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- Study Shows Ethanol Energy Efficiency Is Growing [view article]
- Ethanol Stocks: The Good News and the Bad [view article]
- Ethanol: Our Answer to Reducing U.S. Dependence on Foreign Oil [view article]
- Ethanol Stock as Cheap as an Ear of Corn? [view article]
- Alternative Energy Investors See High Oil Prices as Temporary [view article]
- Two Ethanol Plays: Pros and Cons [view article]
- Cramer: "Ethanol Is a Fuel That Doesn't Work" [view article]
- Beware of the Allure of Ethanol Investing [view article]
- Is the Ethanol Mandate Likely to be Repealed? [view article]
- Majority of Americans Support Ethanol [view article]
- Ethanol Is Dead: How You Can Still Profit From It [view article]
- Ethanol Is No Field of Dreams [view article]
Recent AVR Articles
- Study Shows Ethanol Energy Efficiency Is Growing
- Ethanol Stocks: The Good News and the Bad
- Ethanol: Our Answer to Reducing U.S. Dependence on Foreign Oil
- Two Ethanol Plays: Pros and Cons
- Ethanol Stock as Cheap as an Ear of Corn?
- Is the Ethanol Mandate Likely to be Repealed?
- Majority of Americans Support Ethanol
- Ethanol Is Dead: How You Can Still Profit From It
- Ethanol Is No Field of Dreams
- Beware of the Allure of Ethanol Investing
- Full List of Articles »
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It's Now 'Official': Ethanol Is a Scam [view article]
And it must have really hurt Krugman to fess up, since his candidate's campaign (Hillary Clinton) is now partly funded by Ron Burkle's ill-gotten proceeds from the ethanol scan (via Bill Clinton's business interests). ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
Some people made a lot of money out of this scam I bit you. We are having an Ethanol boom, now we need to wait for the bust (it's the norm these days). ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
Americans are always quick to embrace a well sold solution. Who could complain about something that would help the farmer's. Except for the fact that it would backfire on everday consumer's who end up paying more for food and still have high gasoline prices. Has it really helped anyone but the farmer's and ADM??? ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
I am writing this in answer some of the debates going on around ethanol at the moment and provide some facts, most of this is mis information coming from research paid for by the oil companies, see TIME last week.Most research companies who are looking into cellulosic are developing either specific enzyme mixes, chemical processes, a combination of both or micro organism based maceration of the cellulose. NOTE. these companies may develop the technology but they will license it. What is important is the infrastructure to distil the mash and then distribute the ethanol. VSE is in a great position to benefit from this because it has scale and the infrastructure. In addition, Vse is part of a JV which is working on Cellulosic using micro organisms this is medium to long term.
In terms of biodiesel the two primary plants will be on line end 2008 and will help reduce the impact of the corn price giving VSE two revenue streams from one raw material, putting VSE in a strong position.
Finally, corn will come down soon, $6 is a silly price and not realistic, the food verses fuel debate is not real it is being fuelled by the oil companies, look at who bankrolled the article in TIME last week.
The real issue is Energy security, the more ethanol from USA corn in your tanks the less dependant the USA is on foreign imports. This is a no brainer as oil will go up as the middle classes in India and China grows (see India/China automotive growth targets for next 5 years links at bottom). In addition it keeps USD in the USA, this is why Brazilian ethanol is also not a good solution. Every percent of ethanol from USA produced corn in the tank of a USA driver means that money is being retained in the USA economy and that the country is less reliant on foreign imports, don’t be surprised at E/20 at a station near you in the few years.
What I predict will happen is the business will be built using Corn, this will pay for infrastructure. Then more effecient methods of ethanol production will be developed (cellulosic for example) and this infrastructure will be put to work. Production prices will come down and profits will go up.
FACTS DATA LINKS
China is increasingly concerned about an escalating dependency on oil imports. About a third of China demand is met by imports, projected to rise to the American level of 55 percent by 2030. Just a decade ago, China was a net oil exporter.
Link to presentation on India automotive component industry growth acmainfo.com/docmgr/St......
Morgan Stanley Auto and Auto Parts Global Insights www.uscc.gov/hearings/......
Crude oil price increases since 2003 (graph 1994 – 2008 should be the trend setter) en.wikipedia.org/wiki/......
Petroleum Life Cycle of 42 countries dieoff.org/42Countries......
EIA International Petroleum Monthly www.eia.doe.gov/ipm/su...
SUMMARY
Ethanol from corn is not the answer alone, it is a first step.
Ethanol is not that environmentally friendly, but more so than oil, and that isn’t the point anyway.
Energy security is the key issue
Oil prices are NOT EVER going to come back down to 40 or 50 USD per barrel, they will be driven up even further because…..
Demand is increasing and will outstrip production and will continue to do so.
In the end oil prodution will decrease and until it is gone, some people say this started to happen in 2006 some say in 2012 I don’t know but it will definitely happen.
Look at the company NOT the corn from ethanol debate and see if you think the company is best positioned for the future
DISCLOSURE
It is in my interest to pump this company as I own stock however facts are facts, I am a private individual and not a day trader I am based in Europe and am English. Reply
It's Now 'Official': Ethanol Is a Scam [view article]
One thing people forget is that ethanol improves emissions, now that MBTF (?) has been shown to easily contaminate groundwater, so it does have a purpose. But we desperately need to put R&D into cellulosic ethanol instead of tax rebates to big oil and coal! That's just insanity, but Pres. Bush continues to cut funding for clean energy, despite his talk. We're coming up on peak oil, and this is imperative for our economic future! Not to mention we need to quit funding both sides of the war in Iraq.DrCanDo - how do you think solar doesn't have a positive EROEI? Can you provide something to back up a statement like that?? Reply
It's Now 'Official': Ethanol Is a Scam [view article]
Ethanol is a renewable fuel. A bushel of Corn for $6.00. Omigod. Except a bushel of corn is 50 pounds of shucked kernels. Could you? Would you grow 50 pounds of shucked corn kernels for $6.00. Yikes, pretty soon we might be able to stop subsidizing farmers! If you don't like Ethanol, how can you support solar, etc which take more power to make than they produce in their useful life. Biodiesel and Ethanol are good alternatives for fuels to put in our fuel tanks and will get more cost effective as oil prices go sky high. We could just keep liberating countries that have oil, but the world is running out of oil. ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
In defense of ethanol, when we started our local plant, no one wanted our corn, and you couldn't give wheat away! No farmer I knew forsaw a future of food shortages and high prices. We thought it was a good way to help America, ourselves, and fight Cargill and ADM (who later sabotaged and bought out our plant for a song).I think now many farmers (out of the few that are left) realize that ethanol is not the best long term solution but they are desparate not to return to hanging on by their fingernails year after year. Reply
It's Now 'Official': Ethanol Is a Scam [view article]
Tim - any solution that helps reduce dependency on foreign oil will provide 1000's of jobs and free up money for spending on items other than fuel. So why not decide to give the tax breaks to a process that is actually efficient and sustainable? All of this arguing is a moot anyway, as eaters can easily outbid fuel producers for corn, beans, or any other popular food to fuel source. Ethanol from corn and soy diesel will soon be strangled by their own inefficiency and better sources of fuel (landfill waste, camelina, sugar, etc). Unless gas prices keep soaring:( Replyuel
It's Now 'Official': Ethanol Is a Scam [view article]
Check this:www.setamericafree.org... ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
I bought "gasohol" in the seventies on the promise it would free us from foreign oil. In college, we were converting carbon dioxide and hydrogen into methane. It was deemed uneconomical and besides carbon dioxide was crucial to earth's carbon cycle. Without CO2, the earth would go into another ice age. ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
It is, of course, a scam, when you're promoting domestic corn ethanol and imposing prohibitive tariffs on imported sugar cane ethanol. The stated justification for ethanol doesn't mesh with the policy of impairing the easiest way to produce it. ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
So we are responsible for feeding Africa. Maybe they could learn to grow their own food!Right now ethanol reduces our gas consumption by about 4%. It supplies jobs for 1000's of people. Farmers are making good profits and buying machinery, supplies, cars & trucks. Too bad this "scam" provides a good living to so many people! Reply
It's Now 'Official': Ethanol Is a Scam [view article]
Write your congressman - a joke! On 1/31/07 I sent Lugar & Hill, my men, a letter outlining this mess we're in now - and the inflation is just starting. Wait a few more months until the grain fed meat products cycle into the stores and restaurants! The international relief agencies are already out of funds so those starving numbers will jump out of sight. Ah well, the wars must go on! Replyuel
It's Now 'Official': Ethanol Is a Scam [view article]
Nothing, nothing is worst than having someone who is totally ignorant on a subject, write about that subject. The fact that you have a PhD next to your name, doesn't mean that you are qualified to talk about any subject. Yes, producing ethanol from corn is idiotic, as the yield if made with sugar cane, would be 7 times higher. No, ethanol is not a scam, and no, it is not the cause of deforestation in Brazil. Have you ever checked the areas in Brazil where they grow sugar cane? Go do your homework, come back and apologize for your misleading statement. Ethanol from sugar cane is one of our best alternatives to decrease our dependance on oil. We could grow sugar cane in areas of Texas and Louisiana, and remove tariffs to bring oil from the Caribbean region, instead of importing oil from Arab countries and Venezuela, who hate is. ReplyIt's Now 'Official': Ethanol Is a Scam [view article]
While it is true that the grain ingredient cost of a box of cereal is just a tiny portion of the purchase price, this argument ignores the effect of the increase in transportation costs, that subsidizing ethanol has helped produce. By hanging our hat on the ethanol hook, we have gone in the wrong direction, and contributed hugely to the increase in transportation costs.......just as we did in the 1970-80's. We tried this dance once, and it didn't work then. Why were we not intelligent enough to realize that unless there was some significant new technology to contribute to lowering overall costs, this was doomed to failure again? The first commentor, 'pk de cville', said it all, and best. It is now time to use 'intelligence based' initiative to start to solve this problem. Reply