Posted on 04/04/2018 2:48:40 PM PDT by bananaman22
The Trump administration seems to be leaning towards allying with the oil refining industry in its fight against Big Corn and federal rules requiring the use of corn ethanol.
Reuters reports that the U.S. EPA apparently granted an exemption to Andeavor, a large oil refiner, from having to comply with blending requirements as part of the Renewable Fuels Standard (RFS) last month. The RFS requires refiners to blend biofuels, such as corn ethanol, into their refined fuels. If they cant or find it too costly, they are required to purchase credits.
The law dates back to 2007 under the George W. Bush administration, and is intended to cut crude oil demand and improve U.S. energy security. It has brought a windfall to corn country, although the environmental benefits have always been suspect.
The oil refining industry hates the law, because it forces them to pay for biofuels or pay for credits in lieu of blending ethanol into their fuel.
(Excerpt) Read more at oilprice.com ...
Hahaha..I did the math!
For openers, the higher cost of buying an electric car paid for my gas for 50 months!
Next, Oil changes...I get free oil changes from dealer for 3 years on my compact car which averages 38 MPG in mixed driving.
Next, My radiator fluid is good for 100,000 miles. No cost!!
Next, convenience... there are a million gas stations in the country. In 7 minutes I fill full tank of gas. Your electric car will take several Hours IF YOU FIND A CHARGING STATION.
Next.. cost of installing a battery charging system at home?? IDK but not free.
Next.. depending on where you live, in some locations cost of electricity is very high. Example, Chicago, CA, NJ, CT etc.
I am not saying everything is positive for one side. But after careful research, I bought a gasoline powered Spark LS for $10.4k brand new with automatic, A/C, Radio, PS, PB, rear camera, and more.
I think they mean ethanol agribusiness.
Tough. Grow food
It’s past time for the corn farmers to be restrained from their windfall profits that ensued from Ethanol, which costs more to produce than gasoline and uses extreme amounts of water.
Ethanol also caused the price of feed for cattle and hogs to rise, due to corn being diverted to produce the inefficient fluid that has ruined so many small gasoline engines.
Therefore, ethanol has also resulted in increased prices for consumers of beef and pork.
KILL ethanol!
IOW, they are being forced into diluting their product so money flows in other directions - that explains why the cheaper to produce non-ethanol "pure gas" costs more than the costlier crap.
I'll trade farming for industrial production all day long.
PS: soybean futures are up. Link here.
I’ll repeat. There is no law mandating fuel ethanol from corn. If making it from cane and sorghum is superior economically, where can one invest?
I have years of experience with fuel ethanol distillation on a commercial level. Trick question: Sorgum/milo feedstock is barely competitive with corn and essentially interchange with it, but is only a secondary feedstock. I am unaware of ny fuel ethanol production in the US using cane. I don’t even think there is any using sugar beets.
Corn is at or below cost of production. Corn acres planted are being reduced this planting season. No ROI for the average producer.
Corn supplies will shrink rather than become cheaper for meat producers because that’s where the market is now.
Don’t forget the black farmers also. They will need handouts.
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