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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 34.28-0.1%9:51 AM EST
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To: robert b furman who wrote (1029)4/13/2006 11:28:33 PM
From: Patrick Slevin  Read Replies (2) of 2801
 
But Rail/Truck routes,

isn't that going to drive the cost (to the Eastern user) significantly higher, perhaps prohibitively higher.

That's what I think my question was. It isn't the question of it's value to the end user....and to oil problems in general....but the question of shipping it.

I once read that Russian oil.....matter of fact Luko, or whatever the spelling is on that Russian firm that bought the Getty stations....

Russian crude is less expensive than OPEC crude. However, the ports aren't dredged to allow tankers to take on the crude from Russian production so it has to be shipped by rail. This mode of transport.....from what I've read at least....drives the cost of Russian crude higher than OPEC crude.

In the States, Luko/Getty uses oil that they buy on the open market, rather than their own.

So because there aren't pipelines, isn't it likely that this product.....E85....will be priced so much higher in the East that it won't be feasible?

Alternatively, tariffs would have to be lowered. Doing this would have Mid-Western Congressmen fighting tooth and nail to protect the U.S. Industry.

Am I wrong in any of these presumptions?
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