A new report from the Consumer Federation of America (CFA) blames higher gas prices on major U.S. oil refiners creating tighter markets.
The report looks at why gas prices continue to rise despite declining gasoline consumption, high inventory levels and increased production of ethanol.
“For half a decade the major oil companies have exercised their market power,” said Dr. Mark Cooper, research director of CFA and author of the report. “In response to record high prices, consumers are cutting their consumption and lower priced alternatives, like ethanol are expanding supplies. But these market responses are being counteracted by high crude prices driven up by speculators and reduced oil company refinery runs.”
The report notes that ethanol is one of the key factors affecting the gasoline market.
Today, two-thirds of all gasoline sold in the U.S. is blended with ethanol. However, the use of ethanol still falls far short of the maximum allowed for conventional engines. If all gasoline sold were blended to 10 percent ethanol, ethanol use would be 40 percent higher than it is today. Such an increase would equal over 200,000 barrels per day and production capacity is projected to increase by almost that much in 2008,14 which reinforces the fact that the primary structural factor that may alter the domestic situation in the near term is the supply of alternative fuels, rather than recession driven changes in demand.
Cooper calls on policy makers “to shine a spotlight on the industry so it does not cut back on refinery runs to tighten the market, and they need to ensure that the 2007 “Energy Independence and Security Act” is implemented vigorously since it emphasized the two key long-term elements that can help consumers escape from the grip of both the domestic refining oligopoly and the crude oil cartel – expansion of alternative fuels and reduction of demand through increased fuel economy.”
Orion plans to convert the facility into a fully integrated renewable fuels campus in three phases over 3 years. The first phase will convert the corn fructose wet milling facility into a 60 million gallon per year ethanol plant and 10 million gallon per year edible oil extraction facility. Phases two and three will consist of adding a 10 million gallon per year cellulose-to-ethanol process, a 12 million gallon per year biodiesel plant, a 25,000 ton per year yeast plant, and a 60-75 Megawatt wind and biomethane based electrical generation facility. The asset purchase brings with it approximately 1,200 surrounding acres and a wind lease agreement. 
“I think this community should feel really good about the effort that has gone into the successful completion of this plant. What I’ve been told is every segment of this community got behind this effort and supported it,” Strickland said. “This is the result of people working together to accomplish something that is good for everyone. It’s going to be good for the farmers, the agriculture community in Ohio will benefit as a result of this plant.”
A Nebraska biodiesel plant that was under construction up until the middle of February, just weeks short of its completion, looks like it will be completed.
Bud Cummins, U.S. Canadian Biofuels CEO, said Monday a recent agreement with Home Federal Savings Bank, which issued the construction loan for Beatrice Biodiesel, will allow Beatrice Biodiesel to liquidate certain collateral currently securing the loan to provide a cash pool to complete the core construction at the plant.
There could be some new investors taking over the biodiesel operations of an Illinois soybean miller.
Willie Nelson’s BioWillie biodiesel fuel, which is already sold in Texas, Oklahoma, Mississippi, Louisiana, California and Tennessee, will add a key location when Willie’s Place at Carl’s Corner, Texas, opens this summer. The truck stop, built on the site of the first outlet to carry BioWillie, is located just off busy truck route I-35, which runs from the Mexican to the Canadian border. Billed as the biggest green truck stop in the United States, the facility will include 13 islands and 26 pumps, and all fuel sold there will have some percentage of biofuel, ranging from 5% to 85%.
Ethanol producer Golden Grain Energy of Mason City, Iowa is looking at getting into the biodiesel business by the end of the year.
At the recent Ethanol 2008: Emerging Issues Forum I spoke with Phil Lampert, Executive Director, 
According to recent price reports by Axxis Petroleum and the Oil Price Information Service, ethanol for blending is selling for as much as 10 to 35 cents lower than gasoline, depending on the market. Factoring in the blender’s tax credit, this means that the wholesale cost of E10 is between 6 and 9 cents less per gallon than gasoline.
Lots of information came out of last month’s National Biodiesel Conference and Expo in Orlando, Florida, and trust me, we did all we could to make sure you knew about the events through