The Profitability of Ethanol Production in 201602/02/2017
The ethanol industry appeared to have a good year in 2016. The drop in crude oil prices continued to stimulate driving and gasoline demand (June 10, 2016), the EPA maintained a policy of pushing the conventional ethanol mandate upwards (November 30, 2016), and ethanol exports boomed. An interesting question is just how much these favorable factors increased the bottom-line of the industry. The purpose of this article is to examine this question by comparing estimates of ethanol production profitability for 2016 and to those earned over 2007-2015.