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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (380411)4/25/2008 5:49:07 PM
From: Road Walker  Respond to of 1579114
 
Well, right, but Tench's whole point was that the article said that the ethanol would be a dollar a gallon...

To produce. It costs ~$10 a barrel to get oil out of the ground in the ME. But what do the wars to control the ground cost?



To: SilentZ who wrote (380411)4/25/2008 6:16:23 PM
From: Tenchusatsu  Respond to of 1579114
 
Z, > the ethanol would be a dollar a gallon...

Like JF pointed out, that's the production cost.

Now let's do the math. To recoup a $25M investment over 50 years, producing 40,000 gallons of ethanol a year, you would have to sell the ethanol at a profit of $12.50/gallon, or an ASP of $13.50/gallon.

That's far above the cost of gas these days, even if you factor in the cost of fighting in the Middle East, etc.

Tenchusatsu


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