The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.

By Lauren M. Graham, Ph.D.

On July 11, 2017, the Energy Information Administration (EIA) issued its June Short-Term Energy Outlook (STEO).  EIA considered EPA’s recent rulemakings on the 2017 RFS volume requirements and proposed 2018 RFS volume requirements when developing its STEO for 2017 and 2018
 
Biodiesel production averaged 101,000 barrels per day (b/d) in 2016, and, according to EIA, is expected to increase to an average of 105,000 b/d in 2017 and to 109,000 b/d in 2018.  Biomass-based diesel imports are expected to fall from 54,000 b/d in 2016 to 53,000 b/d in 2017 but rise to 59,000 b/d in 2018.
 
Ethanol production averaged 1.0 million b/d in 2016 and is expected to average slightly above 1.0 million b/d in 2017, which would be a record, but will likely decline slightly in 2018.  Ethanol consumption averaged about 940,000 b/d in 2016 and is forecast to increase slightly in 2017 and 2018.  As a result, the ethanol share of the total gasoline pool will increase to nearly 10.1% in both 2017 and 2018.  Only marginal increases in higher-level ethanol blends are assumed to occur during the STEO forecast period.


 

By Lauren M. Graham, Ph.D.

On April 28, 2017, the U.S. Energy Information Administration (EIA) released its monthly biodiesel production report for February 2017.  According to the report, U.S. biodiesel production increased by one million gallons between January and February of this year but production is 11 million gallons less than February 2016.  Production came from 95 biodiesel plants with capacity of 2.3 billion gallons per year.  The report also states that 37 million gallons of 100 percent biodiesel (B100) were sold, and an additional 46 million gallons of B100 were sold in biodiesel blends.  Of the 736 million pounds of feedstocks used to produce biodiesel in February 2017, soybean oil remained the largest biodiesel feedstock with 369 million pounds consumed in February.


 

On January 10, 2017, the U.S. Energy Information Administration (EIA) released the Short-Term Energy Outlook (STEO) report, which includes forecasts for 2018.  The report outlines expectations for regular gasoline to average a retail price of $2.38 for 2017, with prices for the first quarter of 2017 to average $2.31.  The finalized RFS volumes that were announced on November 23, 2016, resulted in EIA forecasting that ethanol consumption will average about 940,000 barrels per day (b/d) in 2017 and 950,000 b/d in 2018.  Based on this level of consumption, the ethanol share of total gasoline is expected to average about ten percent in 2017 and 2018.  Ethanol production is forecast to average about 1.0 million b/d in 2017 and 2018.