David Jackson

Larry Kumins: Ethanol Use May Peak Soon

In answer to the comment above: Seeking Alpha is strictly independent. See the section on Editorial Principles here:

seekingalpha.com/page/...

If you want to submit a pro-ethanol article to us, our editors will consider it for publication.

In the meantime, we do have rules about comments. They are best expressed by in words adapted from Kara Swisher's:

We will not tolerate comments that contain personal attacks or question the motives, rather than the views, of others. If you think the author of an article or the people or companies written about are wrong, feel free to say so and to argue why you think so. We welcome such critiques and alternate views. But we will remove comments that call people corrupt, or stupid, or contend that they are taking positions because they are evil or immoral.

Do Biofuels Harm More than They Help?

Good article -- with a high degree of relevance to investing in this sector.

Georealist ("So..the investment upshot of this article is...?"), DirtSimple ("This has nothing to do with investing ..."), and Lefty (I'm sooo sick of tree huggers..."): You've missed a crucial point here. As Gabby pointed out in a comment on this article seekingalpha.com/artic... , there is currently a 51 cent/gallon tax credit for US ethanol producers. At least part of the reason for that is the growing concern about the environment among voters.

But as the environmental case for biofuels weakens, political support for subsidising them will wane. Note:

seekingalpha.com/artic...

So tree-hugging, feel-good environmental babble has a LOT to do with investing in this sector, because if sentiment towards biofuels turns negative, the political support for the subsidies will disappear, and the corn ethanol stocks will implode.

5 Must-Read Stories in Oil and Alternative Energy

Gabby, Great info. Thank you.

Punkin611, Please tell us more about the stock. What do you like about it? What's the upside, and what are the downside risks?

5 Must-Read Stories in Oil and Alternative Energy

Gabby -- really interesting; thank you! What's the key transportation problem: moving the raw material (in this case sugar or corn), or moving the ethanol?

Also, any idea whether there are differences in plant building costs for corn versus sugar based ethanol production?

5 Must-Read Stories in Oil and Alternative Energy

Gabby and Geral, thanks for clarifying that Cosan isn't a corn-based ethanol producer.

Questions for you: In your view, how do the economics of sugar based ethanol compare to corn-based ethanol? Don't you think that both will drive up the price of the underlying commodity? And given that the transport problems are the same, how much do you think the difference between corn and sugar matters?

Five Oil and Alternative Energy Developments to Watch

Strobe, I'm thinking not for a while. I don't see any real competitive advantage, and they've consistently diluted their shareholders because they haven't made money for so long. The cash that they raised is now falling in real value due to inflation. And the telecom equipment sector continues to consolidate, and that hurts the component vendors. What's to like about the stock to make me cover? Not a lot.

Willtom, that's really fascinating. Can you provide any more details and tell us about what you do?