Fuel follies

   / Fuel follies #1  

patrick_g

Elite Member
Joined
Jul 24, 2006
Messages
4,182
Location
South Central OK
Tractor
Kubota Grand L-4610HSTC
I have a couple diesel fuel and foreign oil dependence sort of questions-topics floating around in my head that I'm not quite sure how to express but here goes:

1. I don't understand why diesel fuel which is easier to refine than gasoline is more expensive. Didn't used to be that way. What changed so drastically?

2. Gasohol or ethanol for motor fuel. Pickups are offered with engine options for burning fuel that is 85% ethanol (grain alcohol.) Why do we want to subsidize the ethanol industry with huge $ from our tax money so the corn growers can use more chemical fertilizers (petrochemical dependent) and diesel fuel to plant, tend, harvest, and transport corn as feedstock to the ethanol industry to make motor fuel?

Studies have shown there is little or no net energy surplus in "ethanol for motor fuel" after you account for all the diesel and petrochemicals used to produce it. If our tax $ weren't being diverted to prop up corn-ethanol, the corn-ethanol industry would not make it on its own because it does not produce an energy surplus. It is just a sham.

As corn is used in the ethanol game, corn prices are up and pork, beef, chickens, eggs, milk and so forth are pulled along.

I'm interested in protecting the environment and reducing dependency on foreign oil but the corn/ethanol for fuel industry we are subsidizing isn't doing that and probably never will. Burning a clean fuel like ethanol is a good idea but only if you can produce it while consuming less energy and oil than it replaces. If you aren't coming out ahead, why do it?

I think it is a political charade. Politicians are afraid to make a hard decision that will upset many folks so they subsidize an industry to give the appearance of doing something good while accomplishing nothing and wasting $. Of course the folks receiving the subsidy aren't complaining and give political support to the politicians granting the subsidy. Everybody is happy and no one is hurt except it doesn't lower our dependence on foreign oil and it makes a lot of our food cost more, and it doesn't help the price of diesel.

Using cellulose (plant fiber) for feedstock to produce ethanol is a much better and more sound approach so far as producing a net energy surplus and not negatively impacting so many other commodity prices but is not so far along in development and viability as ethanol from corn technology (essentially a whiskey still.)

Ethanol from cellulose is so much more deserving of subsidy to get it up and running since it has the potential to actually help not just shuffle $ around in an impotent charade of pretense. Switch grass and lots of other feedstocks for producing ethanol are better choices than corn so far as a net energy surplus in the output is concerned. Gasohol/ethanol motorfuel from grass and other cellulose sources would ease demand on oil, reduce diesel prices, food prices, and dependence on foreign oil.

Of course, to expect the political types to actually do the right thing when pretending to do the right thing is so much easier and gets more votes, is probably not realistic.

Sorry if this offended anyone but I think ever increasing prices for diesel, fertilizers and ag chemicals (oil dependent) are marginalizing us small operations. A gal of a particular insecticide this year is $60 for what cost $40 last year, same brand, same concentration, same amount.

Note: I am for clean fuel. But... corn to ethanol is not a viable fuel industry and exists only because of substantial inputs of our tax money to prop it up. Subsidies are not inherently bad but in this case what is the net good to the population of the country? It doesn't save oil, just diverts its consumption and increases out food and fuel costs.

Why do we let the politicians use our $ to buy them votes from the subsidized industry? Especially when in the long run (something politicians don't like to think about as their planning horizon never extends appreciably beyond their next election) corn-ethanol is NOT a benefit. Ethanol from cellulose can be so why not push a potential winner instead of beating a dead horse. The parrot may be beautiful but if it is dead and the only reason it sits on its perch is because it is nailed there then we need to look for another pet. (apologies to Monty Python)

Pat
 
   / Fuel follies #2  
You are right that is it 100% politics and not likely to change soon. Iowa and other states are too important to both parties.

Ethanol from cellulose or other materials is far away from being commercially viable. At least 5 years. And there is a substantial amount of government money being put into research. But there is also a ton private venture capital being dumped in. The potential rewards/profits are huge - think cure for cancer type stuff.

And for full disclosure: I am not a farmer but bought a large parcel of top shelf corn producing land 2 1/2 years ago anticipating the ethanol boom. So between the value of the land skyrocketing and increased rents, I'm doing pretty good. Ethanol isn't all it advertized to be, but I got a family to feed too.

And even with increased rents, chemical prices, seed prices, diesel prices - at $4.00/bushel farmer Steve that leases my land is going to do OK as well. And together we're keeping the land out of developers hands for what it's worth.
 
   / Fuel follies #3  
There's a bunch of southeastern US politicians that either own a bunch of pine forestland or are in the pocket of major pine forestland owners. From what I gather, they've got some pretty major research funding and top scientific minds/institutions working on ethanol from cellulose. It may not take five years for it to be commercially viable!
 
   / Fuel follies #4  
Everyone keeps saying Diesel is more that gas, yesterday I went by a station and gas was $0.70 higher that diesel, here in Kaulifornia
 
   / Fuel follies
  • Thread Starter
#5  
Kendall69 said:
Everyone keeps saying Diesel is more that gas, yesterday I went by a station and gas was $0.70 higher that diesel, here in Kaulifornia

Kendall69, It is possible to flip 10 heads in a row but it isn't the usual result. Were there other stations with cheaper diesel than gas? Was the station open? It is amazing how many closed stations with OLD prices posted draw people in to find the place closed. I don't think your observation is typical, more likely a relatively rare anomaly. Of course, we can all remember (OK, well most of us) when diesel was ALWAYS significantly cheaper. After all it is cheaper to make than gas, what is the deal?

Asymtave, I don't mind you feeding your family or farmer Steve either. That doesn't mean I don't regret the climate that created the artificiality on which your largess is based. I would be more tolerant of the situation if it wasn't based on BS, fooling the public, pretending to do something useful, squandering funds better invested for the long haul in something much better when ready for prime time (cellulose based alcohol.) Corn-ethanol is not helping and can not be developed in such a manner that it will help with the oil crisis given the energy inputs are approximately equal to the outputs. It is political BS, a means of making the majority of non-thinking voters (is that redundant?) think the politirats are doing something useful while actually it is redistribution of wealth to benefit the politirats and there hired voters.

Again I don't blame you or farmer Steve for stepping into a LEGAL situation and profiting from it and I congratulate you on your foresight, gumption to speculate, and your earned success but I curse the children of unmarried parents who created your opportunity not only for just buying votes while pretending to solve a problem but to divert $ that could be better invested in long term solutions such as cellulose to alcohol for fuel.

If you had guessed at the destruction of Katrina and in advance cornered the market on caskets I'd be happier than to see the misguided corrupt system in place gain from the use of your capital.

Tell you one thing, if things keep going the way they are, it's going to be impossible to buy a week's groceries for $20."


Pat
 
   / Fuel follies #6  
In Oklahoma Diesel and Gas just reversed themselves on which is more expensive, Gas was $.30 to .35 cheaper. At my last fill up Diesel was $.10 cheaper. Years ago gasohol was sold but did not require any special labeling unless there was more than 10% alcohol in it.

The ethanol is not energy efficient right now since it takes more than one gallon of fuel to produce one gallon of alcohol.

Plus around here the demand for corn in the ethanol production has driven feed prices up so we will be paying more for milk, cheese, and beef.
 
   / Fuel follies #7  
Diesel is $0.30 cheaper than gas in this part of Kaulifornia
 
   / Fuel follies #8  
My understanding is that at one point gas was cheaper to refine than diesel. Was being the key word. When 500 PPM LSD fuel hit there was a price increase and with the last 15 PPM ULSD fuel there was also another price increase. The refining process of diesel fuel has had to be overhauled over the years to lower it's enviromental impact which has driven the price up.

Another thing to consider is the ever growing use of diesel fuel. More use, more demand = higher price. In the refining process there is more gas to be had than diesel. On average out of a 42 gallon barrel of crude (of which you get about 44 gallons of product) there is:

Finished Motor Gasoline 51.4%
Diesel Fuel, Heating Oil 15.3%
Jet Fuel 12.6%
Still Gas 5.4%
Marketable Coke 5.0%
Residual Fuel Oil 3.3%
Liquefied Refinery Gas 2.8%
Asphalt and Road Oil 1.9%
Other Refined Products 1.5%
Lubricants 0.9%

So for each barrel you get about 20 gallons of finished gas and 7 gallons of finished diesel fuel. Another thing to note is that you only get about .9% by volume of lubricating oil out of an entire 42 gallon barrel crude. One reason gear/motor/hydraulic oils have gone up.
 
   / Fuel follies #9  
We have no one to blame but ourselves. If you keep voting in members of the usual two parties you'll keep getting the same corrupt people. Vote independent! I know I sound like a broken record but until WE stop this cycle of corruption there will be no end to it. Next time vote for the independent candidate. That is the ONLY power we have and the ONLY time we can use it. Once someone is in office, they do whatever they want to do.

Yes, ethanol is a sham along with hydrogen.
 
   / Fuel follies #10  
Joerocker, I disagree, The most efficient way to produce hydrogen is by electrolisis. Hydro electric plants operate most efficiently at full power,and most plants only need all that power a few hours per day. Use it the rest of the time to produce hydrogen and you get a good fuel for a small cost. Use that fuel in an internal combustion engine and the waste product is H2O. Use it in a fuel cell and you get even more efficient use of the fuel.
 

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