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Omaha World-Herald Editorial: "Ethanol looks to the future"

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http://www.omaha.com/article/20110826/NEWS0802/708269971

 

...While the 35-cent subsidy and pro-ethanol policies have been in effect, costing taxpayers about $6 billion a year, use of ethanol in this country has jumped from 1.6 billion gallons in 2000 to 13.3 billion gallons last year. The prosperity of many small Midlands communities has risen along with it.

 

Gasoline station owners who install pumps to dispense higher-percentage blends of ethanol would have gotten incentives under the congressional legislation. E-85, with is 85 percent ethanol, is already sold in a few places for flex-fuel cars designed to use it, but blends of 15 percent and up are also practical in today's vehicles — if there are service stations that sell it.

 

Three Midlands senators — Ben Nelson and Mike Johanns of Nebraska, and Iowa's Charles Grassley — supported the bill that would have extended the subsidy in part and re-directed money toward incentives for, among other things, refitting gasoline stations for higher-percentage blends. Convincing consumers to demand the higher blends could achieve that goal without the taxpayer assist.

 

The federal rule restricting most gasoline sold in this country to 15 percent ethanol or less also has limited what could be even greater ethanol use. The Environmental Protection Agency is moving, slowly, toward raising some of its limits on ethanol.

 

Much of the price break that ethanol-blended gasoline enjoys over regular will disappear with the subsidy. E-85 in particular will see its price rise; its $1 per gallon advantage will be nearly eliminated.

 

Todd Sneller, administrator of the Nebraska Ethanol Board, said marketing of E-85 would have to concentrate more on its status as an alternative fuel made in the United States. And, he said, "It really does help to accomplish . . . objectives (involving) health and the environment," such as emitting less polluting gases.

 

He suggested that ethanol supporters may want to join with the producers of other alternative fuels, such as natural gas, in lobbying Congress to speed up the national turn toward alternative fuel vehicles. Electric and hybrid cars are already on the market; cars that burn compressed natural gas are available, as are flex-fuel vehicles that can burn higher percentages of ethanol...

 

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for an ethanol editorial... it is a pretty good short piece.... worth following the link to read more...

 

Sounds like the Neb Ethanol Board is looking more towards ethanol as an alt. fuel then as a gas additive...  Refreshing...

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here is another article (not editorial) that goes into more details on what the NEB is proposing the future for the ethanol industry will be...

http://www.omaha.com/article/20110816/MONEY/708169967

 

like this map of the ethanol plants in Nebraska and Iowa...

http://www.omaha.com/apps/pbcsi.dll/bilde?Site=OW&Date=20110816&Category=MONEY&ArtNo=708169967&Ref=V1&Profile=1030817&maxw=600&maxh=400

 

(sorry, couldn't find a way to copy the map... just the link to it :-[)

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Todd Sneller, administrator of the Nebraska Ethanol Board, said marketing of E-85 would have to concentrate more on its status as an alternative fuel made in the United States. And, he said, "It really does help to accomplish . . . objectives (involving) health and the environment," such as emitting less polluting gases.

 

 

 

Enough if the Bull Shat.. Stop the e10 nonsense  and e85 can compete on PRICE at the pump. It is the over production of E10 that has raised the price of corn that makes it difficult this summer to compete at the pump..

 

 

Todd Sneller is a moron if he thinks anything... anything other than PRICE moves E85 sales

 

 

E85 is already an Alternative fuel ..it is e10 that is nothing more than  a whitewash for gasoline.. the corn lobbys cash cow. Not one American has ever asked for E10..No one cares about E10 except the corn lobby..it isnt even an alternative fuel.

 

 

E10 is killing E85 it really is that simple ..Oil and the corn lobby are producing 1.4 Billion Gallons MORE than required by law (which has moved the price of corn from $4 to $7.50 a bushel in under a year) just so thy can get their filthy greedy grubby hands on the Taxpayers money

 

 

 

 

 

post-1-138947093184_thumb.jpg

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When prices are way high (like they are now), and price can't be marketed to attract buyers... you really do have to look at how else to attract consumers.  Though they should be looking at other ways to work on the primary attraction (price)...  In the mean time they need to do some good marketing to continue to grow their alternative fuel base other then price.  Can anything be done to push/nudge/guide... the ethanol industry out of the back pocket of the oil industry? 

 

The way I see it... the "big boys" in the ethanol industry (ADM, Cargil, Poet...) do not care that much (other then for minor PR purposes) about e85 and alternative fuel.  When you have several billion gallons of a product to sell (ADM has a 1/2 billion capacity site in Columbus Nebraska)... talking about local distribution, blender pumps and FFVs... is not going to cut it.

 

They need/want short term high volume blend.  They are not in it for the "long term" good of the industry/public/country...  they are in it for the short term profit.

 

I see more local producers being gobbled up by the "big boys"... 

 

Hate to propose a "conspiracy theory"... but do you think the "big boys" of ethanol could be intentionally driving up the cost of corn/ethanol to drive out/scare out the small producers?

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When prices are way high (like they are now), and price can't be marketed to attract buyers...

 

 

But Husker the prices are high BECAUSE of the corn lobby  !  The Lobbying for additive blends is WHY the price of corn is high..thus the reason the price of ethanol ..specifically when used as an alternative fuel like E85

 

 

They can HIDE the high price of corn/ethanol is E10..they CANT hide the high price when used as E85..

 

 

Then they have the Gall to tell re85 drivers to live with it? that it simply needs to be promoted  differently?

 

 

Bull Shat..    Get the price right by stopping this greed that is causing high corn prices..

 

 

We don't need 15 BILLION gallons of E10.. Change the Renewable Fuel Standards from 15 Billion gallons of corn ethanol  to 8,9 or 10 billion.  Or change the allowable limit from E10 to E5.E6 or so to bring down the price of corn

 

 

That is how Brazil is handling the high cost of Sugar..they have pulled their base fuel from E25 to E18

 

 

We have a choice we can support E10 or we can support E85..we can support corn ethanol as an additive that is forced on all drivers or you can support an alternative fuel like E85 .

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I agree with you, and see your reasoning... and Brazil is a great example...

 

But HOW does this ever happen here?  Oil is making money, corn is making money, ethanol (big guys) are making money...  these are the folks that write the legislation, and fund the campaigns of those who pass the legislation...

 

Years ago we thought corn ethanol would break the back of big oil.... well, is sounds more like oil bought the soul of corn ethanol... now we have the same problem, only bigger (the cancerous greed has spread)...

 

How (other then everyone making their own ethanol out of their wood shed like some members on here do) do we change this?

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I keep looking at an old deferred payment contract dated Dec. 2 2004. I sold the corn for $1.64 a bushel. I still believe BILLION DOLLAR hedge funds have a lot to do with the high price we are experiencing since yields have increased and I can't believe actual use has increased proportionately.

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I keep looking at an old deferred payment contract dated Dec. 2 2004. I sold the corn for $1.64 a bushel. I still believe BILLION DOLLAR hedge funds have a lot to do with the high price we are experiencing since yields have increased and I can't believe actual use has increased proportionately.

 

 

The crop tour put corn yields at 147.9 bushels per acre versus the August 11 USDA report of 153. If realized we could see ending stocks under 300 million bushels and corn in need of much higher prices to ration the crop. Here's the irony. The yields and eventual ending stocks number comes before the government addresses acres lost due to spring flooding and doesn't allow any room for increase export demand from China as the trade expects. It's the poor growing season and expected demand and usage that has some crop analyst talking $9 and $10 corn eventually but as  always take one week at a time and the long-term  takes  care of itself

 

Read more: http://community.nasdaq.com/News/2011-08/the-grain-report-conditions-continue.aspx?storyid=92696#ixzz1WYhSau2W

 

I'm just looking for some SANITY ..it makes absolutely no sense what so ever to be producing 14 Billion gallons of corn ethanol ..especially when 99% of it is used as nothing more than an additive for Gasoline when it is CLEAR that corn has far to much pressure on it..between weather and E10 ..we cant do anything about the weather but we can pull back on E10 production especially when 1.4 Billion gallons MORE than is required by law is being produced...the only thing that is being accomplished is running up the price of corn cost the Taxpayers and consumers tens of billions that is simply going to traders , corn lobby  and Oil (Oil getting the direct blenders credit)

 

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Just did some figuring but you guys know I'm not the sharpest tack. In 2004 we had a record crop of 11.8 billion bushels and I sold for $1.64. Now enter ethanol using 5 billion with a third going back as distillers so really 3.4 bil. and the price of corn is roughly 4.5 times more in price. Wow!!! I also got to thinking that ethanol has cut into gasoline sales by 10% so maybe when I read somewhere that ethanol has caused gasoline to be $1 to $2 a gallon cheaper it's true. I thought that a little far fetched but now I wonder. Getting back to all these predictions on yield, does anybody really know. It's not in the bin and we could have some more problems and not harvest. I'm hoping to average 140 bus per acre but who knows, maybe I'll be fortunate and harvest 180. Its still green and we just had a little rain so it will keep filling. The point is, if I don't know, does anyone else? Another thing, I have about half of what I hope to harvest priced around $6 and just talked to a friend that is a big farmer in Illinois and he started selling quite awhile ago in the low $4's. He has half of what is going to be harvested priced just under $6 so it isn't all going to be $7 -$9.

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I also got to thinking that ethanol has cut into gasoline sales by 10% so maybe when I read somewhere that ethanol has caused gasoline to be $1 to $2 a gallon cheaper it's true.

 

 

Cessna this is a bit dated but you get the idea

 

 

e10results.PNG

http://www.nrel.gov/analysis/pdfs/44517.pdf

 

 

 

 

 

 

No matter what the number is if reducing E10 to E6 means the price of Gasoline(as E5) would go up 20 cents or 50 cents ..whatever then G-O-O-D

 

 

Then the gap between E85 and Gasoline widens and MORE People will seek out high blend ethanol like Gasoline..The CONSUMER would actually seek out ethanol as an alternative fuel E85..instead of being force fed ethanol as an additive E10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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So at that point, why not just drop E10 down to E0?  Put it all toward higher blends.  E10 is probably the worst blend there is for mileage (and cost / mile) anyway, in my experience.  In my opinion, it (E10) has given ethanol the bad reputation that it holds with most people.

 

Just don't take away my E20.  I'm getting too good mileage on it.  ;D

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