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VeraSun Energy Corporation Q2 2008 Earnings Call Transcript
“You can see that at the end of last year, our ethanol industry was producing more fuel than five of the eight OPEC countries including Iraq. The industry is currently producing at an annual rate of about 9.4 billion gallons, which makes it larger than Nigeria and Venezuela.”
Thank God there is still some competitive fight left in America.
Growth in Corn Harvest Means Good News for Ethanol Producers
Majority of Americans Support Ethanol
Don't you wonder where all these people with wild ignorant statements with nothing to back them up come from? Are they being generated by some hacker?
Ethanol Will Become a Fad Without Government Intervention
www.ncga.com/public_po...
The conclusion was that it takes 740,000 Btu of all fossil energy to create one million Btu of ethanol. It takes 1,400,000 Btu to obtain one million Btu’s of gasoline from petroleum. Total fossil energy includes the natural gas and coal equivalent of electricity as well as petroleum. It takes only about 1/8 a unit of actual petroleum fuel to create a unit of ethanol. That is primarily in operating the farm machinery and transportation.
In view of the fact that our primary problem is the import of petroleum this is very favorable. When biodiesel is more readily available, this will get even better.
Ethanol Will Become a Fad Without Government Intervention
Business Week has recently published an article with a few facts that everyone who feels strongly enough to post on the subject should read.
www.businessweek.com/m...
VeraSun Energy and the Ethanol Debate
The critical national requirement is to replace imported petroleum with a domestic product. It takes only about 1/8 gallon of petroleum product to produce one gallon of ethanol from corn. This is all in transportation and running farm equipment. As more biofuels are used this can be improved even further. The statement that it takes 1.5 gallons of oil to make a gallon of ethanol is completely erroneous.
The total fossil fuel use includes natural gas and the coal equivalent in electricity as well as the petroleum used. That is the source for the still favorable .74 Btu/unit for ethanol and 1.23 Btu/unit for gasoline. As the author points out, however this is not nearly as important as the large amount of petroleum product replaced.
All this is very straightforward from the technical perspective but apparently very confusing to the main steam media.
It's Now 'Official': Ethanol Is a Scam
To make it worse there is not even a mention of the favorable results already reached in 2007; i.e. the reduction in oil imports because of the over five billion gallons of ethanol fuel created and the savings in grain subsidies due to a rejuvenated agricultural sector. All the author and his reference offer are imaginary anecdotes in which a fivefold increase in petroleum fuels cost are not mentioned yet the current small amount of biofuels are blamed for everything imaginable. There is no mention of the cost of doing nothing- like the complete destruction of our economy due to a half trillion-import cost of petroleum.
It is also amazing how many people feel that reading misleading headlines qualifies them to repeat the misinformation. You really have to dig a little behind the journalistic opinions to contribute to an intelligent discussion. I suggest your read “Energy Victory “by Bob Zubrin as a starting point.
The Case Against Ethanol
In 2007, the ethanol industry alone provided the following benefits to the nation:
• U.S. Production and use of 6.5 billion gallons of ethanol in 2007 displaced the need for 228.2 million barrels of oil at an estimated value of $16.8 billion with the accompanying benefit to the United States trade balance.
• The Federal government received 4.6 billion in sales taxes against an expenditure of $3.4 billion in incentives. States received an additional $3.6 billion in taxes
• The rejuvenated agriculture community allowed the Government to reduce subsidy costs for farm programs by an estimated $8 billion
• Helped support the creation of 238,541 new jobs, more than 46,000 of which are in the manufacturing sector;
• Increased the Gross Domestic Product by $47.6 billion
• increased household incomes by $12.3 billion
This contrasts with the effects of continuing the existing status that is crippling the US economy through massive imports.
And what about the tremendous advances occurring because we are using two of the countries basic tecnological strengths? biotechnoloy and agriculture.
Please read Energy/Victory by Zubrin before you reach post again
Some Thoughts on Ethanol's Success