The Worlds largest Investment fund Blackrock, informs the SEC, that they now hold 6% of all shares in PEIX. According to law, it is mandatory to keep the SEC and public updated about holdings of shares, at a number equal to or higher than 5% of the total number of shares.
Pickups are king of the road.
Automakers sold more than 16.5 million new vehicles in the U.S. last year, up 5.9 percent from 2013. The most popular model, by a huge stretch, was the Ford F-Series pickup. In 2014, Americans bought 754,000 of them, making it the top-selling vehicle for the 33rd year in a row.
The F-Series trucks
alone beat Volkswagen’s total U.S. sales. And Lincoln’s. And Cadillac’s. And Mitsubishi’s. Combined.
The Ford F 6.2 L gas engine's recommended fuel is regular unleaded or E85. (Flexfuel vehicle).
Average MPG for all models = 16.
The #2 and #3 top sellers are also pickups.
Chevy’s Silverado came in distant second, followed by Fiat Chrysler’s Ram truck. The top three trucks combined for 1.7 million sales, or one in every ten new vehicles sold in 2014.
Big vehicles are booming and cars aren't keeping up.
Sales of light trucks grew five times faster than cars last year, increasing 10 percent compared to 1.8 percent for cars.
Since the end of the recession, sales of cars and trucks had been neck and neck: Americans bought about 39,000 more trucks than cars in 2013. But in 2014, light trucks dramatically pulled away, outselling cars by 685,000 vehicles. Sales of midsize cars, which include the typical family sedan, actually shrank 0.5 percent.
Large SUVs are enjoying a post-recession revival.
After slumping during the economic downturn, large SUVs—a category that includes American behemoths like the Chevy Suburban, Ford Expedition, and GMC Yukon—are again in demand. Sales were up 12.4 percent in 2014.
Luxury SUVs are getting an even bigger bounce.
Sales for top-end models including the Cadillac Escalade, the Mercedes-Benz M Class, and the Lexus GX 460, together jumped 14.2 percent.
There's a lot to mop up. By looking at the EIA figures from the latest weeks, it can be seen that the industry is producing approx. 980 thousind barrells per day. Over a year, that is 15.02 billion gallons or the actual nameplate capacity of the national industry.
And while stocks go up, rack prices of ethanol is still on the decline. California rack Price of today, Down 5 cents to 1.55 per gallon.
Related to last week, blending nationwide is up by 26 thousind barrells per day but production is up 29 thousind barrells per day.
Nationwide stocks have grown by 197 thousind barrells per day over the latest week. More than 20% of daily production are sent to stock.
Exports lagging badly?
Only one solution - quench production or lose money at present rates, I'm afraid.
Have they been released? I can only see from last week. Must have a proxy between me and EIA homepage.
I can see the Weekly Petroleum Status report from EIA though. And stocks of ethanol on the West Coast have risen approx. 8% over the week. That's something.
From Neil Kohler information in the cc, an additional non-operational plant at Canton, Illinois is also within the deal. It has a nameplate capacity of 38 Million gallon per year. Can be restarted as per demand.
Neil Kohler explicitly pointed out, that the overall condition of operational Aventine plants are at or above industry standards.
Specifically the 100 million gallon per year wetmill in Pekin, has had its gasfired boilers installed, spring 2014.
How can the owners of those warrants claim anything? As for my part, they are welcome to do the conversion any time. Just leave $61.50 per share on the table.
And when do they mature? March 2015? Worthless......
To extend the logic, cheaper oil and accordingly gas is expected to be good for the economy, so jobs will be created and more people will be on the road each day in cars, going to Work, no?
With low gas-Price, You could afford a bigger. car, running fewer miles per gallon.
Does it Work that way?
I saw a feature in Danish television, mentioning and showing snow and frost in Texas these days. Will we see polarvortices with snow and frost over the midwest, this year?
The Price of gas triggers car-sales in the US. General Motors, the biggest car-manufacturer in the US sold 14 percent more cars in 2014, than the year before.
With 274,483 cars sold, it was the strongest december in 7 years for GM.
Other car manufacturers also reports strong sales for december.
A total of 16.5 million new cars were sold in the US during2014. The highest number since 2006.
If a high percentage of these cars are 4-wheel driving trucks, it will mean higher gas-utilization and ethanol-demand for 2015.
More jobs will mean more driving as well.
Just low percentages increase in driven miles will mean a lot for ethanol-demand and balance.
As I see the Aventine deal:
Neil Koehler has announced, that ethanol-producing plants in the US are collectors items, since it's allmost impossible to build new ones that are approved by the EPA. CEO Rose of REX has stated the same.
Still PEIX here get's 315 mill gallon per year additional production capacity, going from 200 MGY to 515 MGY.
It costs a dilution of 42%, so from having 96% yield of the 200 MGY plants, equaling 192 MGY per year, the old shareholders now get 58% of (192 + 315), equaling 294 MGY per year.
The profit will come from a production of 294 MGY, instead of 192 MGY. That is a neat increase!
With positive profit margins running, PEIX could have made an excellent deal here.
We must remember that the Price of this, is accepting the debt of Aventine, equaling $135 mill. It could be payed out in 2 years time. That sounds very reasonable to me.
Thin margins due to the falling price of crude have stressed ethanol makers in the second half of 2014, which is probably what made this deal attractive to both parties. Pacific Ethanol got a good price and Aventine survived.
It wouldn't be logistically problematic to pump the ethanol from rail tank-cars to truck tank-cars at a convenient location. I bet it is Kinergy that will be in charge of it anyways....
It is no major issue.
I hate to point this out, but 17 mill. gallons per quarter can not be 3.3 mill gallons per month. It must be 5.7 mill gallons per month. :o)
This is a very good question. In the US, the addition of ethanol to gas is mandatory by law. Allthough the mandatory amount is unclear for 2014.
Adding ethanol is one of the best and cheapest ways to increase octane-rating and add oxygenate to the gas. And in both these 2 respects, ethanol has higher and better properties than any other additive I know of.
MTBE is going in the groundwater and will not do. It is made from natural gas and is possibly cheaper than ethanol but is a no go.
ETBE is made from ethanol and natural gas and is possibly slightly cheaper than ethanol. It does not vaporize as easy as ethanol, which is another advantage. It is the most common octane booster and oxygenate in Europe. Then Again, it is made from ETHANOL and natural gas, so...
The cheap gas calls for more driving in the Whole world and if You can point out a large scale producer of cheaper ethanol than the USA, please do.
The ethanol production last week was a new record and national stocks of ethanol has still gone Down. It seems that export holds up fine, so far. How much will gasoline prices go down further and for how long?
Dried Distillers Grain Price is working its way back up to where it was before the ban.
PEIX' Wet Distillers Grain will come up as well. Biproduct return might go back from 30% to around 35%. That signficant!
China Buys U.S. Grain Amid Signs Import Ban on GMO Corn to End
By Bloomberg News Dec 17, 2014 1:15 PM GMT+0100 0 Comments Email Print
China bought as much as 900,000 metric tons of a corn-based grain from the U.S. after the government was said to have approved lifting a ban on a genetically-modified variety of the crop.
China signed contracts for as many as 15 cargoes of dried distillers grain for shipment between December and March, according to a report today by the China National Grain and Oils Information Center. China is the largest buyer of the by-product known as DDGS, which is produced when corn is stripped of starch for ethanol production.
Purchases fell to as low as 100,000 tons in September and October after some cargoes were found to contain the unapproved MIR 162 strain of corn, according to Sylvia Shi, an analyst at Shanghai JC Intelligence Co. Imports were as high as 600,000 tons in June, she said.
The government has told traders and officials that the Ministry of Agriculture has approved imports of the MIR 162, a genetically modified corn variety that’s commonly grown in the U.S., two people familiar with the matter said yesterday. They asked not to be identified because the information hasn’t been made public.
“We are all watching whether these newly-bought DDGS cargoes can discharge in Chinese ports smoothly,” said Xia Rui, an analyst at Shanghai Flow International Trade Co. “More deals will follow.”
China, the biggest market for U.S. food and agricultural products, is seen to be relaxing curbs on corn imports as the government pushes forward with a campaign to gain public acceptance of genetically modified organisms and seeks to expand food supplies.