Value Microcaps Junior Energy

[kel3]

PEIX,I See the railcar Issue Playing Out

Ethanol Concerns Due to Surge of Oil Shipped by Rail
and Rail Traffic -

The peak freight seasons are triggered by ~

1.) The exponential growth in crude oil shipments by rail (Tank car shortage and ensuing Rail Traffic)
2.) Summer Fuel Demand
3.) Summer Coal Demand from Coal Fired Power Plants - (Air Conditioning Surge)
4.) Rail Volume do to the strengthening of the economy
5.) Bountifulfall grain harvest
6.) Shipment of retail merchandise for Christmas
7.) Transportation of new vehicles to dealers for the start of the new model-year
8.) Weather

The unknown is whether the railroads can adriotly adjust the allocation of their rail assets, primarily locomotives and crews, to accommodate this increase in freight volume without impacting.

They Were Not Able to On the Frozen Rail Surge and are Still 7 Weeks Behind.

Oil industry forecast is for rail shipments of crude oil to continue to increase each year as the U.S. accelerates toward achieving energy independence, projected to occur post-2020.

Ethanol Movement to the West Coast will be a Problem as
the problem is centered around BNSF,the North Rail Line
to the West.Which Goes Right Thrue North Dakota,The
CENTER of the Bakken Oil Shale Where the MAIN Problem
is Located.
http://www.argusleader.com/story/news/2014/03/27/rail-bottleneck-grain-ethanol-shippers/6946393/ …


Brazil has Limited Ethanol Due to the Drought.

Percentage of Feedstocks can Avoid Rail Delay

( 30% Sorghum will Ease Corn Shipping Delays )
1.) Southern Sorghum Rail Route from Texas is Uncongested, a Bushel of Sorghum is $1 Cheaper
than a Bushel of Corn right Now.

2.) 15% Raw USDA Sugar Pre Bought and With In 10 Miles of the Idaho Plant Also Eases Corn Need
and Potential Corn Shipping Delays.

3.) 5% to 10% of Corn Is Locally Sourced

That Leaves 45 to 50% Corn Subject to Delays .

This Should Not be a Problem as between Rail Surge Traffic Clogging.

They Can Fill their Massive Storage Bins with Corn Enough to Get thrue Rail Delays

- As a Result PEIX Will be Able to Run at Maximum Capacity Unaffected by Delays

and Will be Able to Capitalize On High Pricing during Ethanol Shortage in the West from Rail Clogs.

- Tanker Car Shortage will not affect PEIX , as Tanker Cars Will get Stuck in the West from Traffic.

The Majority of PEIX's Local West Coast Movement is by Tanker TRUCKS.

The Rail Industry Will be struggling for years with rail-related delays.
http://www.businessweek.com/articles/2013-11-14/2014-outlook-warren-buffett-cashes-in-on-railroad-tank-cars …

For these reasons I see Pacific Ethanol benefiting from Ongoing Surges in rail delays.

Remember the rails are 7 Weeks behind Now because of the Weather Clog and Tanker Car Shortage.

7 Weeks is abought how long Brazil's Current Ethanol Crush will Last. ( Sugar does not Store like corn, It Rots )

Leaving a 2 Month Ethanol Crush Season or Less because of
the Drought.Drought to hit Brazilian cane yields in H2
https://www.agra-net.com/portal2/pl/home.jsp?template=newsarticle&artid=20018097298&pubid=ag047 …

http://www.platts.com/latest-news/agriculture/london/brazil-will-have-tough-time-competing-with-us-21215596 …


Brazil Exports to the US will Dry Up Soon , Leaving Ethanol Ripe for a Summer PRICE SPIKE.I See this Volotility and Up Swings
Continueing at Least On the Coasts.
.http://www.aviatelive.com/wp-content/uploads/2014/03/53.png … http://www.aviatelive.com/trader-watch-us-macro-abengoa-thyssenkrupp-charts/ …


~ Then in June,You Also have the EPA Most Likely Increasing
the Reduced Ethanol Mandate by 1 Billion gallons according
to Articles I've Read.

Then You Have the US. Bio Fuel Trade Mission
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/free/news/template1&product=/ag/news/bestofdtnpf&vendorReference=0353b2fa-34a2-481b-912d-1cb46058ad3a__1393418596916&paneContentId=88&paneParentId=0 …

Ethanol Producers Looking for a Port to Export From, Which
Pacific Ethanol has 2Deep Water Port Facilities.

Ethanol Exporters Search for Port Access
agriculture.com/markets/analysis/corn/ethol-expters-seek-pt_9-ar41427 …

(Stockton and Boardman)
http://www.pacificethanol.net/our-company/biorefineries-and-locations/stockton-california … http://www.pacificethanol.net/our-company/biorefineries-and-locations/columbia-boardman-oregon …

Bakken Oil Companies Competing for West Coast Port Locations
http://www.oregonlive.com/environment/index.ssf/2014/03/oil_train_terminal_near_clatsk.html …

Bakken Oil and Nat. Gas Export Hub and Refinery,
Ex West Coast Bio Refinery with Many similarities
to Pacific Ethanol's Port Facilities.
http://www.opb.org/news/article/1-billion-methanol-export-facility-planned-for-port-westward/ …

Clogged Panama Canal Makes the Gulf Not Good for
Export,as Well as Hi Cost Shipping.
... http://grab-media.com/premium-videos/5236416 …


Madera restart May 1,"We are approaching 100-percent ownership,”
http://www.thebusinessjournal.com/news/energy-and-environment/11142-madera-ethanol-plant-restart-target-may-1 …

USDA $4 Corn for a Decade Helps
http://www.agweb.com/farmjournal/article/power_hour_usda_projects_sub-4_corn_for_a_decade_NAA_Ed_Clark/ …

This is My Case Why PEIX is Still Good Right Here.