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Posted 10/31/2015 09:08 (#4868257 - in reply to #4867995)
Subject: RE: 15% is a lot more than 15%



Boone & Crockett - 10/31/2015 06:10

What do I mean by that statement? Renewables were never intended to be the majority of our supply needs, simply a supplement, to the tune of about 15%. Makes a very dramatic difference in price. Create a shortage of any commodity by 15%, and see what happens to the price. Or over supply, for that matter. Our renewable fuels industry has stabilized our nations supply greatly, and has a dramatic stabilizing effect on price. Look at what grain prices did back in the days when we actually had reserves to fall back on. Prices were pretty steady, pretty stable. Renewable fuels provide the same cushion as grain reserves did 35 years ago. That's why big oil hates ethanol so much, because the 10-15 percent they add to the supply chain probably reduces what Big oil could charge by 30-40%.



Boone, Boone, Boone...... We added stability.....that's what we did?

The arrow indicates implementation of RFS in 2006.

And I sure as heck don't see cheap gasoline right now.  We have crude trading in the mid 40's and gasoline around me is still 2.20 to 2.40.  We should be down around 1.70-1.90 with crude prices that low.

And if renewables provide that cushion...then were is the spike in crude prices in 2012 when we couldn't grow that cushion?

I just don't see any evidence of what you believe.  Stability in the oil markets is a direct result of increased oil production both worldwide and domestically.  It has had nothing at all to do with corn or ethanol IMO.

Corn based ethanol should embrace the role of fuel additive, that is a role that makes sense in both the short and long term.  Cellulosic ethanol is never going anywhere, its too destructive to the environment and land on the production side and there is no by-product like DDG's that helps it remain cost effective.  You can't remove that much organic material from your land year after year and replace all those nutrients lost and have nothing to show for it but exhaust smoke.

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