Diesel Fuel Settles (CONT’D FROM PAGE 30)
Other companies such as Marathon and Diamond Green Diesel are joining the effort. All told, the past year has seen the production of 3.2 billion gallons of green diesel, about two thirds of which was biodiesel. Schaeffer figures that by 2030 production should top 15 billion gallons. Currently, renewable diesel and biodiesel account for about five percent of U.S. diesel demand, and there has already been some favorable effects. The Clean Fuels Alli- ance America, an organization of biodiesel producers, es- timates that renewable fuels account for a little over three cents a gallon of price suppression. The larger benefits of green energy, however, are expected to be more medium than short term in nature. Industry watchers feel that it will take three to five years before a significant growth in green diesel production will assist the broader diesel market. A larger concern is the effect the green energy produc- tion may have on food availability—particularly soybeans. “Currently, renewable diesel and biodiesel production consume roughly 35 percent of soybean oil production,” said Lipow. “And there is enough renewable diesel capaci- ty coming online this year and next to increase demand for soybean oil by another 10 percent. We can certainly divert crops to fuel, but that gets us back into the debate about food for fuel.” Another technology, electric vehicles, may also help loosen the diesel market. “The growth of EVs may lessen
some two million barrels a day, equivalent to about 1.5 per- cent to two percent increase in world refining capacity. Another contributor to an increase in diesel supply is the green energy movement. “We are seeing a tremen- dous growth in investments to produce biodiesel and re- newable diesel,” said Schaeffer. “Having more renewable
BCN(US)202209(QS1227)(o)(出血5mm).pdf 1 2022/8/30 下午 02:02:21 Major oil refiners jumping onto the green bandwagon include Phillips 66, Marathon Petroleum, and Chevron. All are investing in new refining capacity or transitioning old- er petroleum operations to make more renewable diesel. biofuels helps not just keep the price down a little bit, but also it helps with more supply being available.”
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32 December 12, 2022
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