Quote:
Originally Posted by TORRED1
If the price was down then the demand would be up and it would encourage more developement dont you think, it seems that the retailers or oil co's or whomever dont really want the E85 to catch on, they are just humoring us, and when it potentially fails they can say thet thier was no demand for it. Do you see where im comming from. kind of a catch 22, I'd love to use it but can't.
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The problem is that they cannot make ethanol fast enough as it is. Why sell it for $2.00/gallon and create more demand when (1) you do not have the production capacity to meet the current demand and (2) you are selling everything you can possibly make at $3.00/gallon.
But fear not! According to
this site, America's ethanol production capacity is quickly increasing:
2005 -- 3.6 billion gallons per year
2006 -- 4.3 billion gallons per year
2007 -- 5.5 billion gallons per year
current -- 7.2 billion gallons per year
Given that all estimates are that we will produce between 7.8 and 8.0 billion gallons in 2008, and not all plants can run at 100% all the time, we can conclude that by the end of this year, capacity will be in excess of 8.0 billion gallons per year.
So just give it some time, and production will catch up. In the mean time, enjoy the thought that all of the construction needed to produce 8 billion gallons of ethanol is adding a lot of construction jobs to the American economy.