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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 39.07+2.0%Jan 9 9:30 AM EST
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To: richardred who wrote (1015)4/12/2006 1:10:39 PM
From: robert b furman  Read Replies (1) of 2801
 
Hi Richardred,

Question for the thread.

Is MTBE a derivative of oil?

If so, would not the now 8 year level of crude inventories PLUS the current (and what appears to be growing ethanol additive not coming from an oil derivative) give us a sufficient supply if not over supply.

If gasoline demand is expected to grow 1 1/2 percent this year will not the ethanol growth plus more oil for gas vs mtbe result in a supply that equals or exceeds demand.

Not to mention the demand destruction of $2.60 - $3.00 dollar a gallon gas.

Bob

TIA
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