Biodiesel and Ethanol Investing

Oil & Gas Journal reports that major oil companies and midstream firms face changes in how they do business if biofuels production expands at the rate required by the U.S. renewable fuel standards (RFS), a credit rating agency reports. Currently, RFS-mandated volumes are almost 10% of U.S. liquid fuel demand. The RFS requires increasing production of grain-based biofuels and advanced biofuels at a pace that could more than triple current biofuel production by 2022. Standard & Poor’s Rating Services analyst Mark Habib expects a combination of second-generation biofuels will most likely be required to meet RFS mandates.