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.