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sdholloway56
Senior Advisor

"a boondoggle piggybacking on a boondoggle"

Carbon Pipelines in the Hawkeye State | naked capitalism

I won't go that far since any criticism of ethanol policy lights peoples' hair on fire.

But this is sorta nuts. You gotta give it to the lobbyists from The Blob- they want to keep things going forward, ever onward- and get permanently wired into the system. Good politics though, because beyond corn state politics you have the NG industry (N takes a chunk), the conventional N producers etc. The Blob.

I'll also not entirely embrace the assertion that ethanol isn't somewhat better than oil in terms of carbon but I really don't trust any of the life cycle analyses- it seems to depend highly on who funded it and they're all over the place. Let's just agree that ethanol is a bit better, but not a solution. 

I think ethanol should remain at or near 15b/g/y well into the future. But it would be much better to just require that in return for holding a steady volume as fuel consumption drops (the fleet will be able to handle that easily), just require that the industry cuts 3% off its footprint every year. That would be fairly easy initially-  E-plants have land around them and could begin to substitute cheap renewble electricity for natural gas. Beyond that it will take green N, which is technically well within grasp out in a 10 year horizon. If you don't want to finish off the gouging bastards in the conventional N game because you're frightened of "change" then you don't have a hair on your *****.

The good news in the N production assets all being pried away from the cooperatives is that you no longer have any skin in that game. But they are gouging the hell out of you.

 

 

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15 Replies
sdholloway56
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

Also always amused by the severe whiplash required in the pivot from "property rights" to the need for eminent domain for pipelines.

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BA Deere
Honored Advisor

Re: "a boondoggle piggybacking on a boondoggle"

The EPA cut it`s own throat in the 1970s with regulation on domestic fertilizer production.   If fertilizer is such a money making scheme, why aren`t more getting in on it?  It`s like much of US industries off shored to avoid the environmental costs and labor costs.  How much of a $1200 ton of NH3 is it to meet OSHA and EPA regs?

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k-289
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

OFF  SHORE , has  me  asking  why  a  Turbo  Charger   made  in  China , sells  for  $400.  on  line ,  or  $1800  from  dealer ,  a  boondoggle piggyback ,  or  old  fashion  price gouging  -  maybe ? 

Off  shore  pricing  excuses ,  although  one  of  the  on-line  suppliers responded ,  how  many  do  you  want , while  the  dealer  said  supplies  are  tight - hmmmm - ?    Vedy  Interesting ,  laugh  in quote - Arte Johnson   -  ???????? 

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BA Deere
Honored Advisor

Re: "a boondoggle piggybacking on a boondoggle"

In China the wage is $5,50, Mexico $4.50, Vietnam $2.70 and the US average factory wage is $24/hr.  So, that`s part of the story, the environmental regulations, the workman`s comp insurance (thank God for that), other US benefits that`s all extra the overseas foreign workers don`t have.    The US made turbo is better quality, but when (and I`m guilty of it too) the parts guy says "well, the US one is $1800 and the China one is $400 and we have that in stock"  and I have a vehicle with 700,000 miles on it and a leaky main seal ...patriotism be damned, I`m gonna put the cheapest turbo available on the rig. 

See, the biggest US export the last few years has been "it`s inflation".    Dollar General and Auto Zone have been doing quite well, as of late.

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sdholloway56
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

Nitrogen margins have been enormous and are now gargantuan. P and K are a function of relative costs around the world. There are better, cheaper deposits for K in Canada and Russia, P in Morocco.

"Regulation" has been their phony excuse.

 

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sdholloway56
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

As far as inflation goes, yes, $6 corn is "inflationary" although it has nothing much to do with either fiscal or monetary policy. But those dang expensive turkeys at Thanksgiving darn near sunk pore working Americans.

To my point- I think "agriculture" can do fine aligned with future reality.

Or it can go with The Blob.

Just remember that The Blob regards you as junior members, as it did when it cut blending requirements under the Koch EPA guys. They'll cut your throats if there's a dime in it and they can.

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rickgthf
Senior Advisor

Re: With regards to carbon capture pipelines, that carbon, .....

 ... or should I say, carbon dioxide will turn out to be a convenient, low-cost raw material (chemical feedstock).  A little electrochemistry and cheap wind turbine electricity and you can everything from building materials to liquid fuel.

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k-289
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

The  only  one  available ( turbocharger )  is  made  in  China ,   exclusively  ,  the  markup  is  strictly,   domestic ,  AND  so  the  excuse  is  ?   ?   ? 

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sdholloway56
Senior Advisor

Re: "a boondoggle piggybacking on a boondoggle"

US corporate profits a record last quarter.

Net Farm Income not quite a record bout close, best since ‘14.