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dan45mcc

Industry watchers forecasting ethanol oversupply

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More glut new ..I'm not convinced but this is what "they" are saying

 

MINNEAPOLIS - In the 2½ years since Gordon Ommen cofounded US BioEnergy Corp., the company has quietly grown into one of the country’s top ethanol producers, with plans to double in size this year and grow its capacity to 1 billion gallons a year by 2009.

 

But Ommen knows there are challenges ahead for both his young company and the rapidly growing ethanol industry. Thanks to that fast expansion and some distribution issues, some Wall Street and university analysts predict the ethanol boom is about to stumble on a supply glut and shrinking profit margins.

 

http://www.eastvalleytribune.com/story/91734

 

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Drop the price of E85 below the usual 15% and it'll sell like crazy.

 

They really arent interested in moving E85 because it is a more expensive proposition than simply selling more ethanol as an additive to the oil companies ..the focus is E10 and when they get as many mandates as they can then they are moving to get E20 mandated ..  Dosent look like the Ethanol Industry is really concerned about offering alterntive fuels..why shold they be when they are making a killing off of ethanol as an additive

 

The Oil Companies are claiming (threating) that as long as Ethanol is promoted they wont build any more refining capacity ..focring Gasoline even higher and thye can scapegoat Ethanol as the problem

 

The Ranchers/Cattlemen/Dairymen/Poultry/Hog farmers all claim that Ethanol is taking all the grain/acreage for grain for fuel and because of that the price of Milk , Cheese, Chickens , Beef Pork eggs etc.. are all substantially higher and getting worse

 

The ethanol Industry seems to be in it for the quick buck and have not thought out very well all the issues ,real , preceived and made up propoganda .

 

 

What I know is ..

 

E85 represents just 1% of all Ethanol for Fuel.. I'll keep saying it until the media starts reporting the bottom line..E85 has nothing to do with any of these issues..at 1% it cant .

 

I'd love for the debate to be over the Alternative fuel E85 using up all the ethanol and everyone is pissed ..that simply isnt a reality and isnt going to be for many years down th eroad

 

 

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Want to hear another good one for E85 here in Iowa? I was just talking to a guy that was thinking of putting in an E85 pump and tank just north of me a few miles. If he did that and found he wasn't selling enough E85 the setup can't be switched to 10% or unleaded. Another good law. Like he said, even if we bumped 10% up to 15% here in the midwest, that would save transporting lots of ethanol long distance. I guess we'll be listening to some expert telling us it's too bad for the glut. He also told me they are transporting unleaded from over by Mason City because the closer terminals like Sioux City and Milford are out.

Marty

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