Ethanol Stocks to Get Revved Up About
A century ago, Henry Ford planned to make ethanol -- a form of alcohol derived from sugar or grains such as corn -- the primary fuel for his Model T.
The Model T that was first produced in 1908 would, in fact, run on either ethanol or gas. But gas was cheaper and became the dominant fuel, then and now. Ford's vision of widespread ethanol use, though, is getting closer to reality.
Starting in May, Americans will be putting a lot more ethanol in their tanks as refiners drop the additive methyl tertiary butyl ether (MTBE), which is used to make gasoline burn cleaner. The additive may cause cancer, and Congress has declined to offer refiners protection from legal liabilities that may arise from MTBE use. MTBE -- which makes up about 1.5% of the country’s gasoline supply, or around 2 billion gallons -- will be replaced with ethanol.
Long term, there are even bigger forces at work that should spur greater ethanol use. Americans are getting fed up with dependence on oil from the Middle East and high gasoline prices, and they are telling their politicians to do something about it.
MSN
The Model T that was first produced in 1908 would, in fact, run on either ethanol or gas. But gas was cheaper and became the dominant fuel, then and now. Ford's vision of widespread ethanol use, though, is getting closer to reality.
Starting in May, Americans will be putting a lot more ethanol in their tanks as refiners drop the additive methyl tertiary butyl ether (MTBE), which is used to make gasoline burn cleaner. The additive may cause cancer, and Congress has declined to offer refiners protection from legal liabilities that may arise from MTBE use. MTBE -- which makes up about 1.5% of the country’s gasoline supply, or around 2 billion gallons -- will be replaced with ethanol.
Long term, there are even bigger forces at work that should spur greater ethanol use. Americans are getting fed up with dependence on oil from the Middle East and high gasoline prices, and they are telling their politicians to do something about it.
MSN
posted by Ottawa Gas Prices | 8:06 PM
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