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    • Ethanol Is Dead: How You Can Still Profit From It [view article]
      Corn ethanol is constantly bashed for its energy value. Here are some numbers from a talk given by Michael Wang from Argonne National Labs at the National Press Club in Aug. 2005. He cites 21 studies on the energy value of corn based ethanol; 12 show a positive energy balance, i.e. more energy obtained from the corn than energy used to process the corn. The other 9 show a negative energy balance. Of these, 4 are by Pimental who has railed against corn ethanol for years. Argonne uses the GREET model which is a "well to wheel" analysis and they get the same negative energy balance if they use Pimental's assumptions. This model is available in the public domain at www.transportation.anl.../

      Dr. Wang also reports the following energy balance numbers using the Fossil Energy Ratio = energy in fuel / fossil energy input

      cellulosic ethanol 10.3
      corn ethanol 1.36
      coal 0.98
      gasoline 0.81
      electricity 0.45

      I don't hear people complaining about the 20% energy loss in making gasoline or the >50% energy loss in making electricity. That is because these uses of energy are the norm and few people are aware of the energy balance associated with these highly convenient carriers of energy. Note a couple of these numbers were already posted by Enes K.

      Corn ethanol is not the silver bullet for meeting our transportation energy needs. Right now no silver bullet exists. Maybe one will be found. For now it appears we will need to develop multiple technologies to displace the current set of multiple energy technologies that we use in transportation, heating, and generation of electricity.

      Overall, corn ethanol is a step in the right direction and IMHO should be considered as a stepping stone technology just like hybrid cars. The floods will be gone next year. Maybe we should consider shorting corn in the next few months?       Jun 30 11:47 AM
    • Nordic American Tanker: An Intriguing Play [view article]
      I've been in and out of NAT for the past few of years. It is a great dividend company especially if you are in it for the long haul as Tim Plaehn has suggested. I first bought at a high point, but dollar cost averaged on the downside and made a great dividend along the way as well as a good profit. I currently have a long position in this company and picked up more at $26.50. The next 3-6 months look very good for the dividend and the stock price. If you can stomach the volatility in the spot market tanker rates and hold over the longer term you will be well rewarded. Apr 07 02:26 PM
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