MN Valley Business

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industrial sectors to the residential sector (and lower overall electricity use), and relatively smaller changes in natural gas consumption across sectors. More than 99% of energy-related CO2 emissions come from the consumption of fossil fuels.

Biodiesel production stable

U.S. biodiesel production has seen smaller reductions in recent months compared with other transportation fuels, according to the U.S. Energy Information Administration. As a result of mitigation efforts for the 2019 novel coronavirus disease motor gasoline demand has declined significantly. The decline also reduced ethanol demand. Biodiesel production through May, on the other hand, was largely unchanged from year-ago levels because biodiesel is not constrained by the same blending limits as ethanol Biodiesel is the second-most consumed biofuel in the U.S. behind ethanol. The lack of significant blending restraints and the presence of incentives for producing and blending biodiesel have helped support biodiesel demand. From March to May, when COVID-19 mitigation efforts were at their peak, biodiesel production averaged 114,000 barrels per day, compared with 116,000 during the same period in 2019.

N.D. crude output plummets

Between December 2019 and May 2020, crude oil output in North Dakota fell from an average of 1.5 million barrels per day to 0.9 million b/d, a decline of nearly 42%. This production decline is greater than it would have been if producers solely halted new drilling and allowed production from current wells to naturally decline.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2019 - 2020 1500

1,262 1,168

1200 900 600 300 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Sales tax collections Mankato (In thousands)

- 2019 - 2020

600

$451,079 $429,123

500 400 300 200 100 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato $66,100

70000

- 2019 - 2020

$22,479

52500 35000 17500 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: City of Mankato

Mankato food and beverage tax - 2019 - 2020

An oil well just south of Watford City, North Dakota. MPR News . The principal driver of North Dakota’s production decline was low crude oil prices. After averaging $55.70 per barrel throughout 2019, monthly prices in North Dakota averaged $29.82 in May 2020. Second, many producers elected to stop or reduce drilling new crude oil wells, which is normally required to offset the natural decline in production from mature wells.

175000 140000

$65,684 $39,428

105000 70000 35000 0

J

F

M

Source: City of Mankato

A

M

J

J

A

S

O

N

D

C. Sankey

MN Valley Business • OCTOBER 2020 • 23


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