Wednesday, July 23, 2008

New Juice

I have always been an opponent of the ethanol subsidies and mandates, knowing there was something wrong with a basic Production process; business would develop its own infrastructure if there was any viability within blending ethanol and Gasoline. Why pay an immense subsidy under mandate for an industry of low efficiency (about equal to the Power production of the Internal Combustion engine itself) where high Energy Inputs are required to draw off marginal amounts of added Energy at great Cost. I am not sure what bang there is in the fuel, but One will not find straight ethanol vehicles around, because straight ethanol has lousy mileage. I do know that farmers cannot endure a reduction in Corn prices, as Input Costs have reached incredible heights, effectively higher than Supermarket pricing.

I ask occasionally whether one can trust Reports produced by a Republican leadership committed to a rosy Picture being presented to the World, and the Results of this Report is another area where I wonder about the level of fudging. The Report cancels any impact from Speculation, when there has been a virtual flood of Cash into Oil industry paper, while Oil exploration has been finding new fields consistently, and the Rise in Consumption has also been consistent. I would speculate that the real Agent for Oil price increases resides in Oil company desire for hugely increased Profits. It is under this Scenario where Consumer Energy prices will not decrease, even if Speculators leave the Oil markets.

Nissan will go entirely electric in their cars, if they enter the market for ‘Green’ cars. I would suggest their current models will never sell, due to the unexpected long Trips which so many Consumers are subject. An automatic Switch to Public Transport remains unsavory in almost every Country outside of Europe, and it is getting worse there. I do not think Nissan has a chance of capturing market share without development of a Battery trailer which can be consistently Rented with Charge at properly spaced Recharging Stations. Such Trailers must be sturdy but lightweight, carry a long distance Charge, and have possess a easy, back-into Connection of both Trailer hitch and Electrical connection. Forget any Trailer which gets less than 500 miles per Charge, and make sure such Trailers can be mass-transited themselves for constant distribution. Can such a system be devised–Yes! Is it likely–No! lgl

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