The writing appears to be on the wall for the US corn-based ethanol industry.
After recording a compound annual growth rate of more than 21% in the past decade, production of the so-called first-generation biofuel has peaked and is expected to fall in the coming years.
In a report titled 1st Generation Ethanol Under Pressure, Credit Suisse Analyst Mary Curtis says the US industry faces a number of formidable challenges.
By Keith Bradsher HONG KONG: As China's stock market tumbled over the past month, some wealthy apartment owners began trying to sell. Shopping malls became quieter. And customers at automobile dealerships across the country asked to defer delivery and payment for previously ordered cars. While share prices have rebounded modestly in recent days, many business owners in China remain nervous, as they start to notice a perceptible economic chill.
I pulled into the filling station somewhat reluctantly. It was packed with a parade of cars, SUVs and pickup trucks, each jockeying for their turn to nourish their internal combustion engines with a tank of gasoline. I don’t like waiting. But I did, and after the ordeal I went into the station to buy a cup of coffee.
“What’s going on out there,” I asked the teller, “what’s with all the cars?”
“Don’t know sir,” said the teller, prompting me for my debit card. “Lots of people; I guess they like to drive.”
OTTAWA — The federal government isn’t fretting, just yet, over the drain on Canada’s finances caused by a seemingly endless weakening in oil prices, a situation aggravated by OPEC’s decision Thursday not to cut its production levels.
But there will be some obvious benefits to four-year-low oil prices — cheaper gasoline at the pumps, for one, and a possible knock-on buying effect for some consumer-dependent sectors of the economy.
“What is saved at the pumps will be spent at the malls,” said Avery Shenfeld, chief economist at CIBC World Markets.