Trust the U.S. Government to reveal the foolishness of ethanol – by converting to it. From a commodities newsletter issued by a major investment bank:
Can a $1.00 US First Class stamp be far away?
Bberg–The U.S. Postal Service purchased more than 30,000 ethanol-capable trucks and minivans from 1999 to 2005, making it the biggest American buyer of alternative-fuel vehicles. Gasoline consumption jumped by more than 1.5 million gallons as a result. A Postal Service study found the new vehicles got as much as 29 percent fewer miles to the gallon. Mail carriers used the corn-based fuel in just 1,000 of them because there weren’t enough places to buy it.
Now wait a minute. A purchasing manager went out and bought 30K vehicles without checking the mileage differential between an E-85 vehicle and an E-10 or E-15 vehicle while also not checking on an adequate input supply chain? Are we the only ones on the planet that know that Ethanol returns 30% lower mileage than gasoline while Diesel returns 30% higher than
gasoline? E-85 is what, 50 cents or 12 1/2% lower than the price of regular gasoline and Diesel is what 50 cents, or 15% higher than the price of Gasoline? Rough numbers I know, but if I’m buying a vehicle that costs 10 to 15% less to fill up to get a 30% lower return, my math tells me I’m still at least a 15% loser. Conversely, if I buy a vehicle that costs 15% more to fill up but get a 30% better return am I not still 15%? Again, very rough numbers I know but you get the point.
You just can’t make some of this stuff up. I’m with T. Boone, ethanol’s a joke.