jauna asked: I so yesterday on news that
Brasil produce enaugh
ethanol to sell to USA for 54 cents a gallon!!! So far USA is not buying
ethanol from them. I am wondering, how long is going to take our
goverment to correct oil prices.
Caffeinated Content
Tags:
Brasil,
Ethanol,
Goverment
Brasils oil isn’t that sweet sweet crude that comes from the Arab regions. Due to it’s poorer quality it requires less refining, meaning, more money to refine it. That increased refining cost will be seen in 2 ways, either less profits for big oil (not going to happen) or increased consumer cost (definately would happen).
1) Our government doesn’t set oil prices.
2) We are dealing with an issue of dependency. We are dependent on other countries for our oil. Why become dependent on someone else?
3) We need to be focusing on alternaltive fuels / technology so we are no longer dependent.
4) Biofuels are the way to go!
It’s just that most folks up here in Los Estados Unidos don’t realize a car will run on ethanol and that the import tax would raise the cost we might import from our Portuguese-speaking Brazilian friends substantially. And – a number of us have fallen for oil company lies that suggest using ethanol in our cars is somehow bad for our health!
Do you have any idea how much it would cost to drive to Brasil to fill up?
Right now trends are changing, but it has nothing to do with the quality of Brazilian Oil like one individual claims. Ethanol is made from sugar cane and can be used as an additive to fuels to increase octane ratings. It’s also used to fine tune octane ratings so a reliable octane rating can be offered at the pumps.
Ethanol is a type of alcohol made from various types of high sugar bio products. Brazil is now the worlds largest supplier of this product because of their vast sugar cane fields.
There was the opinion that using bio additives like sugar cane ethanol, would fund and thereby empower producers of bio fuels. However this ideology seems to be running its course.
Already US buyers have started buying foriegn Ethanol (most notably from the Brazilian refineries) because it is so cheap that is reduces costs and increases profits for the oil industry.
Smaller brand oil suppliers have already shifted gears to increase profits. They are using these increased profits to make a run on mostly US and Canadian based oil resources that are as of yet, untapped.
Contrary to popular opinion, there are large untapped oil reserves in North America and around the world. Advances in geological surveying techniques have greatly enchanced the accuracy of assaying perspective oil sites. This has lead to a rush for smaller oil companies to use thier new found liquidity to increase their holdings and assest, thereby greatly increasing thier mid and long term profitability.
Now that there is good enough reason for people to buy, people are buying. Just not the much larger companies, who still have to take longer to turn thier business model. Much like the difference in the size of ships. The larger the ship, the larger the turning radius.
It’s all quite normal.
David Randall
413-265-9553
p.s. don’t be in too big a hurry to have our Brazilian neighbors too eager to plant more sugar cane. It comes at the expense of rain forest, and we don’t need a faster green house effect just now.
With that said, Brazil will have little problem finding huge new markets in the near future.
their gas sucks
Dennis T: LMAO