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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

US Ethanol Refining Capacity to Operate at Half-Capacity During 2020

05/17/2020

Based on projections by the Energy Information Administration (EIA) of the Department of Energy, ethanol consumption will decline to less than fifty percent of the previously estimated volume incorporated in the renewable fuel standard for 2020.  The Renewable Fuels Association recorded an average daily ethanol volume of 26 million gallons for the week ending May 8th although higher than during the previous five weeks.  The low demand for gasoline is based on reduced economic activity and home confinement during March and April when the nation attempted to “flatten the curve”. 

 

The EIA estimates ethanol consumption at 29 million gallons a day during April, May and June a third less than compared to an expected volume of approximately 40 million gallons.  Consumption is expected to rise to 37 million gallons a day during the fourth quarter with an average of 38.3 million gallons a day for 2021.  The projections assume resumption of economic activity during the second quarter.  The situation would however be exacerbated if a second wave of COVID-19 infection were to occur following resumption of even limited commercial activity. 

 

Irrespective of the national or regional incidents rates, it is clear, that many white-collar workers will probably not return to work on a regular basis but will be able to function from their homes thereby continuing to reduce fuel requirements. 


 
Copyright © 2020 Simon M. Shane