$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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Nov 3 3:59 PM EST

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To: richardred who wrote (2326)	2/24/2007 9:25:57 AM
From: Think4Yourself	Read Replies (2) of 2801

"The USDA projects on-farm corn prices at $3 a bushel in the 2006-07 crop year, rising to $3.75 a bushel by 2009-10." My math skills may not be that great but I am seeing $3 2.7 = $8.1/gallon ($3.752.7 = $10.13 by 2010) JUST to buy the corn to make one gallon of ethanol. Add in the processing costs and a minimal profit margin and it's more like $10 ($12)/gallon. These are the bulk corn futures prices too, not retail. Hmmm, let's see now: Gas, a great fuel from oil: $2.40/gallon, ($4? in 2009) Ethanol, a fair fuel from food: $10/gallon ($12 in 2009) Let's not forget you need 10-15% more ethanol than gas to go the same distance in your new more expensive E85 vehicle. No wonder the ethanol lobby wants to make laws forcing everyone to use ethanol! This is great news for the Middle East as it justifies oil prices in the hundreds of dollars per barrel. Ethanol, a dumb idea being thrust upon us by a moronic government.

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