Biodiesel Supplies

Currently, production capacity is 580mm gallon more than 1,400 gallons MM should be filed within the next 18 months, bringing the total supply of about 2 billion gallons per year. Demand is very strong because of tax incentives and government regulation, but at some point the market price of biodiesel should decrease as consolidation in the market offer (like Exxon) will bring down prices lower . Currently the price for biodiesel is about $ 2.75/gallon. What is the impact of supersaturation of supply in the price of biodiesel?

Do not worry, the demand for diesel is still strong, even with stronger conservation measures. The offer, on the other hand, is less certain. Now I am not an economist, and I am not an expert on oil markets, but I took ECON 101, so I know that basically the price is set by supply and demand. I also know that the theory of "peak oil" that seems real. I believe that consolidation "could reduce costs and potentially lower prices. As long as you're not talking about building up of a monopoly, then I doubt that consolidation will be a critical factor, it's just one of many minor factors. The energy sector is changing from year to year, but I doubt it will change radically overnight in a way that is unrecoverable. Usually, a variety of investment products and provides stability and less volatility in the market is probably good in the long run for consumers, small businesses, and green energy.

... http://www.evergreenbiofuels.c Flag

The price will drop.

laws of supply and demand are at stake in this situation and they always will be. if supply exceeds demand the price or supply will drop or they will focus on other markets and supply to keep demand. most likely they will hit the track advertising to increase demand