James48843
TSP Talk Royalty
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As Ethanol is dependant on petroleum for production, the more petroleum cost, the more expensive ethanol is. This is reflected in the cost of E85 (see the AAA link below).
http://www.fuelgaugereport.com/
Also, another useful link http://www.nature.org/initiatives/climatechange/features/art23819.html
1. Fuel Gauge Report: displays something called " Adjusted BTU price". What is that?
I'll tell you. It's a mythical number made up because ethanol has fewer BTU's per gallon than gasoline does. But you know what? Gasoline has fewer BTU's per gallon than diesel fuel does. So why don't they display gasoline price as "Adjusted BTU price?"
The fact is that E85 fuel DOES give you lower MPGs- how much lower depends on the vehicle. Today, all flex-fuel engines are designed around gasoline, and then converted to be flex-fuel. They are not optimized for ethanol. If they were, they would be smaller, with higher compression ( 14-to1 would work just fine) to give the same power on much smaller size, and lower fuel consumption.
My ex-government Dodge Stratus POV gets me 22 MPG on E85, and 24 MPG on gasoline. Sure, that's a 2 MPG drop- about 10%. So I need a 10% price difference to BREAK EVEN at the pump. Anything better than a 10% difference, and I'm ahead.
Now, the price of gasoline at the pump DOES NOT reflect the actual cost to society. Add in the cost of keeping the sea lanes open in the Persian Gulf- and the deployment of U.S. forces being used to guard the Iraqi oil terminal platforms (Yes, we're still providing security there), all the other security we provide, all the Navy ship patrols off Somalia keeping oil tankers from being hijacked, and the cost is huge. One study put it at over $5 a gallon for gasoline here. But nobody tacks that on to the price of gas.
#2- Nature Conservancy- uses faulty data. He says back in 2005 that in order to increase ethanol production, we're going to have to clear-cut forests, etc. In fact, since 2005, ethanol production has TRIPLED in this country to over 10 bullion gallons a year. And the amount of land used to produce that has actually DECREASED, as we've had more productive land. This year, America produced over 13 billion bushels of corn- an all-time high. We did it on LESS land than in the pass- because new corn varieties are increasing bushels per acre every year.
Nature Conservancy talks a good talk, but they don't have the facts. I'll take facts any day.