More "Crony Capitalism" from Obama -- E15 coming soon to your car's gas tank!

Ken 2012/04/25 20:48:06
When will the madness end?
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The folly of E15 anti-hydrocarbon policies

By Paul Driessen

The Obama Administration’s anti-hydrocarbon ideology and “renewable”
energy mythology continues to subsidize crony capitalists and the
politicians they help keep in office – on the backs of American
taxpayers, ratepayers and motorists. The latest chapter in the sorry
ethanol saga is a perfect example.

to pressure from ADM, Cargill, Growth Energy and other Big Ethanol
lobbyists, Lisa Jackson’s Environmental Protection Agency has decided to
allow ethanol manufacturers to register as suppliers of E15 gasoline.
E15 contains 15% ethanol, rather than currently mandated 10% blends.

The next lobbying effort will focus on getting E15 registered as a fuel
in individual states and persuading oil companies to offer it at
service stations. But according to the Associated Press and

Washington Post,
Team Obama already plans to provide taxpayer-financed grants, loans and
loan guarantees to “help station owners install 10,000 blender pumps
over the next five years” and promote the use of biofuels.

Pummeled by Obama policies that have helped send regular gasoline
prices skyrocketing from $1.85 a gallon when he took office to $4.00
today – many motorists will welcome any perceived “bargain gas.” E15
will likely reduce their obvious pump pain by several cents a gallon,
thus persuading people to fill up their cars, trucks and maybe even
boats, lawnmowers and other equipment with the new blends.

[Any saving at the pump on the
price of E15 will be a false saving. Ethanol contains only 60% of the
energy of gasoline, so by replacing 15% of gasoline with ethanol, there
will be 6% less energy (.15 X .40) in every gallon of E15 than in a gallon of
non-ethanol gasoline, resulting in lower mileage. In order for E15 to
actually save money at the pump, it would have to sell at less than $3.76 a gallon
when non-ethanol gasoline was selling at $4.00. If you could get 30
mpg on straight gasoline, your mileage would be ~ 28.2 mpg on E15, because
of its lower energy content.]

That would be a huge mistake.

E15 gasoline will be cheaper because we already paid for it with
decades of taxpayer subsidies that the Congressional Budget Office says
cost taxpayers $1.78 every time a gallon of ethanol replaced a gallon of
gasoline. Ethanol blends get fewer miles per tank than gasoline. More
ethanol means even worse mileage. People may save at the pump, but cost
per mile will increase, as will car maintenance and repair costs.

Ethanol collects water, which can cause engine stalls. It corrodes
plastic, rubber and soft metal parts. Pre-2001 car engines, parts and
systems may not be able to handle E15, which could also increase
emissions and adversely affect engine, fuel pump and sensor durability.
Older cars and motorcycles mistakenly (or for price or convenience)
fueled with E15 could conk out on congested highways or in the middle of
nowhere, boat engines could die miles from land or in the face of a
thunderstorm, and snowmobiles could sputter to a stop in a frigid

Homeowners and yard care professionals have voiced concerns that E15’s
corrosive qualities could damage their gasoline-powered equipment.
Because it burns hotter than gasoline, high ethanol gasoline engines
could burn users or cause lawnmowers, chainsaws, trimmers, blowers and
other outdoor power equipment to start inadvertently or catch fire, they

Comment: While Obama rants against "crony capitalism," his administration has been the biggest proponent of it, ever!
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  • Zak Smith 2012/04/28 02:56:07
    When will the madness end?
    Zak Smith
    Crony Capitalism is a problem found on both parties' platforms. The left uses politics to funnel government money into renewable energy and healthcare, among others. Both laudable goals, but the ends do not justify the means. Republicans funnel funds to defense and energy independence. Once again, good goals, poor means. This type of economic planning leads to corruption and industrial welfare. We end up with government funds being the only thing keeping losing companies alive, because the safety net encourages unreasonable risk. The company gets to keep all its winnings and the public pays off its losses. I would love to enter a casino with those rules. I could bet $100,000 on every spin of the roulette wheel and every time my number lost I just get a new $100,000 to bet next time. If I win though I get to keep all my winnings. In a truly free market, one without government intervention, the losers would go out of business and make way for the well run companies with solid products and services to offer. The competition would also mean higher quality and a fast rate of development.
  • Ken Zak Smith 2012/04/28 04:20:52
    Right, however -- I don't recall any loans pushed through by Republican administrations to failing companies in order to push their agenda that were in any way like the failed "green energy" companies Obama has loaned, and lost, hundreds of millions to. When "green energy" is truly viable and competitive the free-market will provide it. That's what Obama and the "central control freaks" don't understand about free-market capitalism.
  • Zak Smith Ken 2012/04/28 15:16:17
    Zak Smith
    Republican politicians are included in the "central control freaks." They pay lip service to free markets, but then they create subsidies, tax loopholes, and regulations to protect their industries of choice. And the federal bailouts started in the Bush administration, they were continiued and enlarged in the Obama administration.
  • Ken Zak Smith 2012/04/28 21:41:33
    Some are, but the number is growing smaller with the Tea Party supporting fiscal conservatives. The TARP money spent saving the banks during the end of the Bush administration has been repaid with interest, the money spent bailing out Chrysler and GM has not.
  • ☆stillthe12c☆ 2012/04/28 02:08:20
    When will the madness end?
    I am so glad that Paul included the fact about the lower gas mileage which I have been telling people about. The other fact is the amount of energy that it take to produce that even many of the environmentalist have back off it use. They found out that the amount of pollution that was being created by the process of producing the Ethanol that they gained very little.
    Here is another thing, the United States pays a dollar for every barrel of Ethanol that is in the ship. They get that dollar even though most of the ethanol is not pumped out of the ship and then it gets discounted in Europe.
  • Ken ☆stillt... 2012/04/28 04:23:34
    Walter Williams had an oped on it last year and with the energy expended in manufacturing ethanol, growing the corn, etc., and the land and water used, there is a net loss of energy and there is more CO2 expended as well. Add to that the fact that the grain market has been driven sky-high, driving up all food prices inasmuch as chickens, pigs and cattle are fed on grain.
  • ☆stillt... Ken 2012/04/28 16:09:12 (edited)
    I have written in the past about what it has done to the price of grain. There are many 3rd world nation that depend on buying cheap grain form America and they can no longer doing that. Yet the Government continues to subsidize farmers not to grow. Most of these subsidies go to the large corporation and much of it is paying for land that is not even usable.
    I read that if there was a energy gain is was around 2%. This was in an article written about 3 years ago.
  • Ken ☆stillt... 2012/04/28 21:43:11
    In his oped Walter Williams went into the entire cost, including the land use, tractors, labor, etc. and came up with a net loss in energy and added pollution as well. I'll see if I can find a link.
  • Ken ☆stillt... 2012/04/28 21:46:49

    Dr. Williams says it takes more than one gallon of fossil fuel to produce a gallon of ethanol. He says it's 20% to 30% less efficient than gasoline, but I believe it contains only 60% as much energy as gas.
  • Charles R. Anderson 2012/04/26 05:20:41
    When will the madness end?
    Charles R. Anderson
    Ethanol does not provide any net energy, so it does not lower other energy consumption. It does not provide any reduction in pollution. Neither of these reasons for ethanol mandates, and the earlier subsidies, ever held any water. The Ethanol Mandate was never anything but a special interest program at the expense of most Americans.
  • Ken Charles... 2012/04/27 04:35:14
    Succinctly put!
  • Ken Charles... 2012/04/28 21:47:02
  • Charles... Ken 2012/05/03 05:52:45
    Charles R. Anderson
    I have been pointing out for years that the ethanol mandate can be taken as a clear signal that Congress cares little for the General Welfare. It is so obviously wrong and so clearly a special interest promotion at great expense to most Americans that we can see the evil of most politicians very clearly if they support it.
  • Ken Charles... 2012/05/03 21:46:18
    I totally agree. They don't dare upset the "farm vote" in the "Corn Belt" by ending it, now that it is established - I believe both Democrats and Republicans fall into that category and it will take someone with a huge set of "cajones" to push to end the fiasco.
  • Rabbit 2012/04/25 23:59:31
    The E15 fuel will also shorten the life of our car's engines. I smell a Chevy Volt push.

    chevy volt fire
  • Theresa 2012/04/25 22:03:59
    When will the madness end?
    More of the same subsidies of the Ethanol producers! It does not work. This is a big trick. CAFE standards are being raised and the fuel is lowering mile per gal. What a scam!
  • Kane Fernau 2012/04/25 21:14:38
    Kane Fernau
    Making the same mistakes over and over is either crazy or evil.
  • jimmy Kane Fe... 2012/04/26 19:22:47
    how about both
  • Razoreye001 2012/04/25 20:56:35
    it burns cleaner but is more expensive, what's the problem?
  • jimmy Razorey... 2012/04/26 19:24:34
    the problem that lawnmower engines, chain saw, and anyothers small engines that are air cooled cannot run on E15 they get to hot

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