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Wednesday, March 22, 2006

GASOLINE TO SKYROCKET THIS SUMMER?...THIS TIME WE DESERVE IT!...

I'm sitting here wondering after all the years I've been monitoring pricing,why analysts are basing futures gasoline pricing on a simple fact that there's not enough ethanol on the markets...
There's plenty of gasoline coming into North America.
According to the US Energy Information Administration,imports of fuel are way up compared to last year at this time and gasoline supply sits slightly higher than where it was.
Market speculators are saying right now that the fear of lawsuits from the use of an additive called MTBE (Methyl Tertiary Butyl Ether) a known carcinogen and the ruination of the Santa Clara California water supply,in gasolines as an oxygenate,is forcing the oil companies into doing something that they should have done a long time ago-be environmentally friendly.
Ethanol,an alchohol by-product in the fermenting of corn,has been known now for a long time to be an acceptible additive to replace MTBE in fuels and has been known as such for almost 30 years.
Plenty of time has gone by for "Big Oil" to come to it's senses...
Or,is it "It's cents's"?...
Now a "motivator" in this summers upwards movement in prices,the ethanol industry in North America is set to boom and "Big Oil" is set to take advantage...
While doors may be starting to open for places like Newfoundland and Labrador for farmers to get into another possible industry or sideline,the simple fact remains that everyone has known for a long time that ethanol would be replacing MTBE as an additive and everyone just might be responsible for the "shortage" of gasolines we are told we might be facing this summer.
We as a people should be charging our governments with the mandate to ensure adequate supplies of ethanol in the future...
We let "Big Oil" have this round...
Pardon the pun but,it does sound "corny" doesn't it?...
Seems the only place that might have been ready for the production of ethanol was the state of Iowa who,as a necessity,came forward with a varitible side industry for corn because it simply grew too much of the stuff.
With the waning days of MTBE before us,let's hope Iowa can grow a heck of a lot more!

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