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Energy Recap: Talking Biofuel Policy

User 2031821
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Summary

  • Every Friday, Seeking Alpha provides a roundup of insightful opinion and analysis articles in the energy sector.
  • In this edition, we highlight articles on American shale, Halcon Resources, and oil prices, as well as ask for your take on the energy sector.
  • If you'd like to contribute to the energy conversation on Seeking Alpha, you can leave a comment below or submit your own article.

Welcome to the latest edition of the Energy Recap. This week, we wanted to talk a bit about the recent meetings between the White House and representatives of the oil and corn industries regarding biofuel policy. The talks were called "amid rising concern in the White House over the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel." The first meeting, held on Feb. 27, didn't reach any meaningful conclusions; the second meeting was held on March 2.

As per Reuters, a "source who attended Thursday's meeting at the White House said Trump told the gathering of lawmakers and corporate executives that he supports a proposal from the refining industry to cap the price of biofuels blending credits that refiners must acquire to comply with the RFS. ... Trump also expressed support for expanding sales of high-ethanol gasoline - a tweak long-sought by ethanol producers." The biofuel industry's reaction was varied, "generally supporting the idea of year-round sales of high-ethanol blend gasoline but worried by the proposed price cap for credits, which some in the industry worry would curtail investment in new blending facilities."

No real agreement was made this week on how to change U.S. policies regarding biofuels, so it seems as if more discussion will have to take place going forward. What's your take on where the U.S. biofuel policies might be headed? Do you agree with the idea of making changes to the RFS to help refiners who say they are struggling under the program? Please leave us your thoughts in the comments section below.

Energy Articles of Note

"American Shale And The New World Energy Order: Chasing The Elephant" By Russell Katz

"Halcon Resources: The Case For A Strong Buy" By Laurentian Research

"Hartstreet: Oil Prices

This article was written by

3.07K Followers
Michelle joined Seeking Alpha as a Senior Editor in 2012, and was the Director of Contributor Onboarding from 2021-23.

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