Join Date: Dec 2001
Location: Belleville, Illinois
Thanked 22 Times in 17 Posts
Re: How low will it go?
At Costco in St. Louis they were selling regular for $1.99.9 yesterday.
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E-20 will run fine in all gas vehicles and reduce our dependance on foreign oil by 20%
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Maybe. Maybe not. There have been seemingly respectable university studies conclude that it takes as much as 20% more energy to produce alcohol from grain than is in the alcohol produced. I certainly don't know whether that's true or not, but it seems as likely to be correct as the claim of 20% savings of imported oil.
What I am very sure of is that if it were economically feasible (meaning profitable) to produce alcohol for fuel on a large scale, businesses, including oil companies, would be scrambling to do it, and government subsidies and guarantees wouldn't be needed. And if alcohol were cheaper to buy than gasoline, drivers would switch to it in a heartbeat.
Here in farm-state Illinois, alcohol is heavily subsidized for motor fuel, both directly and with a cut in road-use taxes. There was an article in the local fishwrapper a few weeks ago about a station starting to sell E80. Great News! Cheap Fuel! was the slant of the headlines. The article stated the current prices for regular and E80. I don't remember what they were, but I calculated that the E80 was about 10% cheaper. Near the end of the article it mentioned that alcohol contains about less energy, so your mileage will go down by about 20%.
Maybe they'll eventually figure out how to produce alcohol more cheaply. When they do, I'll buy it.