Few Ethanol Options Reuters reports that President Trump met today with USDA Secretary Sonny Purdue and EPA Administrator Andrew Wheeler to receive options on boosting the disappearance of ethanol. Plants are shuttering, and the EPA’s granting of hardship waivers from the ethanol blending requirement is being blamed. Rumored options include reversing the waivers or transferring the obligations to larger entities. Neither idea is a particularly good plan. Optimally, more of the fuel would be exported, particularly given its attractive price relative to gasoline – a 15 percent discount FOB/Gulf. The export market must grow faster, or else capacity will have to be realigned with domestic demand. Tsk-Tsk, Tusk The E...
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.