31October

Ethanol Driving Pump, Narrowing of Refining Margin

Why is there a witch hunt against ethanol? It is locally grown, instead coming of from Venezuela or the Middle East. It creates a stable market for sorghum, corn, cane, and sugar beets, all while saving the local family farms. There is MORE than enough ariable land in the USA to meet all conceivable demand. The idea that we cannot supply enough corn is a MYTH. Corn would not be going to fuel instead of food if our dumb government would stop subsidizing farmers to NOT farm, because now farmers have quit planting corn -- which means the proces will rise further. Why arre there any subsidies at all - was not the ethanol mandate enough? Ethanol as fuel was done 10X more aggressively by Brazil (which grows its own food supplies and oil) and Sweden (which does not), and it was successful in both those countries. The ethanol mix reduces the amount of petrol in a gallon, thus slightly reducing overall petroleum demand, thus slightly moving the demand curve down, thus minutely REDUCING prices form what they might have been with pure oil. The only reason it is not working here is because of government intereference. Ethanol, although not as efficient in the car as petrol, is a great idea. The only real problem is that the government will not allow the market to settle on a profitable and stable supply. Cotton Mather would be proud of the fashonable attacks on ethanol. But it is an interfering Congress and counter-productive subsidies that hurt the world.