Reuters (“Ethanol boom may stifle U.S. gasoline demand,” 2.14.08).

[JohnWxy]

http://www.ethanolrfa.org/objects/documents/1524/ethanol_replacing_gasoline_demand_2.14.08.pdf


According to Reuters, “explosive production is stifling an established driver of oil
markets U.S. gasoline demand and could lead to lower prices at the pump.”

The article notes that ethanol production in 2007, which the Renewable Fuels Association
estimates to have been 6.5 billion gallons, is up 130,000 barrels per day according to the Energy
Information Administration. That is equivalent to the amount of gasoline a mediumsized
oil refinery produces. Through November 2007, the latest date available, ethanol production was
averaging 417,000 barrels per day or 17.5 million gallons per day – the equivalent of THREE mediumsized oil refineries.


In an interview for the article, Eric Wittenauer of AG Edwards in St. Louis stated, “‘Ethanol
blending could help ease U.S. refining bottlenecks and that could be ultimately reflected in lower
prices at the pump.’”

Equally important as reducing prices at the pump is ethanol’s role in reducing oil and gasoline
imports. According to the outlook of Valero, the nation’s largest oil refiner, the “company
foresees ethanol growth ‘offsetting gasoline imports to the U.S.’”

The entire Reuters article, written by Timothy Gardner and Rebekah Kebede
gasoline, can be viewed at http://www.reuters.com/article/reutersEdge/idUSN1349602720080214?sp=true.|Reuters.com]

[DJ13]

1. What a bargain

.20c less at the pumps with a corresponding doubling in food prices as a result of crop production migrating from the food market to the ethanol market.

[JohnWxy]

2. The price of oil/gasoline is just getting started. In the next few years you will be crying for

you will be crying for gasoline at $3 plus.

Doubling of food prices? Care to document that?

[NickB79]

4. A lot of doubling documented here

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x136499#136503

[Fledermaus]

6. Make you own argument Nick and stop using other people as a crutch

[NickB79]

7. Linking to another discussion is now a crutch?

Please.

Instead of attacking me and my use of a "crutch", debate the article I referred to.

Or is it easier to do ad-hominem attacks than address the actual food price increases I linked to?

[Fledermaus]

8. No, you bring your information here and make your own argument

Referring to another tread is lazy and looks like quackery

[NickB79]

12. So, I take it you're just ignoring the article then?

The very one that documents the rapidly rising costs of foodstuffs?

Why am I not surprised.

[Nihil]

13. That's quite funny coming from a sock-puppet! (n/t)

:rofl:

[Tandalayo_Scheisskopf]

9. Well...

That was rude. Welcome to DU. Or something.

[DJ13]

5. Doubling of food prices? Care to document that?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x342013
Crunch Time on the Bread Line - Democratic Underground

[JohnWxy]

14. Wheat prices doubled because of bad weather (rain ) the last couple

years and increasing demand.

http://www.thekansan.com/stories/030308/topstories_20080303028.shtml

"Locally, the late freeze last April caused numerous producers to lose much of their wheat crops. Then wet weather prohibited some agricultural work later in the season."



Sorry so slow answering but I dont' get much time for this.

Corn prices have definitely gone up due to ethanol demand. I hope this is temporary until more farmers go into corn.

NOte that a couple of years ago Bush signed a bill to allow the payment of export subsidies for cotton farmers (mostly large corporations). We paid $4 Billion in export subsidies to make our cotton competitive on the world market. Cotton growers in other nations filed a complaint withe the WTO and WTO rule AGAINST the U.S. and told us to stop such practice. Bush signed bill anyway.



http://www.inmotionmagazine.com/opin/devsh_hk.html

For the 20,000 cotton growers in America, it will be business as usual. In 2004, U.S. cotton farmers got federal support to the tune of $ 4 billion, which means $ 10.1 million a day. In 2005, UN Human Development Report 2005 states the cotton growers were paid an additional $ 700 million thereby jacking up the total subsidy to reach a staggering figure of $ 4.7 billion. It is this huge subsidy support, much of it considered non-trade distorting that actually causes the global prices to slump. Indian cotton growers or for that matter cotton farmers in western Africa are thereby priced out of the international market.
-------------------------------------------------------------------------------------------------------

NOw, the acres devoted to growing cotton are roughly equal to the acres devoted to growing feed lot corn (at least as of 2006) (not the same as sweet corn for human consumption). This means if we were not spending money supporting domestic cotton growers they would lose money growing cotton and switch to some other crop. Much (not all) of the acreage growing cotton (a non-food crop by the way) could be used to grow corn (at least feed lot corn) and increase supply of corn without reducing acreage of a food crop. If they all went to corn that would mean almost a doubling (of the acres in corn for ethanol in 2006) without impacting any food crop.

INteresting.

Also, please note that only the starch content of the corn is used to make ethanol. the protein is recovered and sold to cattle farmers as a high grade (better than corn) feed supplement. ... that is no loss to the food chain in the making of ethanol.

[losthills]

3. Is this from The Onion?

[Historic NY]

10. Thats some fairy tale...we couldn't grow ourselves out of ........

the energy crisis in the 70's and were not going to do it now. The price of all food products,including milk,bread,cheese, etc. is at all time record prices. We couldn't possibly plant enough corn to make a significant difference. We need to explore less intensive methods, garbage, grass, etc. to produce ethanol. Check the Cornell studies.

[hunter]

11. Well look at that! Given a choice between gasoline or food, people buy food.

Who would have guessed?