Re: Oil Companies...


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Posted by MoparNorm on Monday, April 17, 2006 at 10:18PM :

In Reply to: Re: Oil Companies... posted by Rick in SC on Monday, April 17, 2006 at 8:54PM :

Apples to Oranges Rick. I'm surprised that it isn't MORE higher than that, because of the extra refining required. What percentage Bio? If it's B5 or B15 it's still mostly diesel, if it's B85 or B99, it's going to be even higher, ethanol isn't cheaper, it's just cleaner and home grown. Ethanol requires it own infrastructure, then has to added and blended to the diesel, it's natural that something that requires more work will cost more.
I would imagine that if Bio becomes more popular then the refining capacity will increase to meet demand. It will never be cheaper than diesel or gasoline, but if demand for Bio increases, then gas and diesel will soon be oversupplied and their price would come down slightly because of that. There is no escaping supply and demand, just like gravity, it's an infalible law of economics. Economic law does get slightly wacked when the government meddles, but the market is self correcting for that also, it just costs us all money for the politicians to meddle in things that are over their heads,...and unforunately, just about EVERYTHING is over their heads...= )
MN



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