White House announcement today to approve year-round E15 fuel sales under an emergency waiver of the Clean Air Act’s requirements. Ethanol makes sense as an octane booster but less so as a gasoline substitute. Blending at the E15 level is already allowed in winter months and yet its use remains very low. The EIA has no measurement of E15 (or E85) use, but their best guess is 200 million gallons of E15, or 0.148 percent of all gasoline sold. Meanwhile, EIA says that “Almost all [95%] U.S. gasoline is blended with 10 percent ethanol.”  Corn only gained about 10 cents/bushel today despite a policy announcement that theoretically could have sent it into the stratosphere. Boosting etha...

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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.

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