The U.S. Energy Information Administration (EIA) recently released its Annual Energy Outlook (AEO) for 2023 – that report is the Department of Energy’s equivalent to USDA’s long term baseline projection. The USDA’s report forecasts out to 2032, while the AEO forecasts to 2050. The AEO predicts that exports will become the driver of petroleum and liquid fuels. Domestic consumption is forecast not to increase through 2040 (even across high and low-price cases). Liquid fuel use is not projected to return to pre-COVID levels. While miles traveled increase, so does fuel efficiency of the vehicle fleet, offsetting aggregate fuel use. Additionally, the percentage of electric vehicles in the fleet increases. Finally, l...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.