$2 or higher gas - Can ethanol make a comeback? Message Board

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Non-Tech : $2 or higher gas - Can ethanol make a comeback?

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Dec 26 9:30 AM EST

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To: elmatador who wrote (207)	1/1/2005 8:00:19 AM
From: Seeker of Truth	Read Replies (1) of 2801

The article says 40% of Brazilian cars run on 100% ethanol. According to the more reliable reports directly from you, El M, ethanol is making a comeback now in Brazil, but the only really popular solution, i.e. a car that can switch between gasoline and ethanol, has just been introduced by Volkswagen. As I remember your numbers, an oil price of $48 a barrel guarantees that ethanol will be cheaper but as the oil price goes down from there the economic advantage of ethanol shrinks, after a while to zero. IF oil descends to $35, as Taikun thinks, then unsubsidized ethanol couldn't sell. In the non-tropical US ethanol is more expensive than in Brazil. And BTW, countries like Japan which produce no oil are also still buying most of their energy sources from OPEC.

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