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And you thought you had expensive gas?

3.19 in Chicago burbs for regular. 2.89 for E85. Why the heck is E85 keeping pace with regular? It's only 15% gasoline. Only one chain in the area with E85 might be the answer. And no, I don't use it in the bike. I don't mind 10% less mileage for 10% less cost, lower emissions, less use of mid-east oil and buying my fuel from corn growers with John Deere hats instead of turbins.
Sorry, rant over.
Mike Sr.

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Why the heck is E85 keeping pace with regular? It's only 15% gasoline

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Mike, is that backwards, I assumed it was 15% Ethanol, not the other way around?

Never mind Mike, just looked up E85, wow, I didn't understand what it was. Just thought it was like 10% Ethanol, but with a higher alcohol content. That would be cool to see this expand a lot. I don't see it as the end-all answer, but a good intermediate step, and maybe corn farmers will finally get a decent price for crops!!

Greg,
We traded in the V8 Explorer for a new Impala 3.5 that does the E85. Only Gas City stations carry it in the Chicago area. They need some competition! From what I gather, Minnesota is getting into it in a big way as well.
The Impala was a surprise for me:more than doubled our fuel economy,roomy,comfortable,adequate power from variable valve timing and a lot of aluminum understructure.
Mike Sr.

Now that I've read up on E85, I am a bit puzzled why it is almost as high as gas. The only logical explanation is that there is no economy of scale yet on the Ethanol production. It was one thing to produce enough ethanol for the 10% mix we've had for 25 or so years now, but for it to become the main component requires MUCH higher production levels. Of course, the Gas companies have a fairly significant economy of scale for producing gasoline, almost perfect free-market economy competition, and that hasn't done much for our gas prices now has it?


I did a search on E85 stations here too, I'd have to drive 30 miles to tank up, not very practical yet I'm afraid. We'll see if it takes off, hope so though!

Just a thought but...
I believe there is not enough ethanol trees (or whatever)
Dont you grow grain to sell to Arabs for oil?
What if you grew ethanol trees instead.
The arabs could eat oil?

Or is that too easy?

Not many stations have it yet. The demand has grown incredibly, thus the price going up. There are on plan, 30 new ethanol plants in construction or planned to be in the next few years in Illinois alone. The ethanol industry also succeeded in getting tariffs on imported ethanol, so that has pumped the price too. Brazil has big time excess capacity, makes most of theirs with sugarcane. We here in the USA can make it from corn, beans, saw grass, and sugarcane. It would be nice to see the end of sugar subsidies ( thus the price of food items go down, plus jobs could stay here, like in the candy industry. It would also reduce the use of corn based sweetners some...hopefully ), as the ethanol cold support it ( although, I dont know how it would effect the sugar beet farmers, is their product a candidate for ethanol ), get govt out of another industry.

Can someone explain this to me:
Before the current oil crisis petrol in England was around 80p/litre - in Australia it was around 95c/litre
Now it is 106p / litre in England but 145c/litre in oz
i.e. UK has about a 25% rise, Australia has 50% rise over the same period. Both by petrol on the world market, and the exchange rate has remained pretty steady.

Any ideas?

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I dont know how it would effect the sugar beet farmers, is their product a candidate for ethanol

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By the sounds of the official website, any sugar producing crop like corn, sugarcane,beets, etc... is a good candidate for ethanol. They even talk about different grasses, so...

Popeye,
Lot of oil in the North Atlantic. Don't know too much about oil supply or how big the oil patch is in oz. Supply is larger in the UK but don't about demand where you live.
Mark

Isn't ethonol like lpg , cheaper but you need more of it for the same bang as normal fuel, so is it realy cheaper ?

Not to my knowledge, the E85 is touted as having 105 Octane though.

Dr. Evil is controlling the gas prices and he doesn't like Aussies for some reason.

hi hokie,

I dont think prices for oil work like that - its a world market.

I think Dr Evil may be nearer the mark - except Dr Evil works for the oil companies and wants to buy a new island somewhere.

I just console myself with the fact that Petrol in Oz is still only two thirds the price it was in the UK BEFORE the price rises! i.e. around 60p / litre

Ethanol does require more to get equal bang, yet with the stellar ag economy in the USA, and even Australia, Brazil and Argentina can produce high amounts of products to make ethanol. A shift to ethanol has widespread wealth and economic changes. Wealth in farms, the changes possible in the ag sector and how it can add to land values, the change in the export/import equations as the need to rely on others ( like the USA does on oil ) changes drastically. As for oil in the USA, former Sen Breaux, D-LA, recently said that ther is no reason for us to not be taking oil from Alaska, the West and East coast, that all have amazing amounts available, and that the enviromentalist and their stories of doom and disaster are false and hurtful to the USA. He also mentioned that his party needs to break free of the enviromentalists grasp and do what is right, not what brings in money ( interesting how he is retired and now says this ).

Our fuel price is based on a different market, we are attached to the Singapore Refined fuel price or the Malaysian crude price

Last year ethanol in the US cost $2 per gallon. Ethanol in the US currently costs $5 per gallon, due to the recent demand by states coming online for their required 10% blending, accounting for a portion of the recent price increases in gas.

Ethanol lowers MPGs. Lower MPGs = more gallons consumed = more tax revenue for the feds and states.

Why is it that all these brainstorms that pop out of the EPA always result in us paying more tax?

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interesting how he is retired and now says this

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SIR! Are you somehow trying to infer that our fine and distinguished Ladies and Gentlemen of the United States Congress are somehow beholden to the dirty money of Lobbyists and Special Interests? Why that is purely ludicrous and slanderous! I want to know right this minute who tipped you off...

$8.09 per gallon??? D#*%..Adey. It would cost me around $23 or $25 to fill up there I guess I shouldn't complain too much when I paid $2.79 for premium yesterday.

Did you hear about the guy at the refinery (refinery?) who got fired recently for drinking the ethanol before the gasoline was added? And I thought the beer taps at the Bud brewery were neat. Speaking of the Bud brewery, about 10-15 years ago we had a Shriners Convention in St Louis. We were like Moslems going to Mecca They probably kept an especially close eye on us.

Wow, that's pretty hard up for a drink! Well, on a positive note, BP just reported a quarterly (I think I heard this right!) profit of $7 BILLION, 30% over last years profit at the same time. Boy, we are definitely Lemmings! I do feel kind of guilty though for not doing my part to help the Oil Execs out by riding something that uses so little gas. I've already taken my VW down to put a deposit on a new Hummer, and not that thrifty H3, I want the full size baby with 8mpg!!