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Politics : Politics for Pros- moderated
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To: Bearcatbob who wrote (164649)4/27/2006 8:30:35 AM
From: kech  Read Replies (1) of 794024
 
Interesting. It is clear that ethanol takes a subsidy when oil is at $30 a barrel. At $75 it does not. Also what is interesting is that the subsidies for corn are price supports so they would disappear if the price of corn increases above some minimum levels. I hear that ethanol producers putting up new plants now have a payback as early as two years given the high price of gas. It will be interesting to see what happens in the next couple of years just from market forces alone. As the cellulose methods for ethanol kick in, it should make ethanol viable even if oil prices fall a lot. But in the meantime, the system investments in E85 distribution could become viable and diffused quickly with the high incentives that exist today.
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