Recently, widespread flooding has significantly impacted lifestyles in many communities
throughout the Midwest. The water has displaced many and will continue to do so until
life returns to normal. Unfortunately, a sense of “normalcy” may be some time off.
The Petroleum Industry has already felt an effect of the flooding especially from an
ethanol perspective. For instance, Nebraska, the second largest ethanol-producing
state in the country, was the hardest hit by the floods with 80 percent of its counties
declaring emergencies. And it’s not necessarily a problem with the ethanol not being
produced; rather it’s more with ethanol delivery. Ethanol must be shipped across state
lines in most cases via rail. With the widespread flooding, ethanol-loaded railcars
cannot traverse the railways further disrupting the flow of fuel. As a result, ethanol
shortages will become more frequent at sites nationwide leading to steadily-increasing
prices at the pump, if stations have product to pump at all.
But in no way is this cause for panic or alarm. Floodwaters will begin to recede in the
coming days and weeks, and life will slowly begin returning to normal. So, too, the flow
and delivery of ethanol.
In order to learn more about the results of this most recent flooding, please contact a
member of the Clean Fuels National sales team at: 260.346.2500.