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Senior Advisor

To heck with the strategic reserve, now's the time to be talking up (& blending up) ethanol.

To heck with the strategic reserve, now's the time to remind people why we have the RFS.  Ethanol is every bit as important as the strategic reserve.  Besides the strategic reserve is suppose to be kept for real emergencies and war fighting not baling  out misguided foreign policy.

 If trump really cared about farmers he'd be pushing higher ethanol blends instead of promising to open the strategic reserve to save the refiners butts.  It sure shows you where his heart is.

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Honored Advisor

Re: To heck with the strategic reserve, now's the time to be talking up (& blending up) ethanol

If those small 31 refineries had not been given waivers and were now in bankruptcy or shutdown.  Gas would be $4 and we`d be scrambling to source fuel on the world stage.  Then there`d be a recession and one guess who would get the blame?   Hint, his name starts with "".

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Senior Advisor

Re: So, by that way of thinking, it's better to bankrupt farmers than refiners?

Has anyone ever hear of a petroleum refinery going bankrupt? 

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Honored Advisor

Re: So, by that way of thinking, it's better to bankrupt farmers than refiners?

The last oil refinery was built in 1977.   Where as the last ethanol plants have been built in the last year, the Poet one in Indiana was slated to come on line about now but they put it on hold.  

There`s a Green Plains E-plant at Superior, Iowa and they made a big hoop-la about it shutting down...and it was I drove by many times and it was dead.   On way back from Spencer Fair, the lights were on, cars of workers parked there, smoke barreling out, DDGs piling up.  Nothing in the news about that, they were big on reporting it`s closure, but slow reporting that it`s up and going.   The one in Winnebago, Minnesota is shutdown, but they have a heck of a lot of debt.

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Senior Advisor

Re: So, by that way of thinking, it's better to bankrupt farmers than refiners?

I've mused over ways policy could be set to make ethanol production more elastic.

But of course "elastic" cuts both ways and nobody would ever be happy with anything but moar.

Since the environmental policy of limiting summer blending is now kaput, it would be easier.

Although such a policy would probably require a target price mechanism. What's the price that enough interests would be happy with ad infinitum?

 

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