Big Oil Stalling Drive to Ethanol
Posted: September 27, 2007
This may not come as news to those of us close to the ethanol industry, but it is amazing to see a major business publication take the oil industry to task for fighting E85.
An October 1 article in Business Week entitled the “Big Oil’s Big Stall On Ethanol” claims that oil companies “seem determined to fight the spread of E85, a fuel that is 85% ethanol and 15% gas.”
At the same time the industry is collecting a 51 cents-per-gallon federal subsidy for each gallon of ethanol it mixes with gas and sells as E10 (10% ethanol and 90% gas), it’s working against the E85 blend with tactics both overt and stealthy. Efforts range from funding studies that bash the spread of ethanol for driving up the price of corn, and therefore some food, to not supporting E85 pumps at gas stations. The tactics infuriate a growing chorus of critics, from the usual suspects—pro-ethanol consumer groups—to the unexpected: the oil industry’s oft-time ally, the auto industry.
This is a very interesting article that makes many of the points the ethanol industry has been saying for months now. There is also a comments section for it - provide some feedback!
kum dollison Said,
September 28, 2007 @ 3:32 pm
That 25% number it very misleading. It totally ignores E85’s 105 OCTANE RATING.
Why do so many “premium” grades contain 10% Ethanol? It’s because under higher Compression ethanol delivers virtually the same mileage as gasoline. I think it’s safe to say that most people get approx. 15% less mileage with E85.
kum dollison Said,
September 28, 2007 @ 5:35 pm
Oops, wrong thread. That was in response to the news that AAA’s website, fuelgauge.com had declared e85 twentyfive percent less fuel efficient.
Sorry.
John Shivers Said,
September 30, 2007 @ 9:05 am
Is it any surprise that big oil is fighting ethanol?After all,they are in business to sell oil not ethanol. As of 9-30-07 there is not a single gas station in New Jersey selling E-85
I have asked the Govennor personely if he supports ethanol. He told me he supports ethanol. But,we still do not have E-85.
I’m doing what I can to promote ethanol,but,it is hard to change the way people think.