$100 A Barrel Oil is on the Way

[TennTradition]

Originally Posted by VolinArizona

Here we go sugar cane, here we go!

I think that if the US dropped their tariff on Brazilian sugarcane-derived ethanol, then it would blow corn-derived ethanol out of the water. However, we could probably do better with our own switch grass ... or algae perhaps (happy Okla??...at least I think it was you who always promotes algae).

[myrobbins7]

Originally Posted by VolinArizona

Here we go sugar cane, here we go!

LOL. VIA We need to do something. thats a fact.

[U-T]

Originally Posted by myrobbins7

Turkey's parliament approved a motion today to allow troops to cross into northern Iraq to crush Krudish rebels. Thats not good...

It is only the beginning

[rwemyss]

Originally Posted by TennTradition

I think that if the US dropped their tariff on Brazilian sugarcane-derived ethanol, then it would blow corn-derived ethanol out of the water. However, we could probably do better with our own switch grass ... or algae perhaps (happy Okla??...at least I think it was you who always promotes algae).

Algae FTW!

[myrobbins7]

Originally Posted by U-T

It is only the beginning

I agree. This could turn into something very, very ugly.

[volinbham]

Yep

[VolinArizona]

If Brazil can use FLEX cars for over 20 years, use sugarcane ethanol weirdness for just as long, why in the hell can't we figure something out/

[myrobbins7]

Originally Posted by VolinArizona

If Brazil can use FLEX cars for over 20 years, use sugarcane ethanol weirdness for just as long, why in the hell can't we figure something out/

VIA, I think its because someone (Gov,Oil Comp,OPEC and so on) doesn't want us to, Some folks are getting mega rich off of USA and China alone. JMO.

[volinbham]

We don't grow much sugar cane?

[TennTradition]

Originally Posted by volinbham

We don't grow much sugar cane?

I think that it is a combination of vested interests and the fact that we don't grow much sugar cane. The energy balance doesn't break down well for corn ethanol, so it hasn't just blasted oil out of the water. If massive amounts of sugarcane were cheaply grown here, like Brazil, then there is a much greater chance that we would actually have a different automotive fuel system....but it is hard to say which lobby would be stronger...sugar cane farmers or oil companies.

[VolinArizona]

I'm not saying we have to use sugarcane. However, Brazil has been using sugarcane for decades. Thus, what I'm saying, is that given the decades of research and our own resources domestically - shouldn't we have something better and cheaper than corn?

[TennTradition]

Originally Posted by VolinArizona

I'm not saying we have to use sugarcane. However, Brazil has been using sugarcane for decades. Thus, what I'm saying, is that given the decades of research and our own resources domestically - shouldn't we have something better and cheaper than corn?

I think so. And, there is no doubt that there are a lot of better suggestions out there - they just haven't been funded even remotely as highly as corn and oil prices have only recently gotten to a place where private companies are getting interested (save a brief spell of ramped up investment in the late 70s early 80s).

To be fair, we don't have something that works well and currently grows like weeds, which the Brazilians have in sugar cane. Regardless, the corn and oil lobbies have pretty much made this a two-sided debate. But, I think that we'll see other cellulose-derived ethanol options coming onto the map in the near future....if Congress doesn't screw it up - but, that's a big if. We may have to see it come from the private sector.

Also, just as another disclaimer, corn ethanol can work in special, localized situations where demand/supply is uniquely suited for that use. The problem is that there is no way an effective nation-wide program can be built on the back of corn.

[droski]

Originally Posted by VolinArizona

I'm not saying we have to use sugarcane. However, Brazil has been using sugarcane for decades. Thus, what I'm saying, is that given the decades of research and our own resources domestically - shouldn't we have something better and cheaper than corn?

ethanol from corn is a farm subsidy plain and simple. a viable alternative to oil it ain't. And don't even get me started about how this ethanol bs has affected inflation. This might be the worst idea for alternative energy in the history of the US.

[droski]

Originally Posted by oklavol

i've been recommended to buy oil futures in the spring before the peak oil season as a cant lose proposition. whats the minimum amount for a position you invest though? 10k?

there is no such thing as a can't lose situation in investing PARTICURALLY in the commodities. market. You can easly invest 10K and end up losing 100K in commodities. It's not like a stock where you have limited downside. there are guys that are paid millions a year that have lost billions playing oil futures. current oil futures are projecting a drop in the oil price in the next 3 months btw.

[myrobbins7]

Originally Posted by droski

there is no such thing as a can't lose situation in investing PARTICURALLY in the commodities. market. You can easly invest 10K and end up losing 100K in commodities. It's not like a stock where you have limited downside. there are guys that are paid millions a year that have lost billions playing oil futures. current oil futures are projecting a drop in the oil price in the next 3 months btw.

Droski, I agree. Futures are very very riskey. As far as the projecting futures, ive been hearing that crap for a while, Oil is projecting to drop, the cosumer is going to stop spending blah blah blah. Guess what, that was when oil was at $45 . Theres folks making to much money for it to drop, they who ever they are. wont let it drop I think because to much $$$$. But you are right the futures show a downtick in 3 months, Im just not buying it...Oh and god forbid something happens in the Mid East, which I think is on its way.