Biofuel development may prompt changes in petroleum industry

If the biofuels sector continues its expansion to meet the renewable fuels mandate, big oil companies and midstream businesses may have to change their practices, according to a report from Standard & Poor’s. The development of advanced biofuels could change conventional refinery requirements and distribution programs, and rack and terminal facilities may need more tanks and mixing equipment to allow for new blends, S&P analyst Mark Habib said. Different specifications for pipelines may also need to be developed or current ones retooled to serve regions where the alternative fuels would be produced, he added.

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