HAVE A GREAT WEDNESDAY READERS!

We finally got rid of most of the "fat cat" ethanol subsidies, and now due to these subsidies for decades, the ethanol manufacturing business has gotten so overloaded that they are now exporting ethanol to the tune of 1.1 BILLION gallons. They are making more ethanol than US drivers are consuming with ethanol gas! Think about this..........the ethanol industry is clearing more and more land to grow more and more corn, with the millions of tons of added fertilizers coming down river to worsen the already bad "red algae" layer that shows up in the Gulf every summer and threatens to kill Gulf fisheries, and continues to increase the cost of ALL food products in which corn is used, directly or indirectly! Can you believe this? They're shipping food to foreign countries in the form of ethanol!

We need to continue to hammer our US Congressmen and Senators to STOP this ethanol fuel insanity! It's gotten totally out of hand..........see the article below:

RFA says US ethanol exports at highest level in 2011

16 January 2012

The Renewable Fuels Association (RFA) says the ethanol exports for last year could have been more than 1.1 billion gallons, thanks to a new monthly record set in November.

More than 150 million gallons was exported in that month, according to government figures, going mainly to Brazil. The fuel was also exported to Canada, Mexico and the Netherlands were the other main export destinations.

From November 2010 to November 2011, more than 1 billion gallons was exported and the total for 2011 was due to hit 1.11 billion gallons. However, these exports are the ones that did not qualify for an ethanol blend tax credit because the ethanol was not mixed with petrol before being exported.

‘Exports have become an important part of the business model for American ethanol producers,’ says Geoff Cooper, VP of research and analysis at the RFA. ‘American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe. While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America’s ethanol industry.’

Last month, Cooper said that US policies had ‘perversely incentivised’ the importation of ethanol from Brazil and he estimates that this will continue throughout this year.

"Pete" Landry.........comments welcome.........at............way2gopete@yahoo.com

HAVE A GREAT FRIDAY READERS!

Many of you have most likely been hearing on the news of late that gas prices are expected to skyrocket by mid year. Some of this is due to the "sabre rattling" by Iran threatening to close the Strait of Harmoz if continued US and World sanctions threatens their economy. They additionally have warned the US not to bring their naval aircraft carriers into Gulf waters. This could eventually escalate into something bad! Plus the Iranians have warned their surrounding Arab states NOT to make up the difference in crude oil if Iran cuts off the west of their crude.

Here's an article on that issue:

Gas Outlook: ‘Most Painful Year At Pump Ever’

January 13, 2012 2:16 PM

CHICAGO (CBS) — Gasoline prices could approach $5 a gallon by Memorial Day and stay at record levels for much of the summer, according to a forecast by GasBuddy.com.

Gas prices always spike in the summer, but the 2012 Gasbuddy.com Price Outlook predicts this summer will break records.

“It looks like it might be the most painful year at the pump that we have ever seen,” senior analyst Patrick DeHaan said.

By Memorial Day, gasoline in the Chicago area could rise to between $4.60 and $4.95 a gallon–more than a dollar above the current average.

DeHaan says there are several factors that will cause the increase, and one of them is a double-edged sword.

“The economy continues to improve; it continues to push up our demand for crude oil,” he said.

Another factor is Iran’s nuclear weapons ambitions. As the United States imposes sanctions, the country responds with threats to close a key oil transit pathway: The Strait Of Hormuz.

"Pete" Landry .........comments welcome.......at..........way2gopete@yahoo.com

HAVE A GREAT THURSDAY READERS!

I'm working on several MAJOR additions to the website and will hopefully be ready to announce the additions in either March or April! I really believe you will be very pleased with the additions.

Here's another rather interesting article on "ethanol running out of gas"!

Ethanol runs out of gas

Published 01/12/2012 12:00 AM

Updated 01/11/2012 05:15 PM

How truly amazing to see Democrats and Republicans in Congress finally doing something right by allowing the $6 billion annual tax subsidy for the corn ethanol industry to expire. Also ending is the heavy tariff that was aimed at keeping cheaper and more eco-friendly sugar-cane-based Brazilian ethanol out of the country.

Is it too much to ask that Congress also end its mandate forcing refiners to blend up to 15 billion gallons a year of the corn ethanol into gasoline, increasing to 36 billion by 2022? Probably, but the official end of the subsidies and tariff is at least a start.

This newspaper has long been critical of Congress' unquestioning support for corn ethanol. It takes almost as much energy to create the stuff as the energy it provides as a fuel. Backers also peddle it as a lower-carbon alternative to fossil fuels, but studies have shown that when all factors are taken into consideration, including clearing new land to replace crops lost to ethanol production, ethanol actually generates more greenhouse gas.

Ethanol also boosted food prices when farmers, benefitting from the heavily subsidized nature of the industry, determined they could make more money by replacing food crops with corn for ethanol.

So why did these subsidies dating back to 1978 survive? Liberal lawmakers backed the subsidies because of the undeserved pro-environmental reputation of the biofuel, while conservatives from the large farming states backed it to keep farmers happy. A remarkable shift led Congress to adjourn without again expending the subsidies. Many Democrats now dismiss the 45-cent-per-gallon tax credit for oil companies to blend ethanol into gasoline as needless corporate welfare and many conservative Republicans see it as needlessly contributing to the deficit.

But it only took inaction to let the subsidies expire at the end of 2011; it will take an affirmative vote to end the ethanol-blending mandate. Perhaps such political courage can be mustered after the November 2012 election.

While on the subject of subsidies, Congress should also end the numerous tax breaks the oil and natural gas industries receive, costing about $4 billion a year. President Obama has pushed to end those as well, but finds himself blocked by Republicans who raise false alarms about hurting fossil-fuel production. Big Oil doesn't need tax breaks to produce oil and make massive profits.

Congress should instead focus reasonable subsidies on encouraging the growth of emerging, renewable energy technologies, such as solar, wind power and geo-thermal heating. Those industries have great job-growth potential while helping the environment.

("Pete" Comment: and how about drilling for more oil here in the US? The Country is estimated to have more oil than ALL of the Middle East Countries combined! But, the liberal and environmental wacos refuse to allow more drilling!)

"Pete" Landry..........comments welcome............at.............way2gopete@yahoo.com

HAVE A GREAT WEDNESDAY READERS!

What a disappointing ending to both LSU and the New Orleans Saints football seasons! But, we must move on.......

The loss of the ethanol subsidies to refineries and the loss of the tax on imported ethanol has caused the ethanol industry trying to shore up their business in other ways. They're pleading for another subsidy for "E-85", the 85% ethanol/15% gasoline blend to further their demand for ethanol production. Most drivers who have tried E-85 for the first time don't go back for "seconds" when they learn they get between 30% - 40% LOWER gas mileage. It's just the "tree huggers" and environmental wacos who will buy this stuff.

Here's another article on the ethanol industry's efforts to get more financial support for their "E-85" campaign:

E85 coalition continues push for tax credit relief

By Kris Bevill | January 06, 2012

The expiration of the 45-cent per gallon Volumetric Ethanol Excise Tax Credit on Dec. 31 has resulted in an immediate 38-cent per gallon increase on E85, eliminating the cost incentive for consumers to purchase the fuel and jeopardizing the investments made by retailers who have installed E85 infrastructure, according to the Coalition for E85. In order to keep E85 competitive with retail gasoline prices, the coalition proposed last fall to modify the language of the Alternative Fuel Credit in the U.S. tax code, including E85 as an alternative fuel rather than a gasoline additive. Although Congress has previously designated E85 as an alternative fuel, it was intentionally omitted from the Alternative Fuel Credit in order to prevent it from benefitting doubly from VEETC and the Alternative Fuel Credit. Now that VEETC has expired, the coalition believes this is no longer an issue so allowing E85 to join fuels such as compressed natural gas, propane and hydrogen in qualifying for the 50-cent per gallon tax credit is warranted and would effectively reverse the negative impacts of VEETC’s expiration. Because Congress failed to extend the Alternative Fuel Credit by Dec. 31, however, that credit has also expired and the coalition now must convince Congress to reenact the Alternative Fuel Credit in addition to adding ethanol to the list of applicable fuels.

“Despite the tax credit’s expiration, we are continuing to work to protect the investments made by millions of flex fuel drivers, and thousands of retailers and producers who want to keep money spent on fuel right here in our country,” said Matt Horton, CEO of alternative fuel provider Propel Fuels. “Oil companies didn’t need the tax credit to keep blending ethanol into gasoline, but America’s alternative fuel retailers need the tax credit to keep E85 affordable. Without Congress’ continued support, America will become more dependent on foreign oil.”

The coalition noted that if E85 is not successful it puts the expansion of blender pump infrastructure at risk and could also negatively affect investments in the development of advanced biofuels. Coalition members are ramping up their efforts to convince Congress to make the change and urge supporters to assist them in their efforts. Sample letters to Congress, pump top posters and social media links have been made available at the coalition’s website for supporters of the movement.

"Pete" Landry..........comments welcome............at...........way2gopete@yahoo.com

HAVE A GREAT FRIDAY READERS!

Guess everyone has heard by now that Mo Claiborne, Brockers and Ruben Randall have all declared for the NFL draft today. Then, there are rumblings that several others may declare early also or transfer. There were several players who said they were "very disappointed" that Coach Miles didn't even give Jarred Lee a chance to play in the National championship game Monday night. I hear that LSU AD Joe Aleva has been bombarded with letters and e-mails about the teams total lack of performance in the game. Saban and his staff TOTALLY out coached Miles! It was downright embarassing. I spoke with a friend of mine in Fairhope, Alabama this afternoon and she said she was embarassed for LSU..........coming from a Bama fan?

Oh, maybe baseball will do better? Now, back to ethanol.

Here's an article I found about a company that wants to build an ethanol pipeline from the midwest to the east. I don't know what type of materials they propose to use as ethanol cannot be transferred in conventional pipelines because it is corrosive to steel. Here's the article:

Ethanol pipeline on hold

Intelligencer Journal
Lancaster New Era

Jan 10, 2012 22:57

By AD CRABLE
Staff Writer

A proposed ethanol pipeline that could cross seven Lancaster County townships has been put on hold.

The nation's first ethanol pipeline, a $3.5 billion, 1,800-mile project called the Independent Pipeline, was proposed in 2010 by POET Ethanol Products, the nation's largest corn-based ethanol producer, and Magellan Midstream Partners, a pipeline-building company.

It would link the Midwest's considerable ethanol-producing region to East Coast refineries.

But the project hinged on a federal loan guarantee which has not been forthcoming from Congress, despite several bills.

Said POET spokesman Nathan Schock, "We continue to believe that it is a viable project with tremendous benefits for the country, but with little prospects for a federal loan guarantee in the near future, we are currently focused on other efforts."

When unveiled, the project proposed that the 20-inch-diameter pipeline follow an existing petroleum pipeline right of way owned by Buckeye Partners.

The Buckeye pipeline runs through Mount Joy, Rapho, East Hempfield, Manheim, Upper Leacock, Earl and Salisbury townships.

Ethanol currently is transported across the country by tanker trucks and by rail. Ethanol cannot be used in existing petroleum pipelines because of its corrosive nature.

acrable@lnpnews.com

Read more: http://lancasteronline.com/article/local/566422_Ethanol-pipeline-on-hold.html#ixzz1j7h2UOlp

"Pete" Landry............comments welcome...........at............way2gopete@yahoo.com

HAVE A GREAT WEDNESDAY READERS!

What an embarassing loss by our LSU Tigers in Monday's BCS National Championship game in New Orleans. Alabama Coach Nick Saban had his team ready to play and LSU's Coach Les Miles DID NOT! I believe most of us had hoped they would come out at the start of the 3rd quarter with some adjustments to get back in the game.......but Miles stayed with the same plan. Then, he totally enraged the fans by not pulling Jefferson and at least give Jarret Lee a try. He couldn't have done any worse?

At least, the team will have 3 VERY GOOD quarterbacks starting next year, with both Jefferson and Lee graduating this year. Maybe next year?

Back to ethanol issues........found this article commending the US Congress for NOT extending the ethanol subsidies. As I explained in a previous post, the $0.45 refinery tax credit subsidy to refineries to blend ethanol gas and the $0.54/gallon ethanol import tariff expired on January 1st this year. I'm hoping the loss of this credit will make the economics such that refineries, especially the majors, will return to blending at least some ethanol FREE gas. We may not know this however until mid year or so.

JAMES B. TREECE

Kudos to Congress for letting ethanol subsidy expire

December 29, 2011 - 11:14 am ET

Other blogs

James B. Treece is industry editor at Automotive News.

The current do-nothing, argue-over-everything Congress managed to do something right before adjourning last Friday, by -- surprise, surprise -- doing nothing.

Congress failed to extend a 30-year tax subsidy for corn-based ethanol that cost taxpayers $6 billion annually and ended a tariff on imported Brazilian ethanol.

Ending that egregious subsidy was the right thing to do on so many fronts that it’s hard to enumerate them all. Here are a few reasons to praise Congress’ action/inaction:

• It saves $6 billion a year. That’s a pittance compared with the savings from ending the war in Iraq, which had the added benefit of saving American lives. But even in Washington, at least outside the Pentagon, $6 billion is real money.

• Supporters of corn-based ethanol claimed it was an interim step on the way to cellulosic ethanol, which would use leftover wood chips, corn stalks (rather than kernels) and other waste products to create ethanol. But after 30 years, that’s a lame argument.

• It’s not like the subsidy is a critical price support that is keeping family farmers from going bankrupt and losing their land. Growing demand from China has boosted crop prices. The subsidy was icing on the cake, pushing corn prices just that much higher.

You can reach James B. Treece at jtreece@crain.com.

Read more: http://www.autonews.com/article/20111229/BLOG06/111229922#ixzz1hznnTRwh

"Pete" Landry.............comments welcome..............at............way2gopete@yahoo.com

HAPPY BCS CHAMPIONSHIP MONDAY READERS!

Well, the big day is finally here! The 2011 Football BCS National College game is today. The game is to be shown on ESPN and kickoff is scheduled for 7:30 pm CST.

From watching the news conferences and interviews with the LSU coaches and players, there is NO DOUBT that they will come out fired up and ready to play and WIN this last game of the season to make a perfect 14-0 season!

Watch for Tyrann Mathieu, aka the "Honey Badger" to make one or more BIG game changing plays tonight! If Jordan Jefferson plays anywhere near as good as he did in the Cotton Bowl last year, LSU will surely win this game.

By the way, I learned today that the team has a nickname for another team member. Big defensive End Sam Montgomery has earned the nickname "Tasmanian Devil" for his tenacious play and playful attitude.

In the event you don't know that a "Tasmanian Devil" is, check the pic:

GEAUX TIGERS! ROLL THE TIDE BACK TO BAMA!

Tasmanian Devil