Biden’s climate goals will boost ethanol for now
US President Joe Biden
Jinjoo Lee
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In the tug of war for former President Donald Trump’s favors, oil refiners won some surprising victories over ethanol producers. Their fortunes are about to flip under President Joe Biden’s climate-driven administration.
The fate of U.S. oil refiners and ethanol are inextricably linked through the so-called Renewable Fuel Standard, which sets annual quotas for the quantity of ethanol and biodiesel that must be blended into transportation fuels. The burden of meeting the blending requirements falls on those that refine or import oil. Those unable to meet any given year’s quota must fulfill it by buying Renewable Identification Numbers (RINs) in the open market from those who have blended gallons to spare.
by Jinjoo Lee (Wall Street Journal) In the tug of war for former President Donald Trump’s favors, oil refiners won some surprising victories over ethanol producers. Their fortunes are about to flip under President Joe Biden’s climate-driven administration.
The fate of U.S. oil refiners and ethanol are inextricably linked through the so-called Renewable Fuel Standard, which sets annual quotas for the quantity of ethanol and biodiesel that must be blended into transportation fuels. The burden of meeting the blending requirements falls on those that refine or import oil. Those unable to meet any given year’s quota must fulfill it by buying Renewable Identification Numbers (RINs) in the open market from those who have blended gallons to spare.
US oil refiners set for worst earnings quarter
A general view of the Marathon petroleum refinery in Carson, California.Reuters/file Reuters, New York Reuters, New York
US refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products.
Seven US independent refiners are projected to post an average earnings-per-share loss of $1.51, down from a loss of $1.06 in the third quarter of 2020, according to IBES data from Refinitiv.
Both Credit Suisse and Tudor Pickering Holt cut lowered the price estimates of every US independent refiner for the fourth quarter.
U.S. oil refiners set for worst earnings quarter of the pandemic
U.S. refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products.
Seven U.S. independent refiners are projected to post an average earnings-per-share loss of $1.51, down from a loss of $1.06 in the third quarter of 2020, according to IBES data from Refinitiv.
Both Credit Suisse and Tudor Pickering Holt cut lowered the price estimates of every U.S. independent refiner for the fourth quarter.
US oil refiners set for worst earnings quarter of the pandemic Toggle share menu
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US oil refiners set for worst earnings quarter of the pandemic U.S. refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products.
FILE PHOTO: General view of the Marathon petroleum refinery in Carson, California, U.S., December 5, 2019. REUTERS/Mike Blake
25 Jan 2021 02:05PM (Updated:
25 Jan 2021 02:15PM) Share this content
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NEW YORK: U.S. refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products.