Monday, March 12, 2007


..........will ethanol make the difference for America?
The question is not "will ethanol make a difference", it actually already has made a difference. President Bush's recent visit to Brazil has drawn more attention to the use of ethanol to power our vehicles here in the U.S. Brazil uses 100% ethanol in their vehicles! Many Americans have screamed, "why can't we do that - we can grow corn better than anyone in the world"! Brazil doesn't even come close to using the amount of fuel for vehicles that we do here in the U.S.; but, we are trying to make a difference here in America by adopting the ethanol technology for our own use. In 2006 we produced between 4-5 billion gallons of ethanol in the U.S. Ethanol production created 153,725 new jobs, and boosted the U.S. economy by 5.7 billion dollars. Last year, we used 12% of our corn crop for ethanol production and cut the nation's consumption of gas by 2.8%. That doesn't sound like a big hit on our consuption; but, we have to understand that 2.8% means millions of gallons of oil that we didn't have to import. Ethanol production is very economical when corn prices are low. In true American fashion, we shoot ourselves in the foot when we allow the price of corn to go from $2/bushel at the beginning of 2006 to $4/bushel by year's end - the reason for the increase - ethanol manufacturing demand. We just can't help ourselves out and be satisfied with a decent profit - we have to allow greed and quick money steer our markets. We still eat and feed our cattle most of the corn produced in America. With every 4 billion gallons of ethanol produced, we are able to import 47 million less barrels of oil each year!!!! Wow, what a difference a little corn liquor makes! It almost makes an average person like myself question why those gas prices keep going up??? Sure, it's the oil companies importing less and selling for more. Ethanol in Brazil is 100% pure stuff. Here in the U.S, we use E85. That means that 85% of the ethanol mixture you put into your tank is grain alcohol, but enriched with 15% gasoline. Is E85 available everywhere? No, it is not. In fact, it is pretty hard to find in many areas of the U.S. There are currently 113 ethanol producing plants in the U.S., with another 78 presently being built. Hopefully, ethanol will be easier to find in the near future. Ethanol has several positive benefits. Ethanol helps absorb moisture in a fuel system and helps prevent frozen fuel lines. It increases the octane rating of gasoline, which makes it actually burn a little cooler. Ethanol dramatically redues carbon monoxide tailpipe emissions. Those tailpipe emissions are responsible for about 20% of the smog created in the U.S. each year. There are a couple of bad things about ethanol. You can't pump it through a pipeline and it does reduce gas mileage an average of 2% in fuel injected vehicles. The other bad thing about ethanol use in America right now is the fact that we import almost as much as we make. That makes us dependant on someone else for the product. We import this ethanol from Brazil - currently our "good buddy". Didn't the same thing happen with the Middle East? Good friends in the beginning - bitter enemies in the end. That's our way of doing things. Will we ever learn? Not likely. And how about those oil companies? They are still sticking us with the gas prices to counteract the ethanol production and will continue to do so. As stated before, with the increase in demand for corn from the ethanol producers, corn has doubled in price in one year alone! That increase is going to show up in your corn flakes, etc. Our desire to make a quick buck in Big Business America will still keep the little guy down. Alternatives for less dependence on foreign oil has been there for years and years. Big business has kept its use limited to us and will continue to do so. A gallon of Regular gas today here in northwestern N.C is $2.58/gallon, and is quickly on the rise for the upcoming Easter holiday!!! It's frustrating to an average, hard working, middle class American like myself. The Dark Side of the Force will continue to reign on fuel prices!!!

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