Originally Posted by
Buster
Thanks Buster- I like the last one-
10. “You don’t even need gas to run your car.”
Cars run on gasoline—but not all cars need gasoline to run. In fact, 6 million cars on the road today (mostly from U.S. manufacturers and built since 1998) are “flexible fuel” vehicles that can run on E85, a fuel that is 85 percent ethanol and only 15 percent gas. When Minneapolis resident John Schafer bought a car in late 2001, he chose a Chevy Tahoe because it’s a flexible-fuel car. Since then he’s filled up almost exclusively with E85. The big difference he’s noticed: Cars using E85 get about 15 percent fewer miles to the gallon. But it’s a drawback he’s willing to put up with. “I’m committed to the technology,” Schafer says. “With E85, it burns cleaner so it won’t pollute as much.”
While E85 generally costs less than regular gas, there is some concern that it may grow prohibitively expensive as demand outpaces supply: By 2006 ethanol was not just being used in E85—it also composed 15 percent of every gallon of gas sold. Supplies of ethanol are likely to grow thin, which could drive up the price of E85. And even die-hard Schafer says he won’t buy E85 if it starts to cost more than gasoline.
One correction in that data- he says "there is some concern that it may grow prohibitively expensive as demand outpaces supply: By 2006 ethanol was not just being used in E85--it also composed 15 percent of every gallon of gas sold. Supplies of ethanol are likely to grow thin.."
That is simply wrong information. First off, E85 only represents currently about 3% of all ethanol sales. That's up from 2% a year and a half ago. Yes, it's gone up, but there is still way, way more capacity to make E85 that is being used that way.
Most of the ethanol is being used as a blending component. And it's not 15% of a gallon of gas, in most markets it currently around 5%, with some up to 10%. You won't find it above 10% today, unless someone using it in an unapproved way. The EPA is considering raising the percentage to 15%, but that is very unlikely, as Underwriter's Lab is saying they don't know the exact effect on equipment at 15%, and they want millions more in fees for further testing.
Capacity to make ethanol is now close to 10 billion gallons a year- up from 5 billion gallons just two years ago. Again, only 3% is being used for E85 production. And research is still going on for the next generation of ethanol- that made from other plants. Cellulosic Ethanol is expected to pick up a significant amoutn of production a decade from now, but the technology to make it still isn't what it needs to be in order to be commercially viable. IN the meantime, we've got plenty of corn in this country- farmers grow way more than is needed for fuel productions, and there is lots of land to plant more if the market decides that what we're going to do.
Today, only about 30% of airable farmland is actually being used for farm crops. Much of the rest is enrolled in government programs NOT to grow things, as a price support to farmers. They get tax money NOT to grow anything, and leave the land fallow. Last year, when market traders bid the corn price up to $8 a bushel, farmers were begging the federal government to break their farm subsidy leases and allow them to plant corn instead. Since then, corn is back down to normal levels- $4 a bushel, and there is still plenty of corn- so much so that about 25% of the crop simply is wasted in piles at railroad loading docks, or on the ground outside.
We are a long- long way from having a time when E85 demand will equal production capability. So for at least the foreseeable future, ethanol E85 is definitely the way to go for fuel. Today, about 20% cheaper than gasoline in most places. I see it's actually a 30% cheaper price spread out in California this week. That should boost E85 sales. See E85 prices nationwide at http://e85prices.com
Price in Sacramento, California yesterday:
Gasoline: $2.89, E85 at $1.99
Go E85!
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