GE Profits

[PLC1]

Most oil companies don't like ethanol, and I would argue they are a pretty powerful special interest group opposing any influence the corn growers might have....essentially evening it out overall.

Then why do we still have ethanol in gasoline? Why are the "flexfuel" vehicles being touted as an answer to high fuel costs? It's a matter of who has the power, and how motivated they are. The oil industry may not like ethanol, but it isn't a big deal for them.

 

[BigRob]

Then why do we still have ethanol in gasoline? Why are the "flexfuel" vehicles being touted as an answer to high fuel costs? It's a matter of who has the power, and how motivated they are. The oil industry may not like ethanol, but it isn't a big deal for them.

Because changing the process now would be very expensive, and what would be the point?

The point is that there are competing factions, not that either side can never score a political victory. Ethanol has lost a ton of steam from where it was years ago, and I wouldn't say that is from a lack of ethanol lobbying dollars.

 

[PLC1]

Because changing the process now would be very expensive, and what would be the point?

The point is that there are competing factions, not that either side can never score a political victory. Ethanol has lost a ton of steam from where it was years ago, and I wouldn't say that is from a lack of ethanol lobbying dollars.

I'm not sure why taking ethanol out of gas would have to cost a ton of money. Just quit putting it in.

But, yes, it does look like the idea has lost some steam, and not for a lack of lobbying dollars. Sometimes the public can see that an idea isn't working, and public opinion does still count for something.

Just not as much as real dollars.

 

[BigRob]

I'm not sure why taking ethanol out of gas would have to cost a ton of money. Just quit putting it in.

But, yes, it does look like the idea has lost some steam, and not for a lack of lobbying dollars. Sometimes the public can see that an idea isn't working, and public opinion does still count for something.

Just not as much as real dollars.

Refiners and gas stations have argued that upping the ethanol blend levels to 15% would mean having to revamp the refining process and the current station pumps would be unable to handle it, meaning new pumps etc.

I would need to do more research, but I assume a similar argument would apply to lowering levels as well, if equipment is designed for specific blend levels.