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Thursday, November 19, 2015

Ethanol Loses Its Few Friends

Early in his campaign, now top-tier Republican presidential candidate, Ben Carson, supported ethanol—a position for which I called him out. It has long been thought, that to win in Iowa, a candidate must support ethanol.

However, in a major policy reversal, Carson told a national audience during the CNBC GOP debate that he no longer supports subsidies for any industry, including U.S. ethanol producers: “I have studied that issue in great detail and what I’ve concluded, the best policy is to get rid of all government subsidies and get the government out of our lives and let people rise and fall based on how good they are.”

The ethanol industry shot back immediately, saying it receives no government subsidies. But it neglected to mention a very important fact. Instead of subsidies, ethanol producers get something better: a mandate that orders refiners to blend ethanol into motor fuels which forces consumers to buy their product. A federally guaranteed market beats a subsidy every time.

The ethanol industry also benefits indirectly from agriculture programs that support farmers who grow corn for ethanol. And recently, the Obama Administration announced the U.S. Department of Agriculture is offering $100 million in grants to subsidize the installation of blender pumps at gas stations all over the country.

In attempt to push more ethanol into the motor fuel market, the Environmental Protection Agency (EPA) readily admits it plans to “drive growth in renewable fuels by providingappropriate incentives. (Italics added.)”

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6 comments:

  1. Ethanol as a fuel additive has cost more than it's worth in ever aspect: production, delivery, subsidies, diversion from animal feed and harm to engines, among others.

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  2. Well said 12:51...not a thing I could add. Good-bye ethanol!!!!!

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  3. Some deal will be struck at the Obabma level to keep ethanol in production as a fuel additive, despite all of its drawbacks.

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  4. 12:51
    So once you eliminate ethanol what do you plan to use as a replacement oxygenate? MTBE is illegal, so you can't go back to that.

    Are you prepared for the increase in gas prices once ethanol is gone? Oil refiners have been using low grade (84 octane) gas and bringing the octane up to the 87 standard with the 10% ethanol blend. Once you remove the ethanol, the refineries will be forced to reduce percentage of gas that can be refined from a barrel of crude in order to meet the 87 standard. Is it possible the all of the engine problems are the result of the low grade gasoline base?

    Did you know that up until recently, ethanol was cheaper than gasoline on NASDAQ. There is a lot of misinformation out there and you guys are repeating talking points with no facts to support your argument.

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  5. 3:49 But, Fox News said...
    But, NBC said...
    But, CNN said...

    Don't waste your breath on the mouth breathers.

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  6. 3:59 and 4:08 are the real mouth breathers. Ethanol is much less efficient than gasoline. Adding ethanol to gasoline did several things.

    1) Ethanol absorbs moisture causing real problems. Since water and gasoline won't mix, alcohol serves as an emulsifier, but as the emulsion sits, it separates and creates a sludge like substance that clogs carburetor ports on small engines causing fuel system failure. This failure has created millions of dollars in repair bills.

    2) less efficient fuel requires vehicles to use more fuel to travel the same distance. People who owned the same vehicle after the forced implementation of ethanol blended fuel as the did before ethanol was forced upon us noticed a marked decrease in their fuel economy. The big winner is the government. You see gasoline is taxed by the gallon. As vehicles became more fuel efficient, tax revenue decreased. The implementation of ethanol blended fuel made it necessary to buy more fuel to travel the same distance. More fuel purchased equates to more revenue generated, Do we need any further reasons government supports ethanol blends?

    3) Adding ethanol to gasoline lowers the boiling point of fuel. This has caused a phenomenon know as vapor lock in older vehicles and boats. Vapor lock occurs when the fuel actually boils in the fuel lines and carburetors making it impossible to meter the fuel necessary for the engine to run.

    4) Ethanol is a powerful solvent and has been dissolving fuel lines and diaphrams of fuel systems of older vehicles. These repairs also costed Americans millions since its implementation.

    Ethanol blended fuel is an abject failure. The sooner the law requiring its use is repealed, the better off we all will be - except the government. You can expect a mileage tax to be implemented to increase revenue.

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