If Ethanol is going to survive and thrive as it should it needs to stop depending on the Fed to mandate its usage. And if they can't do that themselves then the market deserves to die.
To say that Ethanol must compete on it's own.. vs an Oligopolistic Crude Oil market whos major players LEAD the List of the LARGEST companies in the WORLD.. who they themselves pale vs some of the National backed Oil Companies.. Exxon is huge.. but a piker vs Saudi Aramco.. who's Political might is the BACKBONE of OPEC which is an organization which has brought the economies of the FREE WORLD to their knees..
.. the Crude Oil spikes in the 1970's..
.. the Crude Oil spikes in 2005 (more weather and demand related) but also early 2008 with OPEC..
So if ethanol dies... it will not be because of it's "business model." but of the LACK of SUPPORT which it's competitor.. Crude Oil recieves.
The US has sent Treasure and Armies to Protect Crude Oil supplies.. the 5th fleet is currently stationed in Bahrain in order to keep Crude Oil flowing..
but when you refuel at the pump.. you do not have to pay for THAT thanks to the US Taxpayer.
So it's fine to be all Capitalistic about the situation.. but as long as we're doing that.. then we must assign the total costs to each business model.
We've spendt TRILLIONS propping up Crude Oil with our military spending.
To deny that is not being honest. |