Completely OT: Inflation

[Paul McNary]

> -----Original Message-----
> From: filepro-list-bounces at lists.celestial.com 
> [mailto:filepro-list-bounces at lists.celestial.com] On Behalf 
> Of John Hemmer
> Sent: Tuesday, October 04, 2005 12:58 PM
> To: 'Fplist (E-mail)'
> Subject: Re: Completely OT: Inflation
> 
> 
> 
> ----- Original Message ----- 
> From: "Bob Stockler" <bob at trebor.iglou.com>
> To: "'Fplist (E-mail)'" <filepro-list at seaslug.org>
> Sent: Tuesday, October 04, 2005 10:47 AM
> Subject: Re: Completely OT: Inflation
> 
> 
> > Mike Schwartz wrote (on Tue, Oct 04, 2005 at 07:59:10AM -0500):
> >
> > |      People don't seem very concerned about the high gas 
> prices.  In
> this
> > | area of Wisconsin, I was just discussing the high gas 
> prices and 10%
> ethanol
> > | gas with a group of other computer consultants and I was shocked 
> > | that
> some
> > | of them refuse to burn that in their cars, even though 
> ethanol is a 
> > | renewable resource and Wisconsin somewhat subsidizes the slightly 
> > | higher cost.  One of them summed it up that he just doesn't feel 
> > | like he gets "maximum performance" with the 10% ethanol 
> gas on the 
> > | big SUV that he
> uses
> > | to commute about 50 miles back and forth each day to work.  
> > | Actually, I think he just won't pay the same amount of money for 
> > | ethanol gas that he gets 1 or 2 MPG less on, even if ethanol is a 
> > | renewable resource.
> >
> > The ethanol story sounds good, until you factor in the 
> energy required 
> > to grow the grains from which it is derived, and the energy 
> required 
> > to transport it to the sites where it is produced, and then 
> the energy 
> > required to ferment and distill it.  Recent studies have 
> shown it to 
> > be a net energy loss - though it does have some economic 
> benefits for 
> > those in the grain belt.
> >
> > Bob
> >
> Bob,
> 
> You could use the energy it produces to make it and sell 
> anything that's left. If there nothing left, then your all done.
> 
> :-)
> 
> John
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> 

Some of the latest ethanol production studies indicate after all
by-products are sold and if the distiller is using the cold
production process that it is economically feasible to produce
ethanol. Also this spring the wholesale price of ethanol went 
down into the $1.50 per gallon range. Corn at sub $2.00 (local
price today is $1.65) make ethanol production very cost effective
even with the 1-2 mpg reduction with E10 or 15% mpg reduction of
E85 (85% ethanol). The comment about subsidies to farmers is
a fact that has been taught in ag econ courses for many years.
US cheap food policy is the reason to pay farmers subsidies because
without them agriculture could not stay in business in the US.
The price for ag products (ie corn and soybeans) are in the same
range now as when I retired(quit) farming in 1984. The input costs
are 200-300% higher not counting the latest fuel price increase.
Farmers have become extremely efficient in the past 40 years.
A combine that cost $75,000 in 1984 today is almost $200,000.

Propane was once a by product of the refining process and practically
given away in the 1950's. Today it is an important part in the
fuel price. So you must use by-products value in the equation for
ethanol if you continue to use them in the gasoline production
equation.

On my soapbox again, I apologize. 
I remembered to bottom post for you JP (<:)


Paul McNary
McNary Computer Services