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Will Big Oil Kill Ethanol In Trump Administration?

by Ken Root

Listen Here: Money Matters-12-20-16

corn-ethanol-us-policySince the turn of the 21st century, Iowa has bought into the Ethanol Industry. We turn more corn into ethanol than any other state. The ethanol industry is a viable business model for rural communities with many jobs generated directly and indirectly.

The Trump Administration however, has begun appointing hardliners who come from Oil Producing States. In their past political jobs, they have made no secret that they want to diminish subsidies and programs that benefit ethanol.

The Head of the Energy Department in the Trump Administration is Rick Perry, former governor of Texas.

The Head of EPA is Scott Pruitt, Oklahoma’s Attorney General.

The likely Secretary of State is Exxon Mobil CEO, Rex Tillerson.

None of those appear to bode well for the Ethanol Industry.

Bob Dineen is the CEO of the Renewable Fuel Assocation, and he says “It’s not the Scott Pruitt Administration. It’s not the Rick Perry Administration. It’s not even the Rex Tilerson Aministration. It is the Donald J Trump Presidency.

Iowa Governor, Terry Branstad believes in the Ethanol Industry, and that the state will not suffer at the hands of oil advocates.

If the clean air standard is still enforced, ethanol has shown to be the most effective and economical oxygenate compound.

However, not having a guaranteed 10% of the fuel supply could bring down ethanol prices and production in the future.