Oh No, Mr. President. Not the Donuts.

Oh No, Mr. President. Not the Donuts.

​Reese Energy Consulting today will quickly recap the latest earnings news so we can move on to the more pressing matter striking fear in the hearts of Krispy Kreme and Dunkin’ Donuts. Energy Transfer, Enable, Continental, Devon, and EOG all reported stellar Q2 results, and the U.S. retains its title as the world’s top crude oil and NGLs producer. Nice job. Now, on to the plight facing the nation’s largest baked goods companies and their new, unexpected alliance with the oil and gas industry. The EPA now wants to increase biofuels volume requirements to further reduce fossil fuels dependence. Biodiesel is blended at the refinery using soy oil—a staple ingredient used by commercial kitchens and bakeries. Around 40% of the nation’s soy oil goes to producing 20 billion gallons a year of biofuels with the rest reserved for manufacturing food. So, our baked goods friends are sounding the alarm that an increase of the EPA’s Renewable Fuel Standard level would tighten, if not choke, our consumption of sugar-glazed joy, while smaller refineries could be forced into bankruptcy. The end of a Baker’s Dozen?

What do you think? Learn more about REC and our range of energy services at www.ReeseEnergyConsulting.com.

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KM Just Hopped a Stagecoach

KM Just Hopped a Stagecoach

Kinder Morgan is getting seriously serious about diversifying its vast midstream business. Reese Energy Consulting today is studying the latest news from the Houston-based pipeline behemoth, which now will expand its operations into the Northeast with a $1.23 billion acquisition of N.Y.-based Stagecoach Gas Services. The deal includes four storage terminals and three natural gas pipelines that service the Marcellus with a total delivery capacity of 2.9 BCFD. This adds to KM’s existing 9,500 miles of pipelines that flow 2.4 MMBPD of gasoline, jet fuel, diesel, natural gas, and NGLs across the West, Southeast, Midwest, and Canada. But there’s more. As recently as last week, we learned Kinder Morgan plans to go full-on carpe diem on its 3,000 miles of petroleum products pipelines and storage network by adding “trader” to its resume, joining Energy Transfer in the buy/sell of refined supplies. And not to be forgotten, KM in March launched a new joint venture to implement a sweeping menu of clean-energy technologies into its own operations as well as commercialize them.

What do you think? Learn more about REC and our range of midstream services at www.ReeseEnergyConsulting.com.

Kinder Morgan

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals. Kinder Morgan owns an interest in or operates approximately 85,000 miles of pipelines and 152 terminals.

www.kindermorgan.com

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