Ethanol Issues

The Billings Gazette today run quite a few articles about the ethanol industry that were quite interesting and deserve further comment. As any one who regularly reads this knows I oppose the law that would make ethanol in our fuel mandatory. <acronym title="<a href="http://governor.mt.gov/governor/govbio.asp">Gov. Brian Schweitzer</a>">The Second Coming</acronym> and his disciples think that it is going to be the economic revival of the state if they can force us all to buy gas with ethanol in it.<br />n<br />nFirst off the oil refiners <a href="http://www.billingsgazette.com//index.php?id=1&display=rednews/2005/03/20/build/business/30-blending-ethanol.inc" target="_new">chime in</a> with their opinion. It is not real surprising that they oppose it but some of the comments are very illuminating. <br />n<br />nI have always asked the question, "If ethanol is such a great thing why does it take a government mandate and subsidies to build a plant here? Why isn't the money available through the banks or private financiers?" Then from the article:<br />n<br />n<blockquote>Bruce Brodie, manger of the ExxonMobil refinery in Lockwood, said the company does not oppose the use of ethanol blended fuels and in various cities where it is required to reduce pollution, it is provided. <br />n<br />n"The company is absolutely opposed to mandates because they upset the free market mechanism and increase costs for consumers," he said. <br />n<br />nBrodie said petroleum industry data for a three year period for Missoula, which requires the fuel during the winter months, show that, on average, consumers paid 3 cents a gallon more for the ethanol blend.<br />n<br />nHe also questioned whether ethanol plants are economically viable without heavy subsidization. <br />n<br />n"If they were, banks would be loaning them money now," he said.</blockquote><br />n<br />nMy same questions and also points out that this mandate will cost us as consumers more in the long run which I've always said too. Isn't gas prices high enough with out tacking on more expense? When taking about this issue recently I have also pointed out that since corn is so much cheaper than wheat to make ethanol, instead of building plants here companies will just bring ethanol in from the corn producing states to supply our need. Case in point: <a class="block_level" href="http://www.sarpysam.com/archives/831-Ethanol-Issues.html#extended">Continue reading "Ethanol Issues"</a>