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.
If ya ride, ya gotta pay the Piper.
Uh...because it's a political sollution to a scientific problem!!!!!!!
Archer Daniels Midland !!!!
We have the best government that money can buy.
In 1996, ADM was the subject of the largest price fixing investigation in history. Senior ADM executives were indicted on criminal charges for engaging in price-fixing with in the international lysine market. Three of ADM's top officials, including vice chairman Michael Andreas, were sentenced to federal prison in 1999 and the company was fined $100 million, the largest antitrust fine ever. ADM's annual report 2005 states that a settlement was reached under which ADM paid $400 million in 2005 to settle a class action antitrust suit (note 15, p. 52).
http://opensecrets.org/orgs/summary.asp?ID=D000000132&Name=Archer+Daniels+Midland
The reason behind this is coming from the petroleum industry. They want sole control of the market and have their minions churning out anti-ethanol propaganda like crazy.
Why does Ethanol additives cause gas prices to rise?
22 gal gasoline refined / 42 gal barrel crude = $1.7857 / gal (@$75/bbl)
ethanol spot price = $2.60 / gal
90% * 1.7857 + 10% * 2.60 = $1.867 / gal
$0.10 / gal producer profit
$x / gal refining/blending costs (variable)
$0.10 / gal refining profit
$0.12 / gal transportation cost
$0.09 / gal transportation profit
$0.04 / gal marketing cost
$0.04 / gal marketing profit
$0.08 / gal retailer cost
$0.08 / gal retailer profit
$0.184 / gal Fed excise tax
$y / gal State excise tax
$z / gal local tax
(see http://api-ec.api.org/filelibrary/mft04182006.pdf for various State & local taxes)
Why doesn't you know grammar?
An assumption. Some is imported. Just like oil.
What an excellent and informative thread you started, John Geyer. Thank you, and thank you to all FReepers who have contributed their knowledge and expertise on this subject. A day is never wasted when one learns something new. :)
Big Oil is spending big bucks knocking ethanol because it is in direct competition with them. They try every bit of negative propaganda and demagogery they can think up.
Eventually, the U.S.A. will be like Brazil, very close to being independent of Big Oil.
Every dollar spent on ethanol stays in the United States, not as in the case of gasolene, in the pockets of Venzuela, Saudi Araba, Iran etc etc, almost all of the money goes into the pockets of Arab princes or muslim mullahs.
I'm not reading all the posts here already.
So, has anyone mentioned how many millions of acres we'd need to satisfy the appetite for gasoline with this ethanol fad?
IOW, ethanol is sounding like the pipe dreams of enviro-mentals whose great idea about wind and solar power require millions of acres to = the power of nuclear or oil-based generating plants.
They're substituting 1 problem for another. Never fails.