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rusty70f100

What's really keeping ethanol alive?

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We know the oil companies have deep pockets.

 

So what is keeping them from dropping the price of gas and driving ethanol out of the market, or at least back to the 10% status it was years ago?  Are they just not that affected by it yet?  Or, are they enjoying too many tax credits for blending ethanol?  Or might the minimum markup law have something to do with it?  I would think they could find plenty of ways around that though.

 

Way I see it, ethanol is like a mosquito to the oil companies.  Eventually, it will start to itch and get swatted.

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Ethanol or E85 ..it's my belief that ethanol is actually a profitable situation for the Oil companies because of the blending credits.. E85 on the other hand is what they do not want to see expand.. and why we will see them attacking companies like Renew ..

 

any ethanol companies that "gets out of line" and starts developing E85 retail locations are targets

 

Rusty have you see the price of E85 and unleaded at Hudson lately ?

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Yeah, you have a point.  I use ethanol and E85 interchangeably when I probably should be more specific.  Thanks for the catch.

 

Yes I have!  Day before yesterday I was down there with the Explorer, and they had it at $2.259, where it's been for quite some time.  I guess I've been busy and haven't had time to keep the price updated.

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Oil companies don't price the crude or even commodity traded products like gasoline.  They let the NYMEX price it and then the oil companies collect today on the speculated market.  Example:  Crude is at $83-84 dollars today based on the anticipation of a rainstorm that could become a tropical depression in the Gulf of Mexico. Last week it went up on an Israeli bombing run on a Syrian nuke stockpile.  Week before it went up on speculation that supplies might be lower although more refineries are online.

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Meanwhile,  as unleaded gasoline supplies stagnate , price of unleaded stays roughly the same, and ethanol futures plummet... I thought I heard the two prices were supposed to be linked on the spot market, as the two are co-mingled at the terminal..

What gives??

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We have the backing of the people. They don't.

 

They really just have less of it, to an extent. They have people in a cycle too unfraid to break it. Some folks won't step away from gasoline because they think its the only option. Dare we call it a psychological monopoly? Maybe they have years of history that we don't have. We are the "new kids" on the block and we DO think we can take on the world.

 

The oil industry does not need to "die and go away"...it needs to cooperate. The corporate mergers that began in the 90's started after Clinton got in office and just sort of "let them go"

 

http://findarticles.com/p/articles/mi_m1295/is_1_63/ai_53531051

 

That was from 1999. I think he hit the nail on the head.

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We have the backing of the people. They don't.

 

They really just have less of it, to an extent. They have people in a cycle too unfraid to break it. Some folks won't step away from gasoline because they think its the only option. Dare we call it a psychological monopoly? Maybe they have years of history that we don't have. We are the "new kids" on the block and we DO think we can take on the world.

 

The oil industry does not need to "die and go away"...it needs to cooperate. The corporate mergers that began in the 90's started after Clinton got in office and just sort of "let them go"

 

http://findarticles.com/p/articles/mi_m1295/is_1_63/ai_53531051

 

That was from 1999. I think he hit the nail on the head.

To Blame Clinton is like saying Al Gore created the internet..  Besids all time  Oil profits are happening under Bush not Clinton..If the right thinks Clinton did such a terrible job they've had 8 years to to change course..

 

It isnt Compettion from within Oil that needs to happen but rather Competition from outside of Oil..

 

Ethanol , Electricity , Hydrogen etc..  All these DIFFERENT energy for vehicles Industries need to be in competition for our $ ..when only one Industry controls all the Fuel market they do as they please ..getting fat and lazy and rich.. Ethanol is already demonstrating it's ability to take Market share ..

 

 

 

 

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Oil companies don't price the crude or even commodity traded products like gasoline.  They let the NYMEX price it and then the oil companies collect today on the speculated market.  Example:  Crude is at $83-84 dollars today based on the anticipation of a rainstorm that could become a tropical depression in the Gulf of Mexico. Last week it went up on an Israeli bombing run on a Syrian nuke stockpile.  Week before it went up on speculation that supplies might be lower although more refineries are online.

 

I swear they will come up with any excuse to raise the price, whether or not it has anything to do with production  ::)

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