Never let the facts get in the way.
Gentleman,
I know, I know, never argue with.....
Everybody's entitled to their own opinion rubbersidedown, but nobody's entitled to the wrong facts. I can't help myself. :biggrin
No luck, I can't even understand your question.
In order for any energy source to be viable, the fuel resulting from its production process must yield significantly more energy than that fuel took to produce. This is why the hydrogen fuel cell is not viable, as it takes significantly more energy to produce the hydrogen than the resultant fuel makes available in energy. Oil is very efficient as 100 units of energy expended to extract and refine it will result in 500 units of energy being made available in fuels (a 400% efficiency rate). That same 100 units of energy used to farm corn and turn it into fuel will only result in 130 units of energy from ethanol (a 30% efficiency rate). For this reason ethanol is not viable and only exists because of governmental mandates and taxpayer subsidies.
Ethanol has exactly .665 the BTUs of energy per gallon as gasoline. It takes 1.53 gallons of ethanol to equal the energy of 1 gallon of gasoline. According to United States EPA's ethanol mileage tests for all flex fuel models sold in the United States, ethanol gave exactly 2/3's the mileage of gasoline. If you think that paying one third per gallon less for a fuel that will give you one third fewer miles per gallon and requiring you to fill up one third more often is a great deal, then good for you. Perhaps somebody will develop a fuel that gets half the miles per gallon and costs half as much. Then you could really save big! A restaurant waitress once asked Yogi Berra if he wanted the pizza he just ordered cut into four slices or eight slices. His reply reminded me of your analysis. Yogi said, "Cut it into four slices, I don't think I could eat eight."
Perhaps you understand the law of supply and demand after all.
Boy, I'm sure glad you straighten me out on this one. Below is a photograph of one of my fuel invoices from the Chevron Oil Company for Arizona unleaded gasoline containing a small percentage of ethanol. Those idiots obviously don't realize that the ethanol blending credit that they include AND LIST on every one of my fuel invoices should only concern E85 which I don't even sell. I look at and pay those invoices every day and I thought I was aware of the ethanol credit until you told me I didn't know about it and that it doesn't even exist except as regards E85. The 10 gas stations in Arizona currently selling E85 as well as the ethanol plant in Pinal County, Arizona are all figments of my imagination. You could probably save major oil companies billions of dollars by pointing out to them their faulty understanding of legal and regulatory issues as regards their own business.
When exactly, was the last time you checked? Your careful analysis somehow missed those tens of billions of dollars doled out to millionaire farmers every year to support the price of crops at above market levels and, I love this one, not to farm a large percentage of their land. I have two good friends who have never farmed a day in thier life. They own substantial tracts of land and collect massive subsidies every year for not farming it. Hell of a deal!
This is hard to believe as you are an expert on everything.
I'm sure they appreciate the help.
Precisely the type of person who should be doing in-depth analysis of major industries that you have no experience with. Are you Bill Clinton?
Chip
Gentleman,
I know, I know, never argue with.....
Everybody's entitled to their own opinion rubbersidedown, but nobody's entitled to the wrong facts. I can't help myself. :biggrin
Chip-
You, being and Econ guy, should be able to explain to me a few things. Supply and Demand- Our farmers have been receiving the same price for corn since 1960 as they were up until the ethanol boom (circa 2003+) So, it is absolutely absurd that an industry found a new avenue for there product, and people are willing to pay it?
No luck, I can't even understand your question.
Corn may not be the answer, but it sure is a good start, and a VIABLE quick upstart.
In order for any energy source to be viable, the fuel resulting from its production process must yield significantly more energy than that fuel took to produce. This is why the hydrogen fuel cell is not viable, as it takes significantly more energy to produce the hydrogen than the resultant fuel makes available in energy. Oil is very efficient as 100 units of energy expended to extract and refine it will result in 500 units of energy being made available in fuels (a 400% efficiency rate). That same 100 units of energy used to farm corn and turn it into fuel will only result in 130 units of energy from ethanol (a 30% efficiency rate). For this reason ethanol is not viable and only exists because of governmental mandates and taxpayer subsidies.
E85 is $2.18 a gallon here, unleaded is $3.09, making a pretty good alternative to the consumer filling up his fuel tank at the pump.
Ethanol has exactly .665 the BTUs of energy per gallon as gasoline. It takes 1.53 gallons of ethanol to equal the energy of 1 gallon of gasoline. According to United States EPA's ethanol mileage tests for all flex fuel models sold in the United States, ethanol gave exactly 2/3's the mileage of gasoline. If you think that paying one third per gallon less for a fuel that will give you one third fewer miles per gallon and requiring you to fill up one third more often is a great deal, then good for you. Perhaps somebody will develop a fuel that gets half the miles per gallon and costs half as much. Then you could really save big! A restaurant waitress once asked Yogi Berra if he wanted the pizza he just ordered cut into four slices or eight slices. His reply reminded me of your analysis. Yogi said, "Cut it into four slices, I don't think I could eat eight."
Once again, the price of corn has raised by about 70%+/- in the last few years (from $2.10 bushel to $3.50), as has the price of wheat and everything else.
Perhaps you understand the law of supply and demand after all.
As far as the BLENDER CREDIT- this is in regards to E85, and if you don't know about it (becuase you live in AZ, who has ZERO E85 pumps at this time that I know about, www.e85fuel.com) I am going to go out on limb and say you just aren't aware of it. You may want to check with the guys in New Mexico (there are a few pumps in ABQ) and ask, or any other state that has ethanol plants.
Boy, I'm sure glad you straighten me out on this one. Below is a photograph of one of my fuel invoices from the Chevron Oil Company for Arizona unleaded gasoline containing a small percentage of ethanol. Those idiots obviously don't realize that the ethanol blending credit that they include AND LIST on every one of my fuel invoices should only concern E85 which I don't even sell. I look at and pay those invoices every day and I thought I was aware of the ethanol credit until you told me I didn't know about it and that it doesn't even exist except as regards E85. The 10 gas stations in Arizona currently selling E85 as well as the ethanol plant in Pinal County, Arizona are all figments of my imagination. You could probably save major oil companies billions of dollars by pointing out to them their faulty understanding of legal and regulatory issues as regards their own business.
Exploratory credits- the last time I checked there was no gov't funding available for too many other industries that posted HUGE profits
When exactly, was the last time you checked? Your careful analysis somehow missed those tens of billions of dollars doled out to millionaire farmers every year to support the price of crops at above market levels and, I love this one, not to farm a large percentage of their land. I have two good friends who have never farmed a day in thier life. They own substantial tracts of land and collect massive subsidies every year for not farming it. Hell of a deal!
I am not a farmer, I am not a gas station owner, and I am not anything important. I am not a millionaire, billionaire, nor have riches of any kind
This is hard to believe as you are an expert on everything.
we supported your industry since the late 1800's, and still do today.
I'm sure they appreciate the help.
Just a dumb gun-toten', rollin' in the mud, "where's yer sister at?" midwest hillbilly.
Precisely the type of person who should be doing in-depth analysis of major industries that you have no experience with. Are you Bill Clinton?
Chip
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