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Republican think tank calls for ethanol mandate repeal

http://www.heritage.org/research/reports/2013/06/the-ethanol-mandate-dont-mend-it-end-it

 

Isn't going to happen, just having some fun with you boys.

 

Isn't going to happen because whomever wants to be king next will have to go through Ioway first.

 

Does make it seem likely that E-15 is a no go and maybe that's actually the point of whomever funds these sorts of "objective analyses." It is probably no more or less objective than some of the stuff that the RFA funds.

 

Anyway, I'm thinking that E-85 can do the job anyway.  If wholesale gasoline stays at $3/gal and corn goes to $3/bu (sub $1.50 etoh) the E-85 pump will be plenty busy.

 

 

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Re: Republican think tank calls for ethanol mandate repeal

As to the hypothetical price relationship that I mentioned, that is actually the way it should have been written in the first place- with greater market elasticity at the outer bound. If you've got corn to burn, let it burn.

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Re: Republican think tank calls for ethanol mandate repeal

Also I could see that scenario delivering much better margins for the e-plants assuming they aren't already heavily hedged.

 

That would make it a whole lot like farmer grain marketing- you gotta take a position, can't make money staying perfectly hedged- which, despite what all the armchair quarterbacks say, ain't easy.

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Honored Advisor

Re: Republican think tank calls for ethanol mandate repeal

I value my 30.06 more than I value $7 corn, therefore I`m a Republican  Smiley Happy     Wait, we no longer have $7 corn even with the RFS....whew!  At least I still have my 30.06 thanks to the Republican congress Smiley Happy

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Re: Republican think tank calls for ethanol mandate repeal

And I'm supposed to have discussion on energy policy with somebody who thinks that Nancy is coming to take his hunting rifle?

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Re: Republican think tank calls for ethanol mandate repeal

Now if we were talking about your banana clip for your AR we might be getting somewhere.

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Senior Contributor

Re: Republican think tank calls for ethanol mandate repeal

An hour with a dremel can really turn that AR into a fun topic too!
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Re: Republican think tank calls for ethanol mandate repeal

That's what they say although so far I've been able to hold out against the raccoons and groundhogs with my trusty old 12 pump and .22.

 

They are getting craftier, though, and I hear possibly more heavily armed.

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Senior Advisor

Re: Republican think tank calls for ethanol mandate repeal

Heritage Foundation/think tank an oxymoron?

 

It's interesting that the test results used were from the petroleum industry, not an impartial test. And further, that the engines in question were run on E-20 first and THEN E-15 !!!!!!

 

I mean - SERIOUSLY !!!!!!!!

 

Why not critique the government tests ??????

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Re: Republican think tank calls for ethanol mandate repeal

Yeah, pretty clearly a hatchet job for hire but there's a lot of that going around- some of RFA's stuff has been relatively cringeworthy as well (i.e. the oft cited talking point about e saving drivers $1/gallon).

 

There ought to be some price to be paid for the grain ethanol lobby having hitched its wagon to the cellulosic thing which has been an utter disaster and a lot worse than Solyndra-although you won't hear that on Fox.

 

Without cellulosic or massive imports we can't do e-15 anytime soon anyhow.

 

Might as well just stick with 10% and whatever gets wildcatted beyond when price dictates. 

 

The downward trend in gasoline usage looks to be well established and that's not a bad thing in and of itself although it probably indicates a punkier underlying economy than shills would suggest.

 

What we actually should be doing is turning some of that excess natgas into methanol and blending it in with the etoh and gasoline. But therein lies the problem- once the government creates "an industry" in this case the grain ethanol industry, it will want to defend itself at the expense of opportunities that changing circumstances provide- even though it wouldn't directly threaten the existing space, just compete for the larger share that they want.

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