CPST1

Ethanol: Our Answer to Reducing U.S. Dependence on Foreign Oil

Distribution is a very important component to the "blend" where an increase supply of ethanol can likely reduce the demands for shipping fuels. Lessen the demand for gas in one area and home heating oil in another, and the composition of supply and demand changes dramatically.

We've only begum to see the change over and yet, arbitrage is a significant key to any sort of ethanol speculation as much as the concept. The possibilities of blending may well benefit all sectors of fuel, although the author carefully states that as much ethanol that can be produced can be used for transportation needs. The criticisms of ethanol do not consider a reduction for the demand of fuel, or the cost to transport that fuel and are therefore not fully warranted.

The basic means test will be the day when a gallon of home heating oil once again, cost less than a gallon of gas. At that stage ethanol will have effectively saturated the market.