July 31, 2008
Ethanol Complaints Are Only Temporary
Analysis of:
In Gas-Powered World, Ethanol Stirs Complaints | www.nytimes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Today's condition of the production of ethanol looks as it is not cost effective. Ethanol itself has some problems in the process of combustion in the internal combustion engine (ICE). But this is today. When the ethanol producers start providing market with desireable volumes of the fuel, the situation will be improved. Needless to say the USA and the rest of the world urgently need new sources of energy.
Analysis: If we recall development of any new products, we will see several stages: expensive, then affordable, then improved, then affordable and improved.
Let us take microwave ovens as an example: it was around $1000.00 when it originally hit the market, then the profits allowed more R&D, new materials were developed and now we have a simle microwave under $100.00 a piece. Most fancy and big one (soon to be remote controlled via the internet) costs about $400.00
Any product goes through these transformations. With rapidly rising energy needs, new methods of ethanol production will be developed, new crops of the raw materials will be raised by the farmers (as of now the government pay farmers NOT to grow wheat, corn, and other agricultural products; a prime farming land is sold to developers to build residential communities), and new coatings for internal combustion engines will be developed. Let us add that car companies may modify the design of the above said engines to burn ethanol in a more efficient way, just low NOx burners, as an example. So let us welcome the efforts to have new fuel and support its further advancement.
Analysis: If we recall development of any new products, we will see several stages: expensive, then affordable, then improved, then affordable and improved.
Let us take microwave ovens as an example: it was around $1000.00 when it originally hit the market, then the profits allowed more R&D, new materials were developed and now we have a simle microwave under $100.00 a piece. Most fancy and big one (soon to be remote controlled via the internet) costs about $400.00
Any product goes through these transformations. With rapidly rising energy needs, new methods of ethanol production will be developed, new crops of the raw materials will be raised by the farmers (as of now the government pay farmers NOT to grow wheat, corn, and other agricultural products; a prime farming land is sold to developers to build residential communities), and new coatings for internal combustion engines will be developed. Let us add that car companies may modify the design of the above said engines to burn ethanol in a more efficient way, just low NOx burners, as an example. So let us welcome the efforts to have new fuel and support its further advancement.
Report a Concern
More GLG News in
Energy & Industrials
Most Popular:
Source Article | Expert Analyses
"The technology that will save humanity"
www.salon.com
Dow Chemical to Take `Radical Actions' to Reach Profit Goal
www.bloomberg.com
YRC Reports $823 Million Q3 Impairment Charge
www.reuters.com
At Exxon, Making the Case for Oil
www.nytimes.com
New Global Trucking and Logistics Company Index
seekingalpha.com
Petrochem Giants in Crisis Mode
November 20, 2008
Land Ahoy...The Dawn of Concentrated Solar Power
November 18, 2008
Oil is Forever or Until it Runs Out
November 18, 2008
Similarity to early '80's Remarkable... with one big difference
November 14, 2008
Concentrated Solar Power(CSP): Economics Are Not There
November 11, 2008

