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I beat Big Oil (for today at least)

10 posts
  1. Melvin Waldron
    Melvin Waldron avatar
    43 posts
    1/5/2012 10:01 AM
    I thought this might be an interesting topic for discussion.

    I noticed at a couple of gas stations yesterday that prices jumped from $2.89 to $3.17. After picking up my son from mallet lessons, I noticed none of the other stations had raised their price. I heard that the price was going up because of the ethanol subsides were not going to be extended. Well this morning I still noticed prices at $2.89 at gas stations coming into work. I decided to go fill up after I went to the local chemical distributor, (just a block away) that I would fill up then, (heck just got paid, better fill up) after leaving the distributor, the one station had raised their price, so I took off toward the nearest Kum and Go, they had raised their price, and then the Casey's, finally at the Eagle Stop, they were still at $2.89 so I filled up.

    Ok after my boring story about me beating the oil company for a day, what's every one's thoughts on not extending the ethanol subsidy? In my opinion on one hand, I'm glad my tax money is not going to subsides the oil company that is making billions, although it probably hurts my pocket book more because they are passing the cost on to me. Could this hurt the economy more then if they would pay the subsidy? Is there good reason for the subsidy? Are their subsidies that make sense, (and this could be in any industry) such as upgrading equipment, or for product research, etc.

    I''m a simple bumpkin so I will be interested in others thoughts.

    Mel

    Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO

  2. Andy Jorgensen
    Andy Jorgensen avatar
    1 posts
    1/5/2012 12:01 PM
    You are right, the subsidy went bye bye on January 1st. It was something like $.06 / gallon. Where do you think the subsidy came from? Our taxes. You were paying for it all along. We switched over to non-ethanol here at work just before the 1st of the year for the same price that we would be paying for the ethanol, but without the headaches. We were having too many problems with the ethanol, but the repairs were nowhere near the savings. Now that they are both the same price, we went back to conventional unleaded and won't have the repairs to deal with.



  3. Spotts David A
    Spotts David A avatar
    1/5/2012 1:01 PM
    I wish I could get non-ethanol. In my area there is no one that carries it anymore. I think they should get rid of it because unless I'm missing something, It doesn't affect the price much, everything runs crappy on it, and it pushes up the price of corn which pushes up groceries. Every time I go food shopping there's another increase. Soon I won't be able to afford 9-Lives and will have to eat off the dollar menu at Mickey D's and then watch health insurance go up even more.



  4. Jon Gansen
    Jon Gansen avatar
    1 posts
    1/5/2012 4:01 PM
    The ethanol subsidy was 4.5 cents per gallon at the pump, blenders got 45cents for every gallon blended. Iowa currently has 40 ethanol plants, a lot less than they were talking years ago when they wanted one in each of the 99 counties.
    Corn has gone from 1.25 a bushel a few years ago to over 7.00-8.00. This has really made a difference in the big farms considering they can get 170 to over 200 bushels an acre. This subsidy has a double edge sword. Its great for the ag industry as a whole, its clean (except for the millions of gallons of water used in the process)
    Right now they say 10% of fuel in USA is ethanol. But high corn price, land price= higher beef, pork and any other corn consumer. There is a lot of talk on switching to bio mass, switch grass corn stalks etc. Really I can say what I believe good or bad. One thing is Iowas unemployment rate is 5.7% which isn't all bad and that usually ties in with how well ag business is doing.

    Andy, I cant believe (I do thou) you have had problems with the 10% blend. I am mandated by the state to use it at Highland (municipal). I have had no problems. 1970 John Deere all the way down to the weed eaters.
    I use it in my snowmobiles, motorcycle and everything gas at home no problem.



  5. Andy Jorgensen
    Andy Jorgensen avatar
    1 posts
    1/5/2012 6:01 PM
    Jon Gansen said:

    Andy, I cant believe (I do thou) you have had problems with the 10% blend. I am mandated by the state to use it at Highland (municipal). I have had no problems. 1970 John Deere all the way down to the weed eaters.
    I use it in my snowmobiles, motorcycle and everything gas at home no problem.


    The first day we switched, we had issues with fuel filters and fuel pumps in our fleet of Ford F-250 and Ranger trucks. Some needed multiple repairs before they were fixed. Although we have filters on our tanks, the ethanol cleaned the tanks on the truck releasing the built up sediment. Other makes and models weren't affected. It's also caused issues in our two cycle equipment. Ring issues, fuel lines getting soft and bursting and lots of fouled plugs. The ethanol allows the water to blend, instead of settle out. We have lots of humidity in Florida, and a half-full tank is asking for trouble. We were treating our two cycle mix fuel tank with an ethanol treatment before switching entirely over to non-ethanol. We had no choice at the time as our supplier quit carrying the conventional fuel. We had to switch suppliers to get rid of the ethanol.

    I run, because I have no other option, ethanol in all my stuff at home as well, including my boat. The difference is the amount of use. At work, our equipment runs non-stop, all day long. At home, we might use something for only a few minutes. I don't think we would notice the issues as quick simply due to this fact. Being in Florida, marinas have kept the non-ethanol around as it is much better to run in a boat than the ethanol, but charge excessively for this.

    Trust me, I know first hand about the corn prices. I am a stock holder in a company that owns several banks in Ames, Des Moines, Story City and Boone. My stock dividends have increased. I can't complain. A good year for corn is a great year for me.



  6. Sandy Clark
    Sandy Clark avatar
    0 posts
    1/6/2012 9:01 AM
    Jon, are you sure about the cleanliness issue? Everything that I have read and heard is that ethanol is just as bad a pollutant, just in a different form. Maybe we can end the subsidy of electric vehicles and let them compete on their merit if there is any. The true cost of making a Chevy Volt is really high. People would never buy one without massive government subsidies.



  7. Jon Gansen
    Jon Gansen avatar
    1 posts
    1/6/2012 11:01 AM
    Sandy Clark, CGCS said: Jon, are you sure about the cleanliness issue? Everything that I have read and heard is that ethanol is just as bad a pollutant, just in a different form. Maybe we can end the subsidy of electric vehicles and let them compete on their merit if there is any. The true cost of making a Chevy Volt is really high. People would never buy one without massive government subsidies.


    No Im not. It was meant to be a kinda of play on words. Reading it back it sounds like its the next great thing.
    These plants use huge amounts of water (is it worth it) One thing I should have touched on was how much energy it takes to produce this energy?? Is the economic impact deem this subsidy good? I dont know, I see a lot of jobs created in the ag industry and money being made in the way of jobs and commodity prices and taxes paid in. But how bout the prices of food that is corn based. Is that increase from corn price or mainly gas and diesel for shipping and processing. One thing for sure the farmers no longer, with the price of corn and soybeans, receive subsidies for low commodity prices. How does all this offset? But since the goverment is involved it makes me think its not good.



  8. Clay Putnam
    Clay Putnam avatar
    33 posts
    1/7/2012 8:01 AM
    Melvin Waldron, CGCS"]

    ...so I took off toward the nearest Kum and Go,...

    You went where?


    I''m a simple bumpkin so I will be interested in others thoughts.

    Careful with that word (highlighted) Mel. I had to take a double take at first.



  9. Melvin Waldron
    Melvin Waldron avatar
    43 posts
    1/7/2012 10:01 AM
    Clay, that is one of the big c-stores here, Casey's is another along with Rapid Ripoff, I mean Rapid Roberts, (it is actually are favorite here in our little town of Battlefield, Kum and Go is a favorite in the summer because of the $.59 cent 32 oz. drinks.

    I have to amend my first post, read this morning in the paper that the rise in price was from Iran's sabre rattling. It doesn't change my question on the importance, reliance, good, bad of subsides. Of course talk of Iran and what we are doing on the defense side, would be another good topic too.

    Mel

    Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO

  10. McCallum David K
    McCallum David K avatar
    1/10/2012 6:01 AM
    Normally January and February are the lowest usage months for gasoline. With that in mind it will interesting to see if gas prices continue to climb if comsumption falls as it normally does. Crude going for $ 101.31 at the close of business on Monday. We make good money at $75 a barrel and lots & lots of money at $ 101 a barrel.



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