Atlas Advisor - December 11
<<< Previous Articles
Happy Holidays!
Atlas Oil Company would like to wish you a happy and safe holiday! Remember if you have any feedback or topics you would like to see covered in the 2012 Atlas Advisor, please email us at marketing@atlasoil.com.
Atlas Hosts 3,000 Military Members at Annual Party
For the fifth straight year, Atlas Oil hosted a holiday party for our local service men and women at the Selfridge ANGB. This year, we opened up the party to the entire base – all branches of the military.
"This is just one small way that we say 'thanks' to the men and women of our armed forces that keep us safe and ensure our freedom. We are so happy to do this for them."
Each year the party gets bigger and better. More than 125 Atlas volunteers, customers and suppliers helped out with the event.
Click here to view additional photos and media coverage of the event.
Oil, Diesel and Regular-Grade Gasoline Predictions for 2012
With the New Year approaching, we look to the EIA's Short-Term Energy Outlook for a glimpse into the 2012 fuel industry. Just released this December, some of the highlights are as follows:
- Monthly average regular-grade gasoline retail prices in November 2011 averaged $3.38 per gallon, 52 cents per gallon below their 2011 peak monthly average in May. EIA expects that gasoline pump prices will remain at or below current levels until early spring 2012, when prices begin their normal seasonal rise. Projected regular gasoline retail prices average $3.45 per gallon in 2012.
- Diesel prices should remain steady at or below current levels. Historically, diesel averaged $2.46 per gallon in 2009, and $2.99 in 2010. Through November, diesel prices have averaged $3.85 for 2011.
- EIA expects the U.S. average refiner acquisition cost (RAC) of crude oil to increase slightly over the next year, averaging about $102 per barrel in 2012. West Texas Intermediate (WTI) crude oil has been trading at a discount to RAC for most of 2011, contrary to the traditional relationship. The forecast WTI price discount relative to the RAC narrows from an average $11 per barrel in the third quarter of 2011 to $3 per barrel by the fourth quarter of 2012, supported by the recently announced reversal of the Seaway pipeline in 2012.
(Source: EIA)
Biodiesel Tax Incentive Set To Expire; Thousands of U.S. Jobs
at Risk
U.S. biodiesel industry representatives are urging Congress to extend the biodiesel tax credit before it expires at the end of the year. The $1-per-gallon tax credit is set to expire on December 31st. The same tax incentive lapsed in 2010. Without the incentive, production dropped dramatically as dozens of plants shuttered and thousands of people lost jobs. However in 2011 the tax incentive was reinstated and according to the EPA, 2011 has been a record breaking year for production with more than 802 million gallons produced through October. It will likely triple last year’s production volume of 315 million gallons by the end of the year. The previous record was nearly 690 million gallons set in 2008. This provides a strong case to Congress, proving that strong domestic energy policy can create job growth and boost the U.S. economy. This year's increased production will support more than 31,000 jobs - up from fewer than 13,000 last year - while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study conducted by Cardno-Entrix.
This incentive is working, and particularly in this kind of economy when politicians say they're doing everything they can to create jobs, I can't imagine why Congress would allow it to expire," said Gabe Neeriemer, president of Patriot Biodiesel in Greensboro, N.C.
While most of the expiring credits can be extended retroactively next year without major impact, loss of the biodiesel credit will be felt immediately. Currently the focus is on renewing the payroll tax cut, extending unemployment benefits, and completing the FY2012 Appropriations bills before Congress adjourns for the year. While Senate Majority Leader Harry Reid has indicated a desire to address the tax extenders package before they leave, indications are the tax extenders package is more likely to be addressed in early 2012.
(Sources: National Biodiesel Board and Southeast Farm Press)
Ethanol – 2011 Review
In 2011 sky high corn prices caused deep concern in the industry. By the end of the year higher oil prices balanced out the market, giving ethanol producers the opportunity to lock in favorable margins. The margins were a pleasant surprise for many, with 2011 exceeding expectations. In addition, the industry was able to reach record breaking exports of ethanol. As the industry was set to produce a billion gallons more than what the RFS required, export opportunities to Brazil, Canada and Europe created a nice balance between production and demand.
The Renewable Fuel Standard (RFS) handled by the U.S. Environmental Protection Agency, is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. For every gallon of ethanol sold, that's one gallon of gasoline that Big Oil doesn't sell. And that, says Todd Becker, president and CEO of Green Plains Renewable Energy Inc., doesn't make the petroleum industry happy. As a result, the renewable fuel standard (RFS) will remain under attack. Defending the RFS will not only ensure a market for corn-based ethanol but can also make certain goals for the future are met. Without it you prevent next generation fuels from hitting the market.
E15 was another hot topic for 2011. Though approved by the EPA, has not resulted in retail sales at the pump. While E15 has opposition, it has gained support from NASCAR. A six-year sponsorship made it possible to put E15 in every NASCAR racecar at every race. When everyone was saying E15 won’t work, NASCAR says, "We've run it a million miles and it works fine."
Profitable gallons, increased exports and the RFS have all contributed to a successful year for the ethanol industry. Many industry leaders are optimistic these same factors along with the adoption of E15 into the marketplace will carry over into 2012, providing another successful year.
(Source: Ethanol Producer)
For Sale
Fast Track Ventures Has Your Opportunity!
Valero: 45310 Van Dyke, Utica, MI
Newly built three year ago. Great potential to increase sales and volume. Land contract available with 20% down payment. May change brand.
Citgo: 35526 Jefferson, Harrison Twp., MI
Not far from Schook Road in a High Growth area! New condos nearby. Appx. 1000 ft from the St Clair River. Pumps, Canopy and Tanks are in excellent condition. Room to expand or Raze & Rebuild. Land Contract Available with 20% down.
Call Victor Simon at 248-388-8753.
Click here to view other property listings.
