The Ethanol Debacle

Canada Free Press ^ | 9--13-13 | Alan Caruba

[ROCKLOBSTER]

First, don't get me wrong. I am not a ethanol fuel proponent. There are many reasons to drop the failed ethanol-fuel concept besides claiming it is an engine killer. Largely the competition with the food industry for corn, and the lower BTU value of ethanol.

Gimme straight gasoline please.

I will concede that it attracts water and causes corrosion, and it may well, in higher concentrations, attack rubbers and plastics which are part of the fuel system. The fuel rail and injectors are about the only thing that could fairly be considered an actual part of the engine.

Brazil built cars that ran on pure alcohol, and there are cars built here called "Flex-fuel" vehicles, which can run on various blends. When Brazil discovered they were awash in petroleum...they backed off the ethanol.

[ROCKLOBSTER]

Is it true that we cannot export crude overseas?
Is it true that we can and do export finished product?

[Chaguito]

Is anybody paying attention to the effect of long-term mega-yields on soil chemistry, biology, and physical structure? I have serious doubts that that soil is as “renewable” as the left and sold-out politicians think.

[Mack the knife]

The farmgate price of the commodities in your grocery basket is about 14 cents on the dollar, an all-time low. Americans today spend less than 10 percent of disposable income on food.

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This analysis ignores the impact of corn prices in 3rd world countries, especially Mexico. Consider:

1) The US negotiated for over 10 years with Mexico on NAFTA, which finally allowed US companies to sell corn in Mexico. At that time, corn was produced by thousands of subsistance peasant farmers.

2) When US corn flooded the Mexican market, the price of corn went down, and thus the price of tortillas went down. Hooray from the corn consumers! Disaster for the subsistance farmers — they couldn’t match US prices, and had to quit farming. Instant unemployment [working for drug dealers begins to look attractive]. Instant migration north.

3) When ethanol mandates for gasoline hit, corn prices doubled ... in Mexico. When tortillas are your staple food, and their price doubles, very low income people go hungry. More Mexicans go north. [Working for drug dealers looks even more attractive].

Conclusion: the combination of NAFTA and ethanol really screwed the Mexican population. Unintended but predictable consequences.

[redgolum]

Fertilizer. If you don’t use it, your yields will not be near as high. That is the key for much of the high yield revolution.

[thackney]

Is it true that we cannot export crude overseas?

Export of Crude Oil is limited by permit requirements. We export very little, normally only a small amount to closest Canadian refinery.

Crude oil exports are restricted to:

(1) crude oil derived from fields under the State waters of Alaska's Cook Inlet;

(2) Alaskan North Slope crude oil; (since 1999, not before. For a few years there was a west coast oil glut and ~5% was exported then stopped when the surplus no longer existed and is no longer exported)

(3) certain domestically produced crude oil destined for Canada;

(4) shipments to U.S. territories; and

(5) California crude oil to Pacific Rim countries.

Is it true that we can and do export finished product?

Yes, we import more crude oil than we need, refine more than we use and export the surplus finished product. Much of that is the refinery “leftovers” that cannot be converted into highway transportation fuel. Examples would be petroleum coke and residual oil.

Definitions, Sources and Explanatory Notes
http://www.eia.gov/dnav/pet/TblDefs/pet_move_exp_tbldef2.asp

Weekly Imports & Exports
http://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm

Crude Oil Exports by Destinationhttp://www.eia.gov/dnav/pet/pet_move_expc_a_EPC0_EEX_mbbl_m.htm