The U.S. Energy Information Administration (EIA) released its monthly Short-Term Energy Outlook (STEO) today. April is the month that includes a forecast of the peak demand summer driving season fuel use, which runs from April through September. Total gasoline use is forecast to be down by 15 percent compared to 2019; and ethanol blending is forecast to be down 20.4 percent based on the blending economics from a forecast average price for regular gasoline of $1.58/gallon versus $2.72/gallon last year. The bigger hit to ethanol use comes in Q2, with a 27 percent drop year-to-year; blending is forecast to be down 13 percent in Q3 compared to the same period in 2019. Production is also forecast down dramatically through 20...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.