Oil Forever (part Ii)

In Part l, I showed the problems we face in production of Oil, Imports, etc. and some probable solutions. In Part II, we will strive to bring you up to date with further developments. Lets look at one main alternative we have to lessen our dependency on foreign and also domestic oil -" Ethanol." Midwestern states are leading the way in Ethanol production. As we speak, yellow kernels of Corn are being crushed and transformed into fuel so we are less dependent on other sources. Ethanol plants are very attractive at this point. So much potential that Bill Gates has invested millions into these plants. The beauty of this is that Ethanol can be extracted from many sources, not just corn. Sugar and Wheat are other forms being used. Other areas would be Corn Stalks, Switchgrass and Wood Waste although these would be more costly to produce. At this point, Ethanol from Corn seems to be the least expensive to extract. Producers are finding it difficult to meet the demand already. Ethanol is certainly a winner for growers. They could receive - cents more per bushel. I am sure farmers and the like are eager for some faster development in production of this fuel. Lets look at some interesting statistics. National Ethanol Plants ----------------- Fuel Stations in US --------------------- , Fuel Stations that sell Ethanol --------- , Fuel Stations that sell E- ------------- ( E- is % Ethanol) The Plants above produce over Billion Gallons and expect to double this within years. Growers, Investors, etc. want to see the Plants expanded and or production accelerated. States have laws that require Ethanol Blended Gas. others are awaiting legislation. Still others are asking that all gas contain % Ethanol. So, why are we still paying these inflated prices for Fuel when we have so many alternatives out there? Oil companies are surely partly to blame. Remember when fuel prices were passing that $ mark (some are close again). President Bush has said that high fuel prices will lessen demand so it is not all bad (maybe not for him).Newer legislation would include a higher Federal gas Tax - all this directed to lessen our fuel usage. Is this a proper answer ? Mr. Bush has also set a goal of reducing the mid-east oil Imports by % by the year . Sounds good but probably not realistic without some action soon. Speaking of soon, can you guess why Ethanol and the like are so slow in production. Exon's fourth quarter profits of billion dollars and billion yearly could have something to do with this. Recently major Oil Companies were investigated regarding charges that they were restricting consumer access to Alternative Fuels such as Ethanol, Bio-Diesel, etc. Could anyone guess why? Do you think that these same Oil companies would be against producing Autos that could run on a blend of % Ethanol (E-)? Archer Daniels is one of the worlds largest corn processors. Having ADM on this side should be a plus for the Ethanol industry. Just imagine all the sources available to us for the production of Ethanol and related fuel. Its out there but you are going to have a lot of feet dragging before we see a significant upward trend in production of our resources. I have mentioned some of the main problems and hopefully they can be overcome. People need to keep in touch and that includes talking to and writing to your Senators and Representatives in Congress to move this issue along.