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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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US biofuel output moves up a gear
Hydrocarbon AlternativesBiofuel production has stepped up another gear in the USA, with two big new factories coming on stream this month and the government pouring another $97m (£49m) into projects designed to expand capacity.

The latest plant is owned by Louis Dreyfus in Claypool, Indiana, and has an annual capacity of 88m gallons (400m litres) of biodiesel. It was opened last week, just a few days after Imperium Renewables opened the USA's largest biodiesel plant, a 100m gallon (455m-litre) facility at Grays Harbour, Washington.

"The US biodiesel industry is committed to enhancing America's energy independence by replacing foreign oil with environmentally friendly, domestically-produced renewable fuels," said Manning Feraci, of the National Biodiesel Board.

There are now 150 biodiesel plants operating in the USA, with an average capacity of 9.5m gallons a year (43m litres), and another 95 are under construction. Domestic production has risen tenfold in the past three years and is expected to exceed 300m gallons (1.36bn litres) this year.

Similar rapid growth has been seen in the bioethanol sector, with 130 plants now up and running, with an annual capacity of 6.4bn gallons (29bn litres). According to the American Farm Bureau Federation, there are another 98 plants under construction, which will add 7.7bn gallons (35bn litres) to output.

Farmers Weekly

Posted on Friday, August 31 @ 11:55:00 PDT by rumspringa
 
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