Stronger export numbers and lower acreage boosted corn prices since the end of June. Concerns about demand weakness in ethanol production emerged recently. A recovery in economic activity helped ethanol plants ramp up production as gasoline demand increased. A resurgence in virus incidences threatens ethanol production over the short run and injects uncertainty into long-run prospects.
Gasoline demand recovered to almost 89 percent of pre-coronavirus lockdown levels in early July. Despite this positive development, the recovery in demand flattened out over the last few weeks. Gasoline stocks began to recede but still sit substantially above levels seen at this time of the year. Attempts to reopen the economy hit a snag as the virus spread rapidly around the country after initial hopes saw a rapid opening in many areas. At 8.648 million barrels per day, demand recovered substantially from the low point of 5.311 million barrels per day seen in early April. The path back to normal gasoline demand levels appears stalled. Ethanol production followed this recovery and will feel the implications of flattening gasoline use. Continue reading
By: Erika Lyon, Agriculture & Natural Resources Educator, Ohio State University Extension Jefferson & Harrison Counties and Dan Lima, Agriculture & Natural Resources Educator, Ohio State University Extension Belmont County
Across the state of Ohio, landowners are receiving offers to lease their property for the development of oil and natural gas wells, pipelines, or utility-scale solar projects. While the state is regionally divided between the two, with shale development primarily occurring on the eastern side of the state and solar development being concentrated in southwestern Ohio (with some exceptions), the questions about legal agreements, construction, and oversight of both are similar. Continue reading
By Eric Romich, Field Specialist, Energy Development
Farmers have long explored options to provide energy savings associated with their agricultural operations. Ohio State University Extension and the Ohio Soybean Council have partnered to provide research-based data-driven tools to help Ohio farmers assess and navigate various energy infrastructure investment options for their farm. Specifically, the project team is interested in learning more about your experience and interest in implementing energy management strategies such as peak demand reduction, power factor correction, and/or the integration of solar generation systems to reduce electricity costs on your farm. Continue reading