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Drought and the Second Ethanol Crash

OilPrice.com -- When gas prices plummeted during the recession and at least half of US ethanol producers went bankrupt in the 2008-2009 ethanol crash, ethanol production continued to increase. But ethanol will crash again in the face of a summer drought, and this time the crash will be more definitive.

The difference this time around is that the ethanol will not crash because of product value, but because of under-supply of feedstock, like corn.

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Submitted Aug 16, 2012 By: NOTSOGRN

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Night Owl Champion Author Toronto Posts:7,545 Points:1,785,625 Joined:Jul 2004	Message Posted: Aug 16, 2012 7:23:02 PM Ignore Night Owl Report Abuse Just get rid of that ethanol crap.
07skydriver Champion Author Ohio Posts:3,251 Points:981,300 Joined:Feb 2009	Message Posted: Aug 16, 2012 7:04:21 PM Ignore 07skydriver Report Abuse Stupid Dubya.
jimgraham Champion Author Akron Posts:10,367 Points:1,978,985 Joined:Oct 2007	Message Posted: Aug 16, 2012 1:19:48 PM Ignore jimgraham Report Abuse In a real free market, products must stand on their own or fail - ethanol in gasoline is a BIG fail - but Uncle Sam makes it a winner at our expense. Give me E0.
WalkingWV Champion Author West Virginia Posts:3,701 Points:778,845 Joined:May 2008	Message Posted: Aug 16, 2012 11:25:29 AM Ignore WalkingWV Report Abuse Just ban ethanol. Why add something to gas that decreases mileage, and then mandate higher mpg from the manufacturers?
leraar2 Champion Author Massachusetts Posts:3,759 Points:786,705 Joined:Mar 2011	Message Posted: Aug 16, 2012 10:13:53 AM Ignore leraar2 Report Abuse wonderful news. bring back PURE gasoline.
NukeAtComEd All-Star Author Milwaukee Posts:725 Points:338,520 Joined:Jan 2011	Message Posted: Aug 16, 2012 9:53:33 AM Ignore NukeAtComEd Report Abuse LOL - where else can a company stop production when it has a guarenteed market and with the price of gasoline going up, the corn prices going up and the amount of support given by the Feds and States, the compnay can't charge enough - Did the original GM/Chrysler executives start running this company?
MontanaMac Champion Author Washington Posts:1,736 Points:410,050 Joined:May 2011	Message Posted: Aug 16, 2012 8:40:58 AM Ignore MontanaMac Report Abuse End the ethanol program now.
ZeroBoxes Champion Author Mississippi Posts:1,069 Points:211,390 Joined:Apr 2012	Message Posted: Aug 16, 2012 8:40:32 AM Ignore ZeroBoxes Report Abuse C A U T I O N: WHA educated civil servants at work.
crep1291 Champion Author Ottawa Posts:2,576 Points:480,635 Joined:Dec 2010	Message Posted: Aug 16, 2012 8:36:20 AM Ignore crep1291 Report Abuse There's no magic bullet. Whatever the government does, there will be pain.
scu227 Champion Author New Haven Posts:4,146 Points:770,905 Joined:Feb 2011	Message Posted: Aug 16, 2012 7:56:31 AM Ignore scu227 Report Abuse Corn should be used for food not fuel.
bluestang96 Veteran Author Ohio Posts:268 Points:107,865 Joined:Mar 2012	Message Posted: Aug 16, 2012 7:53:48 AM Ignore bluestang96 Report Abuse Ethanol has too many negatives to justify its use as a fuel.
blupupher Champion Author Houston Posts:3,545 Points:747,070 Joined:Feb 2011	Message Posted: Aug 16, 2012 7:41:15 AM Ignore blupupher Report Abuse it just needs to go
sljbc475 Champion Author Tucson Posts:4,210 Points:870,425 Joined:Dec 2010	Message Posted: Aug 16, 2012 7:36:12 AM Ignore sljbc475 Report Abuse Put ethanol out of business.
Agarre Champion Author Richmond Posts:1,335 Points:263,785 Joined:Feb 2012	Message Posted: Aug 16, 2012 7:22:57 AM Ignore Agarre Report Abuse so ?
Martinman Champion Author Mississippi Posts:14,734 Points:2,092,855 Joined:Sep 2005	Message Posted: Aug 16, 2012 7:16:52 AM Ignore Martinman Report Abuse The problem is Congress is so gridlocked in playing its game of partisan politics, that nothing will get done. Then you will have each party blaming the other, and one party using it as a wedge-issue for against the White House that can't really do anything. What should happen, is to establish a review system where the requirements can be waived anytime crop production levels drop below some predetermined level - similar to what Brazil does for its sugar cane ethanol industry. This is on Congress' shoulders. Then there is the problem with massive grain purchases by China of corn, wheat, and soybeans - as that is what has been driving crop commodity prices as a result of speculators moving into this sector of commodities trading... [Edited by: Martinman at 8/16/2012 8:20:29 AM EST]
Sparky19038 Champion Author Philadelphia Posts:2,038 Points:578,190 Joined:Jul 2011	Message Posted: Aug 16, 2012 7:12:25 AM Ignore Sparky19038 Report Abuse @goldseeker re:"A lot of fiction in this article."Defend that declaration with some facts.
Sparky19038 Champion Author Philadelphia Posts:2,038 Points:578,190 Joined:Jul 2011	Message Posted: Aug 16, 2012 7:10:30 AM Ignore Sparky19038 Report Abuse [Rant Mode On] Especially during a drought, when prices increase due to crop failures decreasing available supply, WE SHOULD NOT BE BURNING FOOD IN CAR ENGINES. [Rant Mode Off]
werich44 Champion Author California Posts:1,852 Points:467,980 Joined:Jun 2011	Message Posted: Aug 16, 2012 5:56:39 AM Ignore werich44 Report Abuse Ethanol is the last thing this country needs.
gfox4810 Champion Author Kalamazoo Posts:1,181 Points:394,775 Joined:Jul 2011	Message Posted: Aug 16, 2012 5:52:26 AM Ignore gfox4810 Report Abuse "but because of under-supply of feedstock, like corn" "Feedstock" is food not fuel!
ktyson13 Champion Author Maryland Posts:1,541 Points:395,575 Joined:Aug 2010	Message Posted: Aug 16, 2012 5:49:32 AM Ignore ktyson13 Report Abuse let's put the bastards out of business and get rid of ethanol.
dandvicb Champion Author Bridgeport Posts:1,227 Points:1,075,980 Joined:Jul 2004	Message Posted: Aug 16, 2012 5:31:18 AM Ignore dandvicb Report Abuse ok
MeiThink Veteran Author Mississippi Posts:356 Points:66,065 Joined:Oct 2010	Message Posted: Aug 16, 2012 5:24:53 AM Ignore MeiThink Report Abuse I agree with 'George0446': "Stop the ethanol subsidies and mandates. The EPA is an out of control agency. Cut their funding."
Luckylindy Champion Author Milwaukee Posts:4,509 Points:1,126,095 Joined:May 2008	Message Posted: Aug 16, 2012 4:24:57 AM Ignore Luckylindy Report Abuse Crash and burn.
George0446 Veteran Author Massachusetts Posts:498 Points:230,185 Joined:Apr 2012	Message Posted: Aug 16, 2012 4:09:53 AM Ignore George0446 Report Abuse Stop the ethanol subsidies and mandates. The EPA is an out of control agency. Cut their funding.
StArrow68 Champion Author Oakland Posts:3,249 Points:1,359,455 Joined:Apr 2003	Message Posted: Aug 16, 2012 4:09:20 AM Ignore StArrow68 Report Abuse What fiction? Great review of basic issues. Now why do I have very little confidence that anything rational will get done in a timely manner?
bisonjim Champion Author Florida Posts:1,050 Points:205,255 Joined:May 2012	Message Posted: Aug 16, 2012 3:37:48 AM Ignore bisonjim Report Abuse No more ethanol
molebaby96 Champion Author Tallahassee Posts:2,121 Points:504,415 Joined:Nov 2011	Message Posted: Aug 16, 2012 3:18:25 AM Ignore molebaby96 Report Abuse Stop forcing ethanol use in gas.
OHMS Champion Author Orange County Posts:13,712 Points:1,690,905 Joined:May 2005	Message Posted: Aug 16, 2012 2:30:23 AM Ignore OHMS Report Abuse science friction
LostToo Champion Author Illinois Posts:4,392 Points:975,315 Joined:May 2009	Message Posted: Aug 16, 2012 2:14:44 AM Ignore LostToo Report Abuse At what point in the chain do they add the ethanol? In the big storage tanks at the refinery. When filling the trucks that hall the stuff. Or when the tuck dumps it's load at the stations. Well whenever they add the ethanol. Now they won't have to.
goldseeker Champion Author West Virginia Posts:19,537 Points:2,717,840 Joined:Sep 2005	Message Posted: Aug 16, 2012 1:48:33 AM Ignore goldseeker Report Abuse A lot of fiction in this article.
gasmack Champion Author Ventura Posts:1,705 Points:666,550 Joined:Feb 2011	Message Posted: Aug 16, 2012 1:48:13 AM Ignore gasmack Report Abuse Kill ethanol produced from corn!
Happytalk Champion Author Pennsylvania Posts:2,130 Points:576,140 Joined:May 2010	Message Posted: Aug 16, 2012 1:38:18 AM Ignore Happytalk Report Abuse get rid of ethanol
MikeCapeCoral Champion Author Cape Coral Posts:1,927 Points:418,870 Joined:Feb 2012	Message Posted: Aug 16, 2012 1:35:55 AM Ignore MikeCapeCoral Report Abuse I will be sorry to see any business not do well. But, this one needs to go away because of changes in regulations. Don't take food off my table to run a car!
kitty1750 Champion Author Kitchener-Waterloo Posts:2,199 Points:470,675 Joined:Jun 2011	Message Posted: Aug 16, 2012 1:32:50 AM Ignore kitty1750 Report Abuse Corn chowder's not meant for gas tanks.
Buddy2264 Champion Author Tampa Posts:11,649 Points:2,358,995 Joined:Oct 2005	Message Posted: Aug 16, 2012 1:31:51 AM Ignore Buddy2264 Report Abuse Alas it cannot all come from corn, now we should see that. The corn lobbyists and congress got us into this mess, time to diversify to other products for ethanol, like potatoes and sugar cane.
Retowered Champion Author Colorado Posts:8,572 Points:2,684,440 Joined:May 2004	Message Posted: Aug 16, 2012 1:27:37 AM Ignore Retowered Report Abuse Do away with Ethanol.
megadiesellv Champion Author Atlanta Posts:1,474 Points:503,585 Joined:Sep 2011	Message Posted: Aug 16, 2012 1:23:33 AM Ignore megadiesellv Report Abuse Stop burning fuel.
Dragnet Champion Author Arizona Posts:15,401 Points:2,907,785 Joined:Jul 2004	Message Posted: Aug 16, 2012 1:18:20 AM Ignore Dragnet Report Abuse Corn is eaten and makes good drink not fuel
Tigercat88 Champion Author North Carolina Posts:3,192 Points:615,890 Joined:Jul 2011	Message Posted: Aug 16, 2012 1:16:32 AM Ignore Tigercat88 Report Abuse Corn belongs as FOOD!!!!!!!
vulcan96 Champion Author Ohio Posts:26,896 Points:3,102,700 Joined:Aug 2004	Message Posted: Aug 16, 2012 1:16:15 AM Ignore vulcan96 Report Abuse dump ethanol and dumbo and the puppet masters.....
danreino Champion Author Twin Cities Posts:8,343 Points:1,538,780 Joined:Mar 2008	Message Posted: Aug 16, 2012 1:09:39 AM Ignore danreino Report Abuse Subsidized industries need to shet their pants, stat.
bobdec Champion Author Miami Posts:8,959 Points:1,768,845 Joined:May 2008	Message Posted: Aug 16, 2012 1:09:11 AM Ignore bobdec Report Abuse Time to dump ethanol
ican2step Champion Author Pittsburgh Posts:1,676 Points:426,425 Joined:Feb 2012	Message Posted: Aug 16, 2012 1:07:27 AM Ignore ican2step Report Abuse Always sumptin
Ayeghoti Champion Author Michigan Posts:2,435 Points:346,875 Joined:Aug 2007	Message Posted: Aug 16, 2012 1:03:14 AM Ignore Ayeghoti Report Abuse .
gasandgoAL Champion Author Alabama Posts:7,146 Points:1,588,690 Joined:Sep 2008	Message Posted: Aug 16, 2012 1:01:04 AM Ignore gasandgoAL Report Abuse restructure out put
bpj13 Champion Author North Carolina Posts:3,270 Points:873,475 Joined:Oct 2009	Message Posted: Aug 16, 2012 1:00:20 AM Ignore bpj13 Report Abuse Ok
tpguess Champion Author San Diego Posts:1,591 Points:369,885 Joined:Jan 2012	Message Posted: Aug 16, 2012 12:54:37 AM Ignore tpguess Report Abuse You can't controll Mother Nature
Mowerman08 Champion Author Milwaukee Posts:4,755 Points:1,216,270 Joined:Aug 2008	Message Posted: Aug 16, 2012 12:54:03 AM Ignore Mowerman08 Report Abuse Time to repeal the Renewable Fuel Standard Act!
probedude2 Champion Author Akron Posts:12,548 Points:2,379,230 Joined:Jun 2003	Message Posted: Aug 16, 2012 12:51:18 AM Ignore probedude2 Report Abuse Make ethanol with something other than a basic food source!
ftsgt Champion Author Illinois Posts:13,037 Points:2,482,495 Joined:Dec 2004	Message Posted: Aug 16, 2012 12:49:28 AM Ignore ftsgt Report Abuse hopefully it will cause it to be gone