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Oil Prices Hit Record $115 a Barrel As Ethanol Helps Prevent Higher Prices
Without the expansion of biofuel production and use in the US, Brazil and elsewhere, world oil demand would increase and so would the price. Merrill Lynch analyst Francisco Blanch told the Wall Street Journal that world oil prices would be 15% higher. At today’s record prices, that would equate to $132 per barrel of oil. But that’s not all:

--In 2008, worldwide ethanol production is expected to reach more than 16.2 billion gallons which is equivalent to 1 million barrels of oil per day.

--According to one estimate, as of April 4, the US consumed over 1.9 billion gallons of ethanol, the equivalent of nearly 46 million barrels of oil. Without ethanol, the oil industry would have had to draw down gasoline inventories and import those barrels.

--Without ethanol in America’s gasoline supply, gasoline prices could be more than 25% higher than they are today. Diesel prices, already higher than gasoline, would be another 16% higher.
 

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Yeah, and if we didn't convert so much corn into ethanol we wouldn't have big price increases on grain and corn based products. Not to mention what this has meant for developing nations
that rely on these staples to feed the poor.
 

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Yeah, and if we didn't convert so much corn into ethanol we wouldn't have big price increases on grain and corn based products. Not to mention what this has meant for developing nations
that rely on these staples to feed the poor.
BS. Corn is not the main source now. And even if it was- why is it OUR problem to feed these people who can't stop f&^%ing long enough to realize that maybe if they had 1 kid instead of 8, they could feed it.

We need to be dropping condoms, not corn. I don't liek welfare here, and I sure as heck don't liek our little global welfare program either.

Corn isn't expensive because we are using it all, it's expensive because they've created this vision of ethanol using it all and everyone believes it.

Just like oil goes up 5% a month-demand isn't likely to be rising the same pace...it's all in the marketing.
 

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If you read the article...it proves that price isn't completely dictated by demand....

Says oil could be 15% higher-then gas would be 25% higher...so where does that other 10% come from? A future traders ability to create panic is where.
 

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BS. Corn is not the main source now. And even if it was- why is it OUR problem to feed these people who can't stop f&^%ing long enough to realize that maybe if they had 1 kid instead of 8, they could feed it.

We need to be dropping condoms, not corn. I don't liek welfare here, and I sure as heck don't liek our little global welfare program either.

Corn isn't expensive because we are using it all, it's expensive because they've created this vision of ethanol using it all and everyone believes it.

Just like oil goes up 5% a month-demand isn't likely to be rising the same pace...it's all in the marketing.
If corn is not the main source of ethanol production in the USA, then what is? Your statements show that you really don't care about anyone else except yourself.
Corn has become much more expensive because so much of it is used for ethanol
and not food based products. As an example, in Mexico many people are having
a very difficult time affording a big staple food product like corn tortilla's due to the
huge run-up in corn based food products. This is reality, plain and simple.
 

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Corn prices have minimal impact on food prices. For every dollar we spend on food, only 19 cents goes towards raw materials. The rest, 81 cents, goes to labor, transportation, packaging, etc.

Ethanol is renewable and it reduces our dependence on foreign oil. It is not the answer to all our problems but it is part of the solution.
 

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If corn is not the main source of ethanol production in the USA, then what is? Your statements show that you really don't care about anyone else except yourself.
Corn has become much more expensive because so much of it is used for ethanol
and not food based products. As an example, in Mexico many people are having
a very difficult time affording a big staple food product like corn tortilla's due to the
huge run-up in corn based food products. This is reality, plain and simple.
the corn we eat and the corn used for ethanol are two different crops, not all corn is created equal.
 

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If corn is not the main source of ethanol production in the USA, then what is? Your statements show that you really don't care about anyone else except yourself.
Corn has become much more expensive because so much of it is used for ethanol
and not food based products. As an example, in Mexico many people are having
a very difficult time affording a big staple food product like corn tortilla's due to the
huge run-up in corn based food products. This is reality, plain and simple.
It dose not HAVE to be corn. Sure, right now corn is the main source but given all the recent developments we are sure to see any non wheat based organic product as usable. There will be grass, wood chips, sugar beats, etc. being used GREATLY in the near future. Also, I think the USA should not be blamed for starving people around the world. Countries need to start developing industry and stop fighting in civil conflicts and taking world welfare. I can see the stink of big oil all over the entire anti-ethanol argument.
 

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As an example, in Mexico many people are having
a very difficult time affording a big staple food product like corn tortilla's due to the
huge run-up in corn based food products. This is reality, plain and simple.
Maybe if Mexico didn't gouge us on oil they could afford the corn. You reap what you sow...
 

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BS. Corn is not the main source now. And even if it was- why is it OUR problem to feed these people who can't stop f&^%ing long enough to realize that maybe if they had 1 kid instead of 8, they could feed it.

Ouch!
 

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Maybe if Mexico didn't gouge us on oil they could afford the corn. You reap what you sow...
And what about our incredibly high oil consumption? What have WE REAPED? How does Mexico "gouge" us with oil? The price of oil is set by the market, not individual nations. The fact of our ever deflating currency, caused by all the borrowing our government does (mostly from China) in order to keep up the occupation of Iraq, that has more to do with keeping oil at such high price levels.

The trading in oil is done in US dollars. When the value of US Dollars falls, it takes more of them to buy the same amount. Mexcio, like every other nation that produces it, puts it's oil on sale at one of a few commodities exchanges around the world. Buyers bid on it and the highest one wins.
 

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If corn is not the main source of ethanol production in the USA, then what is? Your statements show that you really don't care about anyone else except yourself.
Corn has become much more expensive because so much of it is used for ethanol
and not food based products. As an example, in Mexico many people are having
a very difficult time affording a big staple food product like corn tortilla's due to the
huge run-up in corn based food products. This is reality, plain and simple.


1.) You need a lesson in agriculture. The state of Iowa alone can feed the current world population 4 times if oil wasn't so expensive to get the food to the people. Not the production of ethanol.

2.) You need petroleum to make the packaging for most food products. Hmmm… $115 a barrel packaging more expensive Hmmm:

Now you are informed. Not all of the increase in food cost is ethanol. In fact the cost of shipping it and packaging it is the majority.

I can not believe the PR people will buy from big Oil.

Do people really believe that food cost will go down if you quit producing ethanol… REALLY… DO YOU BELIEVE THIS!
 

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And what about our incredibly high oil consumption? What have WE REAPED? How does Mexico "gouge" us with oil? The price of oil is set by the market, not individual nations. The fact of our ever deflating currency, caused by all the borrowing our government does (mostly from China) in order to keep up the occupation of Iraq, that has more to do with keeping oil at such high price levels.

The trading in oil is done in US dollars. When the value of US Dollars falls, it takes more of them to buy the same amount. Mexcio, like every other nation that produces it, puts it's oil on sale at one of a few commodities exchanges around the world. Buyers bid on it and the highest one wins.
These ******* cartels have been putting the screws to us for a long time.
What's their attitude? Tough shyte... you want it you pay. Well, we got the food, so enjoy the taste of your oil.

It's this simple... want cheap food, dump a bunch of oil on the open market and watch the price crash.
It only takes one country to do it.
 

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From a post a few days ago right here in GMI.

American corn production/availability AFTER the ethanol industry took their share...


2005 - 9,700,000,000 bushels
2006 - 8,700,000,000 bushels
2007 - 10,800,000,000 bushels

Strange. The number has increased.

So where's the hard facts backing up corn ethanol is leading to a shortage of corn or any other food? The areas where corn for ethanol are raised would not be used for other crops. American farmers for YEARS have been getting government subsidies to keep producing their crops and sell them at a loss just to keep them from closing down the farm. Only now, the American farmer actually has an OUTLET for their product.
 

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From a post a few days ago right here in GMI.

American corn production/availability AFTER the ethanol industry took their share...


2005 - 9,700,000,000 bushels
2006 - 8,700,000,000 bushels
2007 - 10,800,000,000 bushels

Strange. The number has increased.

So where's the hard facts backing up corn ethanol is leading to a shortage of corn or any other food? The areas where corn for ethanol are raised would not be used for other crops. American farmers for YEARS have been getting government subsidies to keep producing their crops and sell them at a loss just to keep them from closing down the farm. Only now, the American farmer actually has an OUTLET for their product.
Would that have grown more without increased ethanol production? Did the growth match the increase in demand?
 

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And what about our incredibly high oil consumption? What have WE REAPED? How does Mexico "gouge" us with oil? The price of oil is set by the market, not individual nations. The fact of our ever deflating currency, caused by all the borrowing our government does (mostly from China) in order to keep up the occupation of Iraq, that has more to do with keeping oil at such high price levels.

The trading in oil is done in US dollars. When the value of US Dollars falls, it takes more of them to buy the same amount. Mexcio, like every other nation that produces it, puts it's oil on sale at one of a few commodities exchanges around the world. Buyers bid on it and the highest one wins.
Someone gouging someone, oil doubled in the last 2 years, has demand doubled?

While corn may be used for some ethanol, it isn't the quality corn you would eat, and almost every new plant is not cellulous based, meaning waste. Such as the corn stalks, or branches left over from logging, or really just about any plant waste.

Some people say "everything the ethanol people say is propaganda for their cause" but then on the other hand, when the oil companies tell you ethanol wont work, you don't suspect they might have an agenda... ;)
 

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Yeah, and if we didn't convert so much corn into ethanol we wouldn't have big price increases on grain and corn based products. Not to mention what this has meant for developing nations
that rely on these staples to feed the poor.
For those developing nations you talk about, perhaps they should be growing corn, or perhaps refining their own ethanol. Brazil made that investment, and it's paying off for them.
 

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Would that have grown more without increased ethanol production? Did the growth match the increase in demand?
You grow more when you get paid a decent price for it.
No one wants to work hard only to lose money. But that's what some people here expect farmers to do.
 
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