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.
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.