Watch US Debate Over Approval E15 in Gasoline

[charliep]

Would watch the ethanol debate in the US carefully and the implications for corn demand. Have already highlighted that China may be changing its policy around corn such that would be an year in year out importer the same way they are with soybeans.

Some will make a food versus fuel debate but I think is a fuel in a car versus meat on a plate. May hand the competitive advantage for feeding livestock back to Canada inspite of MCOOL (mandatory country of origin labelling). Politics are getting very interesting south of us - particularly as mid term elections approach.

Just an example article - you can find others.

[URL="http://www.icis.com/Articles/2010/10/13/9400946/us-approves-15-ethanol-blend-over-oil-industry-objections.html"]e15 debate[/URL]

[parsley]

It's a debate about spreading socialism/communism, charliep

There is nothing more that Obama would like to do, than destroy the oil industry. And the Liberals will work hand in hand with him. They both want "green", and green will destroy what Canada and the US now enjoy.

They will stop at nothing to get their way.

http://www.foxnews.com/opinion/2010/10/13/richard-grenell-united-nations-susan-rice-security-council-canada-liberal-gaza/

I will also note there are some corporations who are poised to hasten greening, with an eye to centrally planned agriculture.

Okay, gasp, now.

Pars

[charliep]

Not much on politics or conspiracy theories. Just know ethanol will use 4.7 bln bu of US corn. Making metic, this is close to 120 mln tonne or about 2.5 times western Canadian crop production.

[agstar77]

Pars,Is Sarah Palin your penpal ?

[charliep]

Agweb today.

[URL="http://www.agweb.com/article/epa_clears_e15_for_2007__newer_cars__light_trucks/"]comments e15 policy[/URL]

[wilagro]

My vehicle will burn E85 fuel but there is NONE available locally. E15 isn't either.

The Americans are doing the right thing IMHO and more power to them. Too bad Canada hasn't seen the light as well.

E15 fuel is intended for a very small segment of the consumers in the USA but even that small number of consumers will help.

[dirtgirl]

Charliep - Also interesting is that ethanol subsidies are due to expire at the end of December and it is looking unlikely that Congress will renew them. What do you think that will mean for us? Do you think the Oct 8 USDA report corn yield is a political number meant drive up corn prices and ensure the death of the ethanol subsidies?

[charliep]

I'll leave the second question for discussion. On the first, a company ARD subscribes expects the subsidies to stay in place although how paid out may change (change won't be immediate). An example is an issue with ethanol is blending capacity - some type of support for regional/gas station level blending. May also be needs for more tanks/other infrastructure at the gas level. Even things like pipelines/other transport mechanisms to move ethanol around.

They also highlighted that some of the new technology ethanol production gets a lot higher subsidy (cellulosic and microbial). Less talked about but these technologies are still moving forward.

[rockpile]

It's no secret that the US is on a mission to become
energy self reliant, though in a North American
context. This was initiated through the Bush
administration, so Pars, I hardly think it is a
commie plot! What are their options on reducing
reliance on imported energy supplies, particularly
from quasi friendly (or not) mid east states? The
massive finds of shale gas, off shore and gulf state
oil, imports from friendly old us (oil sands) and of
course energy conversion from other sources -i.e.
grain, solar, wind and nuclear. And probably the
biggest factor - conservation. I see it as a national
strategy that is non-partisan. As for meat on the
table versus fuel in the tank - how else can you get
to MacDonalds and do both? Just my perspective.