Ethanol impact re: gas pricing

Discussion in 'The BS Topic' started by Rick WI, May 12, 2011.

  1. The Champ

    The Champ Veteran Member

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    I understood that as soon as I read it.

    Most of the gas, in the midwest anyway, is blended with at least 10% ethanol. Then you add in the E85 which is 85% and that quickly eliminates the fraction of unblended gas sold - leaving the actual blend percentage much higher than 10%.

    I don't believe it makes economic sense to run E85 at this time based of fuel pricing and the mileage obtained. Yet to be determined is the ecological benefit - cleaner burning - less emissions - possible improved engine life.
     
  2. 76_TypeLT

    76_TypeLT Veteran Member Lifetime Gold Member

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    Lifting the drilling ban would in theory increase supply, which you say would "combat speculators". Speculators would still be speculating regardless of supply conditions. It's not like more crude oil supply pushes traders out of the market. Traders look at the market and all the variables and put on positions. Just sayin'...
     
  3. Rick WI

    Rick WI Veteran Member

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    Specs are long crude and the forward curve drives drilling, which is up nearly 1000 rigs year over year for liquids (oil). The shale boom has responded to the high crude prices versus low nat gas pricing. The US is in a crude growth mode.

    Specs in the market don't care what the price is, what they care about is the direction. If they think that's up, they go long, if down, they go short. Drilling activity certainly could force an exit of long positions sometime in the future if demand curves justify it. Just look at the forward curve on natural gas. Cheapest BTU's on the planet right now.....all driven by specs.
     
    Last edited: May 12, 2011
  4. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    We should also keep in mind... any lift on drilling bans now won't show any real market effect for 5-7 years.
    AND - the oil companies no zero obligation to sell the oil in the USA. If the Chinese offer a better price, guess where the USA drilled oil ends up
     
  5. iregret

    iregret Veteran Member Lifetime Gold Member

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    Plus I think you're delusional if you think the gas price in the US will drop. Gas price would remain the same profits would go up. Duh.
     
  6. Rick WI

    Rick WI Veteran Member

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    The ONLY drilling ban which could hurt the US right now is in the Bakken Shale region. Yes, the Gulf is a problem but that is and will get straigtened out. Baaken is the mother lode which also has fast drilling turnaround to well completion......at a VERY low cost. Imapct on pricing would/will be MUCH faster than 5-7 years. The Canadian Sands is also a major play which will have windfall in the US.

    When you read about the issues with the shale plays remember, there are those impacted by these wells who purchased the land ABSENT mineral rights. So they are pissed. Environmental issues are nil as long as the wll is cased correctly and drilling water is handled correctly. The industry is developing recycled drilling water so issues will be resolved.
     
  7. hhott71

    hhott71 R.I.P 11/19/18 Lifetime Gold Member

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    The subject of E85 for vehicle fuel is a failure.
    However it is an excellent race fuel.

    It's over 100 octane.
    It cools the intake charge as it atomizes.
    It costs less than pump 87 octane (because of taxpayer subsidies)
    100 octane Unleaded is over $6.00 gallon last time I checked and that was quite awhile ago.
    110 octane over $7.
    E85 stinks though,,,,, it smells like a bad beer burp when burned.
    It's good for 2-4 tenths in the quarter.
     
  8. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    I run E85 in my company car every day... it doesn't smell

    I think E85 can be a practical fuel; just not made out of corn. Switch Grass, or I recall a fungi based solution.

    My god how much better would this country be off without the goddamn corn subsidy
     
  9. JOHNNYMO

    JOHNNYMO Veteran Member

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    ......too bad we didnt drill 5-7 years ago....:confused:
     
  10. Aceshigh

    Aceshigh Veteran Member Lifetime Gold Member

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    President Bush called for a lift on the offshore drilling moratorium Jul 2008.
    He removed the executive order allowing it, but waited for Congress to follow.
    They did not.

    HOWEVER......
    6 months later prices dropped from $148 to $33 per barrel almost overnight.
    Coincidence?? Or did it send panics through investors and market speculators??

    http://www.campbell.house.gov/index.php?option=com_content&view=article&id=1507

    What I question is......
    Does the US Market really set the precedent for the global price of oil ??
    Because Dec 2008 prices plummeted amidst a decade long list of lies about supply
    being threatened by wars here, there, supply lines cut off, etc etc etc.....
    Yet almost overnight......did the world just go sing Kumbaya all the sudden ?? :confused:
     
    Last edited: May 13, 2011

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