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Re: demise of fuel with ethanol?


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Posted by RodInNS on November 25, 2013 at 08:52:36 from (216.118.158.123):

In Reply to: demise of fuel with ethanol? posted by bill mart on November 25, 2013 at 00:58:18:

I don't think ethanol is going away any time soon...
Personally, based on my gut instinct, I believe the energy cycle of ethanol is a pure loss equation. The profitability is based on market cycles and prices for corn and gasoline.... so sometimes there will be money in ethanol and sometimes there won't be. I don't believe that the existence of ethanol has made ~any~ measurable difference in the price of oil/gasoline/fuel. What it has done is re-monetize cropping in north America and throughout the world. The fact that one can now turn a profit in growing a crop is, in my mind, a good thing. It removes the need for the government to continually subsidise the production of staple crops to maintain a reserve. As far as corn's usage in fuel is concerned... I would imagine that after a few boom/bust cycles and the debt gets written down enough... the plants will stabilise and probably the price they pay for corn will as well. So I think ethanol will be around for some time to come.

Rod


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