Biofuel Market Growing at the Rate of 40-50%

[M.D. Holloway]

September 2006, Research and Markets, of Dublin, Ireland, has recently released their report, "New Opportunities in US Biofuel Market (2006)", which provides an updated and detailed analysis of the US Biofuel market. The report provides an overview of the global Biofuel market, with exclusive focus on the US markets. It is also highly informative about the current and future market trends. The emphasis has been put on the analysis of critical aspects of the industry such as supply and demand structure, challenges & opportunities and others that will help clients to gain exclusive information about the industry.


Key Findings

- The Biofuel industry in the US is poised for tremendous growth in future. Past trends have shown that the industry is growing at the rate of about 40-50%, particularly driven by large Biodiesel demand in the preceding 3 years.
- The US concern for high oil import levels will stay here for atleast the next 20 years, which will force the government to promote Biofuels by providing more liberal policies.
- There is a lot of excitement with regard to production as many new production plants are under construction.
- The demand for ethanol has been increasing tremendously and has surpassed supply in the last two years. This is a clear indication of the expanding needs of the country.
- Demand will continue to grow as Biofuels finds new applications in aviation sector, automobile sector, fuel cell sector etc.


Key Players

This section provides the overview, key facts, financials and stock performance of several players like ADM, Corn products international, Amerigroup Corporation, Eastman Chemical Company.


Key Issues and Facts Analyzed

The research report also addresses the issues and the facts critical to business success, such as:
- What is the past performance of Biodiesel and ethanol in the US?
- What are the various government support programs that are supporting Biofuel growth?
- What is the economic impact of Biofuel?
- Price Analysis of Biofuel with conventional fuels?
- What is the impact of Biofuel on US oil sector?
- How is the supply and demand situation for Biodiesel and Ethanol?
- What are the potential market segments for Biofuel?
- What opportunities and challenges exist for Biofuel in the market?


Research Methodology Used


Information Sources

Information has been sourced from namely, books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, industry news and developments and through access to more than 3000 paid databases.


Analysis Methods

The analysis methods include the following: Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools, Judgmental Forecasting and Cause and Effect Analysis.

[gaijindabe]

When croplands around the world are turned into bio-fuel sources - look for soylent green production to increase..

[Superman]

You must be mistaken, Mike. Several conservatives here said it couldn't be done. We're doomed to our dependence on ME oil. Just a couple of weeks back. Energy independence is impossible for us, for a variety of reasons/excuses. Dubya's plan is the only available course of action. We're wasting our time on this stuff. Out of our reach. We're only "Americans." We need to focus our time on being scared of terrorism.

[red-beard]

Supe, if you think Biofuels are the answer, I want to know what the question is...

Lube, is there anything in the report about the legislative initiatives in the US congress and the potential effects on the biofuel industries?

[gaijindabe]

Since it does not make any sense in meeting real energy needs (but it sure does sound good!) look for biofuels to go the route of "windpower" and be propped up by tax credits and write-offs.

Cargill, ADM, the farm lobby and Wall Street will have the best laws money can buy.

[fastpat]

Originally posted by red-beard
Supe, if you think Biofuels are the answer, I want to know what the question is...

Amend to that. As long as ethanol is including via mandatory and subsidized government programs, we get a very skewed view.

Lube, is there anything in the report about the legislative initiatives in the US congress and the potential effects on the biofuel industries?

Interesting question.

I can buy B20 biodiesel locally, suppposedly made from Soybean oil. It looks like I'm seeing a mileage decrease with it of at least 1.5 to 2 miles per gallon. I'll use it a while longer, and switch back and forth a couple of times to check.

[Superman]

See what I mean. These guys will support "Mission Accomplished" and other fables everyone else knows are untrue, but won't accept any evidence that energy technology is advancing. Unless, I suppose, somebody comes up with a single, no-cost technology that replaces every existing energy source.

Guys, when the Oil President leaves office in two years, tremendous advances will take place that will substantially reduce our dependence on ME oil. In the meantime, the oil industry may break some more world records in profiteering. But as we have discussed, it is okay with you guys that we are paying 50% more for gasoline now than at the start of the Dubya "administration" while oil company profits are the greatest of any coporations in our nation's history. Pretty interesting the way you guys explain that away.

[M.D. Holloway]

I am not a big biofool proponent. I fact there are prolly more problems associated with biofools than benefits. You will see a power loss with ethanol.

That being said, I can also see the writing on the wall and the "in" thing is the bio-based products. To that end, I have dropped several large into a pre-IPO of bio-fool plant and will look for a nice pay out once it goes on-line.

As far as I can see, the only way to reduce dependency is to not use as much - carpool, public transit, walk, bike, motorcycle it, bascially just reduce the use.

[M.D. Holloway]

Originally posted by Superman
...it is okay with you guys that we are paying 50% more for gasoline now than at the start of the Dubya "administration" while oil company profits are the greatest of any coporations in our nation's history. Pretty interesting the way you guys explain that away.

Supe - old saying, "We can't change the wind but we can adjust the sails..." Personally, I do not like the major fuel companies but I am also pragmatic which means I have invested in them.

Yes, I am a hypocrite and in certain social circles that are dominated by liberals, I am sure they would look down upon me but so be it. I have a family to feed & house, education to pay for and someday a car to completely restore. Thank Gawd not everyone follows my lead other wise it would be a nation (world) made up of profiteers. Somebody has to take a higher stand…it just ain’t gonna be me.

[turbo6bar]

More biofuel in the free market can be good, but you gotta put things into perspective. 40-50% growth when output is virtually zero is still not a lot. We need biofuel usage to grow by orders of magnitude to make any dent in our fuel consumption.

[fastpat]

Originally posted by turbo6bar
More biofuel in the free market can be good, but you gotta put things into perspective. 40-50% growth when output is virtually zero is still not a lot. We need biofuel usage to grow by orders of magnitude to make any dent in our fuel consumption.

Correct, and putting huge sums of tax money in Archer-Daniels-Midland's pocket, like we do now, ain't going to help any.

[red-beard]

Originally posted by Superman
See what I mean. These guys will support "Mission Accomplished" and other fables everyone else knows are untrue, but won't accept any evidence that energy technology is advancing. Unless, I suppose, somebody comes up with a single, no-cost technology that replaces every existing energy source.

Guys, when the Oil President leaves office in two years, tremendous advances will take place that will substantially reduce our dependence on ME oil. In the meantime, the oil industry may break some more world records in profiteering. But as we have discussed, it is okay with you guys that we are paying 50% more for gasoline now than at the start of the Dubya "administration" while oil company profits are the greatest of any coporations in our nation's history. Pretty interesting the way you guys explain that away.

Supe, on our planet, the 2nd and 3rd laws of thermodynamics mean something. How do they work on your planet?

Turbo: there isn't enough land to produce food and replace even 1/4 of our fuel needs with biofuels. We need to be even more radical and go to nuclear. It works. it is economical and we could replace all of our power and heating needs in less than 10 years. That would leave our domestic natural gas and coal derived gasses to be used for transportation.