Does anyone realize that one could make ethanol out of wood chips, grass, and a wide variety of products? Should not it therefore be abundant? Did anyone know that there is a reason ethanol is found to be so lacking and expensive to produce today? Under the Clinton administration, Archer Daniels Midland Company successfully lobbied the government in order to require that ethanol be made from corn alone. Not only does this severely limit production, but it is further limited by the fact that ADM has a near monopoly on corn based ethanol production. Monopolies traditionally keep supplies lower then they would be on the market demand curve, as they are simply seeking a point where marginal revenue equals marginal cost. Even though ethanol is the same chemical composition regardless of where it is made, we are only limited to being able to produce it from corn and we waste billions a year in lost production just to fill the pockets of a few politicians and farmers with an amount much smaller then the amount society as a whole would enjoy. This is what is known as excess burden.

Gotta love this system we have going for us, no?

It's Bush's fault! Democrats care about the people, and it's always Bush's fault.

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Cheney is the second executive officer to shoot someone in the face and chest. Clinton was the first.

One of the reason is that agriculture has become a huge corporate industry, it size and impact on the economy help it to influence public policy. The last reason is that ethanol is expensive and very corossive for cars. Inorder to retrofit a car to run on ethanol you have to have special insulation material for the car which is expensive and heavy. It is only practical on public transporation.

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In the land of the blind, the man with one eye is the king
- Nas

Money rules both of our parties. When it comes to these corporate policies, we are, in effect, a one-party system.
I personally can't think of a reform that could change this without other side effects we wouldn't like... other than maybe greater transparency, however we can manage that.
One thing's for certain. It's not as simple as party lines. People really need to start paying attention to individual politicians and punishing them for stuff like this...
But most people just vote for the incumbent, typically on their usual party-line vote.
Until Americans start spending more time looking into this stuff, don't expect anything. But then again, can you blame 'em? It's not rational to spend so much time worrying about politics when you've got a family to feed.
That's politics for ya, paradox after paradox.

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"Man lives in the sunlit world of that which he believes to be reality. But unseen by most is an underworld, a place that is just as real... but not as brightly lit... A DARK SIDE!"
-opening from Tales From the Darkside

Every summer the prices go up. Why? Because our unbelievable environmental laws force the refineries to adjust their mix and make costly and time-consuming changes:

"The U.S. motor gasoline market faces two new challenges this year: the final stage of the phase-in of the Environmental Protection Agency’s (EPA) Tier 2 gasoline program, which began in 2004, and the phase-out of MTBE as a motor gasoline blendstock. While the final transition to Tier 2 gasoline is not expected to create significant problems for domestic refining and distribution, the more stringent Tier 2 gasoline sulfur restriction could constrain the ability of foreign suppliers to quickly respond to unexpected local supply disruptions or demand shocks. The phase-out of the high-octane and low-vapor-pressure MTBE blendstock could prove more problematic, as fuel ethanol becomes the primary substitute for MTBE. "

http://www.eia.doe.gov/emeu/steo/pub/contents.html

YOU asked for it: so live with it.

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"This is a time for a national imperative not to fail in Iraq." Condoleeza Rice, January 11, 2007

"Continued steady world oil demand growth, combined with only modest increases in world spare oil production capacity and the continuing risks of geopolitical instability, are expected to keep crude oil prices high through 2006.

The price of West Texas Intermediate (WTI) crude oil is projected to average $65 per barrel in 2006 and $61 in 2007 (Figure 1. West Texas Intermediate Crude Oil Price). Retail regular gasoline prices are projected to average $2.50 per gallon in 2006 and $2.40 in 2007 (Figure 2. Gasoline and Crude Oil Prices). Summer (April 1 to September 30) regular gasoline pump prices are expected to average $2.62 per gallon, 25 cents higher than last year's average of $2.37 per gallon. Retail diesel prices are also expected to average $2.62 per gallon this summer.

World oil market conditions, growth in U.S. demand, and ongoing implementation of domestic fuel quality requirements are expected to keep consumer prices for motor fuels and other petroleum products high in 2006.

Higher crude oil costs together with higher margins (retail price minus crude oil cost and taxes, per gallon) are also expected to contribute to increases at the pump.

Higher gasoline margins are likely because: 1) gasoline consumption is expected to grow solidly following weak growth in 2005; 2) Tier 2 gasoline requirements mandate further reduction in sulfur content this year; and 3) phase-out of methyl tertiary butyl ether (MTBE) from the gasoline pool is likely to put significant pressure on ethanol and gasoline prices. Higher diesel fuel margins are expected because of the additional cost of producing ultra-low-sulfur diesel fuel later this year. "

So....it's about "supply and demand." AND it's about all these "environmental fixes" that are costly.

That's why I don't want to hear the lefties complain. They want the environment protected no matter what the cost. So:......LIVE WITH IT. And SMILE!!

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"This is a time for a national imperative not to fail in Iraq." Condoleeza Rice, January 11, 2007

The Toyota Prius is about 3,000 more then a normal car, but it has zero emissions. The Corolla is also a very inexpensive car, and it has incredibly good emissions. If you live in L.A., or any major city these days, it would be insane without this type of protection. The smog levels are bad enough as it is. In the long run, the funny thing is--environmentalist policies SAVE money. It costs money to burn fuel inefficiently, and the only way to really stop pollution is to make a more efficient car, so I support these policies. They are the main reason cars have developed as fast as they have.

Also, as far as ethanol is concerned, it does require a special engine, but it is not that much more expensive then a normal engine. Actually, most new cars today are made for ethanol by default. They can burn both. Why this is, I am not sure, since the production has been hampered by Clinton and the Dems, as well as the right, but there you have it.

Finally, as far as supply and demand of the oil market are concerned, the oil market is an oligopoly; and not a very competitive one at that. Half of production comes from a cartel for God's sake, and the other half comes from three or four very large corporations. When the market is that small, it doesn't make it hard to "collude" just based on watching the market of your competitors. It has really gotten to the point where one will raise prices slighly, and the other will follow just a little bit more, because, let's face it, consumers don't drive the extra block to save 2 or 3 cents a gallon. The business has more incentive to set the price higher. There is proof that this is occuring because:

a. production is higher then ever
b. Prices are higher then during Katrina (anyone realize that oil rigs are hurricane proof to begin with? Just watched something on Discovery Channel, made me laugh).
c. reserves are above normal
d. corporations are making rapid profits.
e. quantity demanded is falling (less SUVs are being sold)

As far as China is concerned, they have not affected demand enough in such a short period to drive oil prices up nearly 50%. China has grown gradually, and oil production has increased through their major supplier--Iran, and Russia. New pipelines are being build just for China. For instance, we just have seen a price spike over the past couple of months that has raised gas prices .60 a gallon when it was already well above normal. Did China suddenly grow by 6% in a month? Come on now.

Another thing I would like to point out is that you can produce ethanol out of lawn clippings and paper for that matter. How much of this is thrown away every day, thanks to the Clinton administration? A lot of people could power their cars off the fuel they throw away every Saturday afternoon. I'm sure I could make about 3 or 4 gallons a week off my personal "garbage" alone. Oh, but let's instead focus on fuel cells--the most far off concept possible. And then, let's only spend a couple billion dollars a year in "development."

Anyone that thinks oil is supply and demand has GOT to be joking.

Somebody had it right when talking about ethanol. Ethanol CAN be beneficial if the energy to produce is less than the energy provided. The problem is that corn barely makes the cut. Brazil can fly high because they make ethanol out of sugar cane, which is highly efficient. We could do that too, except that we have put the corn lobby over the sugar cane lobby ( a pox to both parties) Of course, when you have a dumb and dumber President, what do you expect?

excellant example. Most people don't even realize they are energy independent.