On 4/27/05 15:49, "Gnarlodious" <gnarlodious@EARTHLINK.NET> wrote:

> 
> The bottom line IMHO? It's virtually impossible to pricefix when the raw
> material is coming from corn and soybean farmers, windmill and solar farms
> and cottage industry refiners.
> 
> -- Gnarlie
> 

A program on last week that was covering the laws of supply and demand on
fuels covered a part of a paper that a masters candidate had written on
soy/corn based fuels.  The price for those fuels would be higher at first
than petro and then cheaper as technology and supply channels came on line.
But then it would climb again as demand would then start to outrun the
supply as federal rules requiring 20 percent or higher mixes kicked in.

BTW  BP and Chevron are two of the leading researchers in biofuels.  They
both predict that diesel could be commercially available in the general
market with a bio base in about 5 years.  Right now there just arent enough
vehicles on the road capable of using the newer fuel to make it cost
effective.  Most euro diesel engines are capable but many of those same
engines in the US market are not.  VW and Mercedes have both done extensive,
and ongoing, testing of bio blend fuels for gasoline and diesel.  Most VW
argentine and brazilian vehicles are 20 percent alc/gas capable right now.
Ford Brazil vehicles are also in the same category.

There is discussion right now of changing the mandatory alcohol level in
fuel up, but the danger is that it is the MTBE group that seems to be
winning.  Even with it being banned in several states.  Some people I
correspond with believe we will see 15 percent alcohol gasoline in the next
two years.  What this is going to do with vehicle warrentee that only cover
10 percent max alcohol is going to be interesting.
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jimt
Planned insanity is best.
Remember that sanity is optional.
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