Replies

Point one-There is no subsidy now for corn,
wheat, etc, for farms.

Point 2- No, crops can’t supply majority of our
fuel but they could do 10% of the gas. The reason
keep mentioning 10%, and it could be 7-8-9-11, is
it is a foot in the door that helps to break
monopoly of just oil. Look at the huge number articles
coming out telling all the lies about, all the
screwy machinations oil co are doing to it,
BIG Oil resisting using it in 10% blend, pushing
there own oxygenator, thatis a polutant and cancer
causing...... I learned when all the wrong people
and companies are fighting something this hard(seems
about as much hurrah as the election) it must
be the correct thing to do.

Three- That tax credit BIG OIL gets is wrong,
but it ain’t the fault of ethanol or farms.
BIG OIl gets 20 times more than that in other
tax credits also on oil production.

Four- If speculating rules being tightened up cause
a drop in prices here, I think other gov
would do the same, as they are in far more trouble
over high prices than we are, so we could show
the way. Other gov who aren’t ME oil producers
are in much worse condition over food than we are.

Five—And the word that oil supply margin is tight
isn’t true, as reports now say our refineries are
not operating 100% and present demand doesn’t need a
100%. Oh, the word is there and everyone believes it.
So it still goes back to speculators using
every trick and communications venue to cause rumors
and controversy, to drive up the prices of what they
own, to get the next speculator to buy. Then that
one does the same. All they care about is a little
profit on each trade, with only reservation being
that they try to be the next to last guy before
anything takes a dive. Ed

Point one-There is no subsidy now for corn, wheat, etc, for farms.

Ethanol is subsidized at more than one point. Some claim up to $1.5/gallon. All gets 51¢ at the blender, this supports a higher price for the fuel than the market would support otherwise.

http://zfacts.com/p/63.html

http://www.ethanolrfa.org/policy/regulations/federal/

http://www.ethanolrfa.org/policy/actions/state/

Point 2- No, crops can’t supply majority of our fuel but they could do 10% of the gas.

In 2007, the US used 3,390,977,000 barrels of motor gasoline. 10% would be over 14 billion gallons of gasoline. Using 151 bushels of corn per acre and 2.7 gallons per bushel that requires about 35 million acres of corn. A little over a third of all corn planted in in 2007. Add whichever fuel efficiency of ethanol/gasoline for mpg. Probably between 10~20% depending on who is making the argument. It is a production level that I agree can be reached.

Take out the subsidies above and I'm all for it.

Three- That tax credit BIG OIL gets is wrong

Tax credits? Look at the total tax bill. I believe no other industry pays higher tax rates than oil companies.

ExxonMobil 2007
Revenue $404.6 Billion
Profit $40.6 Billion (10.0%)
Taxes $102.5 Billion (25.3%)

Sales-Based taxes $31.728B
Other taxes and duties $40.953B
Income taxes $29.864B

2007 Financial & Operating Review
http://www.exxonmobil.com/corporate/files/news_pub_fo_2007.pdf
Page 16

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ConocoPhillips 2007
Revenue $194.5 Billion
Profit $11.9 Billion (6.1%)
Taxes $30.4 Billion (15.6%)

Taxes other than income taxes $18.990B
Income taxes $11.891B

2007 Annual Report
http://www.conocophillips.com/NR/rdonlyres/3838234F-F20C-4BCE-AE8D-78DE29D67455/0/07RevisedARfinal.pdf
Page 60

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Chevron 2007
Revenue $220.9 Billion
Profit $18.7 Billion (8.5%)
Taxes $35.7 Billion (16.2%)

Taxes other than income taxes $22.266B
Income taxes $13.479B

2007 Annual Report Supplement
http://media.corporate-ir.net/media_files/irol/13/130102/reports/CVX_ARsupp07.pdf
Page 3

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Marathon 2007
Revenue $62.8 Billion
Profit $4.0 Billion (6.3%)
Taxes $8.5 Billion (13.5%)

Consumer excise taxes $5.163B
Other taxes $0.394B
Income taxes $2.901B

2007 Annual Report
http://www.marathon.com/content/documents/investor_center/annual_reports/annual_report_2007_book.pdf
Page F-4

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Four- If speculating rules being tightened up cause a drop in prices here, I think other gov would do the same

You really believe that? Tell me what would make Dubai (UAE), a member of OPEC, want to do that?

Five—And the word that oil supply margin is tight isn’t true, as reports now say our refineries are not operating 100% and present demand doesn’t need a 100%.

Refineries don't produce oil, they consume it. As for gasoline production, US stocks have been falling but are still above average.

Oil is a global commodity and the supply margin on oil production is still below average.