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.
Amid the jitters in the oil fields and the cheers at the gas pumps here in Canada over US$45-a-barrel crude, you might have missed a bit of news from the other side of the world. On Monday, China’s National Development and Reform Commission lowered the price of gasoline by 365 yuan (about $72 Canadian) per metric tonne.