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The Ethanol Farce

November 26th, 2007

I’ve always been skeptical of the true value of running a vehicle on ethanol. I feel that the next great propulsive fuel must have a net energy content greater than gasoline. Scientifically, this means that the energy content of a given amount of future fuel must be greater than gasoline. Currently, I believe the prime candidate for this is hydrogen.

But I digress. Back to the ethanol farce.

chevy tahoeI came across a Consumer Reports revelation from 2006 presenting the results of their gasoline vs. ethanol tests. They ran a battery of tests on a new (2007) flex-fuel Chevy Tahoe, which can run on E85 or gasoline, and found that the SUV’s mileage dropped from 14 mpg to 10 mpg on E85. They went on further to say that the results of this test could be applied to any flex-fuel vehicle, because naturally, ethanol has a lower energy content than gasoline.

Ethanol has 75,670 BTUs per gallon instead of 115,400 for gasoline, which means that you would have to burn more fuel to generate the same amount of energy.

Additionally, if you adjust for the lower fuel economy, it’s also more expensive to fuel up with E85 than with gasoline. The price of E85 was about $2.91 per gallon in August of 2006, so if you adjust for the ~28% decrease in fuel economy, you’re actually paying upwards of $3.90 for a gallon of E85. Compare that to the national average of gasoline, and you can see that the economic attractiveness is not all that great.

But ethanol will lower our dependence on foreign oil… won’t it?

Not so fast.

The government credits vehicles that can run on E85 with about two-thirds more fuel economy than they actually get using gasoline, even though they may never run on E85. For example, the two-wheel drive version of the Tahoe used in the study would normally be rated at 21 mpg. But because it can run on E85, it earns a 35 mpg credit, even though the Consumer Reports shows it achieves 30% LESS fuel economy on E85!

The net effect is that consumers are being lured into buying bigger, flex-fuel vehicles like the Tahoe based on the fuel economy sticker on the window, which is highly misleading.

Couple that with the fact that the majority of the country can’t buy E85, and you’re back to burning straight gasoline…

Sounds like you’re a typical anti-alternative energy guy!

cornNot really. I’d love to be able to stick it to the foreign oil producers like Chavez and Ahmadinejad. To all up and go cold turkey on oil imports would tickle me to death.

However, I think our science in the United States is being driven more by politics than it is by scientific facts. We’ve bought into the ethanol farce in the name of foreign oil and global warming (another scientific farce driven by politics). Now that we’re burning corn in cars, our politicians can gloat that they’re making “great efforts” to curb our dependence on foreign oil and simmer our influence on global warming.

The average misinformed American consumer buys their plight hook, line and sinker.

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Boone on Crude

October 22nd, 2007

On Friday, legendary oilman T. Boone Pickens predicted that oil will hit $100 a barrel, possibly in the fourth quarter, but definitely by sometime next year.

The reasoning behind is prediction is that he believes worldwide demand has outpaced global output of 85 million barrels a day. Consequently, Boone, as a believer in supply and demand (as am I) says oil prices have nowhere to go but up.

“I think you’ll reach $100 (a barrel) before you go back to $80,” Pickens said before speaking at a gathering of the Association for the Study of Peak Oil and Gas at a downtown hotel. “It could happen in the fourth quarter, but you’ll see it within a year.” -Source

The jury is still out though on whether daily oil output has reached its maximum level. The federal GAO reported in March that most studies have found oil production will reach a peak between now and the year 2040.

wind farmIn regards to alternative energy, Pickens is big on wind, although he said that any alternative fuel has a chance to offset petroleum.

You can’t discount Boone Pickens, his history in the oil and gas sector speaks volumes.

I think he’s right, oil will probably see $100 before it comes back to $80, however I believe the 100 dollar mark will be a psychological event that could stimulate a bust in the oil industry.

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