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Why does Ethanol additives cause gas prices to rise?

Posted on 04/27/2006 11:21:18 AM PDT by John Geyer

Edited on 04/27/2006 11:47:26 AM PDT by Admin Moderator. [history]

I would assume that ethanol, being produced by fermenting American grown corn into a useable fuel, would make gas cheaper, not more expensive. Instead of making the price of gas rise, I would believe that it would fall because we are using a renewable, home grown form of fuel. I guess I'm an idiot for not understanding the reasons behind this, but I ask for someone with more experience to explain it for me. I was telling my father how ethanol would make gas cheaper, and now I feel like a complete moron. Help me understand.


TOPICS: Your Opinion/Questions
KEYWORDS: energy; ethanol; gasprices; metalkpretty1day
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To: John Geyer

There was no provision ot have a supply line for ethenol! Replacing the millions of gallons of the MTBE was no match for what supplys we had in place. this is the Senates fault. The companys had no alternative but to discontinue the additive to avoid lawsuits.


41 posted on 04/27/2006 11:54:13 AM PDT by Bommer
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To: John Geyer
Because gasoline is cheap relative to other energy products.

As of 5 minutes ago, worldwide gasoline spot market price (for June delivery) is $2.12/gallon. Worldwide spot market price for ethanol (May delivery) is $2.62/gallon!

It's a good thing our cars don't run on 100% ethanol--or we'd be paying about 50 cents/gallon more than we are for just gasoline.

I guess that the ethanol companies are 'ripping us off' even more than the oil companies then, right? (sarcasm--off)

42 posted on 04/27/2006 11:56:05 AM PDT by stockstrader
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To: John Geyer
Fuel efficiency is diminished with ethanol. Therefore, we buy more fuel.

This is the congessional solution to all problems. MAKE THEM WORSE.

43 posted on 04/27/2006 11:58:40 AM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: stockstrader

Another thing to consider is the btu rating of ethanol as compared to gasoline.

I don't know exactly, but I think gasoline is somewhere around 120,000 btu per part. Ethanol is only about 70 to 80,000 btu per part. That means that your engine needs to burn more ethanol to get the same performance as gasoline.

I'm doing this from memory. I don't remember the exact numbers, I read this in one of the popular science or mechanics mags.


44 posted on 04/27/2006 11:59:15 AM PDT by Al Gator (Remember always to pillage BEFORE you burn!)
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To: OldFriend

As Ronald Reagan used to repeatedly say, "Government is not the solution, government is the PROBLEM"!


45 posted on 04/27/2006 12:00:19 PM PDT by stockstrader
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To: John Geyer
The whole disgraceful ethanol story is right here in this thread.
46 posted on 04/27/2006 12:01:24 PM PDT by defenderSD (¤¤ Wishing, hoping, and praying that Saddam will not nuke us is not a national security policy.)
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To: Al Gator

Exactly. That makes gasoline even CHEAPER when compared to other energy sources. Again, another example of government intrusion (due to environmental issues) increasing the price of gas.


47 posted on 04/27/2006 12:02:03 PM PDT by stockstrader
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To: John Geyer
The correct answer is that the addition of alcohol doesn't cause the price of gas to rise, but that the withdrawal of MTBE's causes prices to rise.

The withdrawal of MTBE's from the market had the effect of reducing domestic fuel supplies. While ethanol now replaces MTBE's, previously both were available. The withdrawal of MTBE's also has the effect of making ethanol production wildly profitable, which will cause its production to expand, which will moderate the price.

48 posted on 04/27/2006 12:04:37 PM PDT by Mr. Lucky
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To: John Geyer

If ya ride, ya gotta pay the Piper.


49 posted on 04/27/2006 12:04:53 PM PDT by azhenfud (He who always is looking up seldom finds others' lost change.)
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To: newgeezer

I operate an ethanol "plant". I have two varieties as output: wine and beer. The yeast I use produces an alcohol content of around 13% by volume for the wine, and 6% for the beer. Now if the feds would only remove the restrictions for distilling it I would be a much happier brewer!


50 posted on 04/27/2006 12:05:25 PM PDT by Real Cynic No More (A member of the Appalachian-American minority -- and proud of it!)
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To: TFMcGuire
Although, emprically, it does "seem" like 10% C2H5OH knocks mileage of my 2001 Silverado down at least 10% as well.

To achieve such a result—as if alcohol has NO thermal energy?—I can only guess your pickup's ECM is a Southern Baptist.

51 posted on 04/27/2006 12:07:18 PM PDT by newgeezer (Just my opinion, of course. Your mileage may vary.)
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To: Gorjus
The Popular Mechanics article was actually pretty accurate on its energy conversion ratio. The positive energy balance includes all costs of production of the corn crop.
52 posted on 04/27/2006 12:09:22 PM PDT by Mr. Lucky
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To: newgeezer

I took for granted he meant the E-85.

The 30% reduction in the energy of the molecule translates to a 30% reduction in mileage.

I am convinced, as well. that a 90/10 blend reduces mileage in my Silverado by at least 10%.

And I track my mileage nearly every fillup.

We've experience her in Denver with the 10% blends and I despise them for the reduced mileage.


53 posted on 04/27/2006 12:11:38 PM PDT by TFMcGuire (Either you are an American, or you are a liberal)
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To: John Geyer

Uh...because it's a political sollution to a scientific problem!!!!!!!


54 posted on 04/27/2006 12:14:18 PM PDT by G Larry (Only strict constructionists on the Supreme Court!)
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To: Trust but Verify
a government subsidy which I understand is about $.50/gallon.

A tax exemption is not a subsidy.

55 posted on 04/27/2006 12:15:04 PM PDT by newgeezer (Just my opinion, of course. Your mileage may vary.)
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To: newgeezer

Always look for empiracle evidence---not what you think should be so.

In chemistry the phenomenon that may be in play here is what is called the mechanism of the reaction.

Should does not necessarily equal will.

I keep track of my mileage, geeze and have been doing so for years.

I also have an educational background in the sciences.



56 posted on 04/27/2006 12:16:52 PM PDT by TFMcGuire (Either you are an American, or you are a liberal)
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To: Pukin Dog
Yeah but we can waste the fossil fuel domestically for machines and fertilizer and feel in control by paying our farmers to grow the corn....don't try to drill near me though or put windmills in my view plain or a nuclear plant on my planet or or or eat a fish that suffers as sushi. How do they think that way with a straight face...lol
57 posted on 04/27/2006 12:17:02 PM PDT by colonialhk (sooprize sooprize sooprize)
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To: Pukin Dog
Not true. I know what studies you might be referencing, and they do not take into account some of the refining, shipping and multiple 'cocktail blending' costs.

That's inaccurate: Argonne National Laboratory Ethanol Study

I have no great fondness for ethanol, but there are a lot of myths circulating, and many of them come from "deep ecology" types who want us to stop driving cars, or better yet, die off.

58 posted on 04/27/2006 12:18:29 PM PDT by B Knotts
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To: Real Cynic No More
Coincidentally, I caught a little bit of a blurb on the radio as I was waking up this morning, something about buying a still over the Internet.

The radio host mentioned that it costs about 70¢/gallon to make ethanol. He also mentioned one needs a Federal license to produce it legally.

Since it happens I just bought a flex-fuel minivan, ... ;)

59 posted on 04/27/2006 12:20:17 PM PDT by newgeezer (Just my opinion, of course. Your mileage may vary.)
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To: TFMcGuire

Okay then. You're the scientist.


60 posted on 04/27/2006 12:24:10 PM PDT by newgeezer (Just my opinion, of course. Your mileage may vary.)
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