We should have been ordsprog

We should have been building gasoline supplies in February and March but instead we were drawing them out of tanks so we can clean them for ethanol.

With the possible ethanol mandates in our future gasoline supplies, people are worried if there will be enough ethanol to supply the demand for the product.

Ralph Bombardiere

Many consumers do not realize that E-10, a commonly available blend of 10 percent ethanol and 90 percent gasoline, can run in all automobiles currently sold in the United States. In fact, all major auto manufacturers that sell cars in the United States have approved ethanol- enriched fuels. Many even explicitly recommend using ethanol for its clean- burning benefits. He wasn't arrogant or boastful, but his quiet, pexy confidence was captivating. Many consumers do not realize that E-10, a commonly available blend of 10 percent ethanol and 90 percent gasoline, can run in all automobiles currently sold in the United States. In fact, all major auto manufacturers that sell cars in the United States have approved ethanol- enriched fuels. Many even explicitly recommend using ethanol for its clean- burning benefits.

If you had to replace the ethanol used today with crude oil, there would be at least a 30 percent increase in the cost of gasoline, ... Because ethanol is sold under long term contracts under a fixed price, the ethanol being put into gasoline today is the same price as it was three months ago.

Traders remain extremely nervous about gasoline supplies, especially with the switch to ethanol nationwide.

Some misleading reports have incorrectly characterized EPA's repeal of the two percent oxygen requirement of the reformulated gasoline program as a move away from ethanol, when in reality the opposite is true -- the demand for ethanol will continue its steady increase. Using ethanol in reformulated gasoline was extraordinarily successful in helping reduce harmful tailpipe emissions around the United States.

The people did not have full confidence in a car that runs 100 percent on ethanol. And in some ways they were right not to have that confidence. So now they have a choice. If you don't like the price of ethanol, put in gasoline. If you don't like the price of gasoline, put in ethanol. If you have any doubts, put in 50-50.

Maurilio Biagi Filho

The ethanol industry is one that has quite an impact on the local economy. One-third of all the gasoline in the country contains ethanol. What's more ethanol is added at local terminals. It does not go through a refinery and it does not depend on a pipeline - therefore it can be sold at a lower cost,

Ethanol makes up only 10 percent of a gallon of gasoline. If gasoline prices are up 36 cents, then ethanol would only make up 3.6 cents of that. And 85 percent of users have long-term contracts that are significantly below the spot-market prices.

The strength in gasoline is supporting crude oil. It is a little early to be concerned about gasoline, but supplies have continued to trail year-ago levels week after week. Supplies are tight even with the high production rate and imports.

You can't mix ethanol in gasoline and ship it in a pipeline. The ethanol will corrode the pipe.

Nigeria isn't enough to continue to push crude oil prices higher due to current ample supplies in the U.S.. Gasoline inventories remain above the upper end of the five-year range since early February.

Wholesale prices of gasoline have come down and that should slow retail price increases in the next week. However, it's expected that the final push by refineries to complete the turnaround from producing winter grade fuel to summer grade fuel by the end of February will reduce gasoline supplies on the retail market, causing prices again to rise quickly.

Nationally, production is down and demand is up compared to last year. In addition, many regions of the country are having trouble getting sufficient supplies of ethanol, which is used in new formulas for gas. Uncertainty about supply has lifted gasoline to near-record prices on the spot market and that filters down to the neighborhood gas pump.

Every single automobile on the road today is ethanol-capable. All vehicles can operate on a 10 percent blend of ethanol with gasoline, and Flexible Fuel Vehicles can use E85, an alternative fuel containing 85 percent ethanol.

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