Wednesday, June 9, 2010

Archer Daniels Midland (NYSE:ADM) Ethanol Push

Archer Daniels Midland (NYSE:ADM) is attempting to use the negative sentiment against oil companies at this time as a result of the Gulf spill to push their ethanol agenda of increasing the mix of ethanol and gasoline to 12 percent to run in cars.

This isn't because they care about alternative energy, as corn-based ethanol is harsh and hard on the environment, rather it's because of the drop in price of corn which will generate better earnings because of higher margins.

To that end they're pressing the Environmental Protection Agency to make the increased change to benefit themselves solely by selling more corn.

Meat producers are strongly resisting ethanol subsidies and other measures like this as it puts strain on their margins because of the ethanol industry being artificially propped up by the government.

I agree with the meat industry that ethanol subsidies should be completely abandoned and the industry should be left to stand or fall on its own, like it should have been all along.

With ethanol causing all sorts of problems for small engines and lack of evidence as to how hard it is on some cars, it would be foolish and irresponsible to allow this increase in ethanol-gasoline blend at this time, or any time in the future.

Let people decide if they want to buy ethanol to run their vehicles, not anyone else.


Anonymous said...

Wow, what a joke this article is. The author is clearly a BigOil pawn.

If you want to remove the subsidies, fine, but also remove ALL the credits and subsidies for oil too and see what happens.

If you believe in climate change due to CO2, what makes more sense, recycling years old CO2 via plants or pulling million year old carbon out of the ground and adding it in the air?

Ethanol burns cooler than gasoline, making less NOx. It has it's own oxygen, reducing CO. HCs are about the same but can be reduced by running leaner at the expense of some increase in NOx.

Small engines pollute a lot relative to their size. All gas
engines regardless of size would
last longer and pollute less (see above) if converted to E85, due to lower peak pressures (easier on bearings, etc.) and lower temps.

And all the Food vs. Fuel B.S. is more BigOil spin. An acre of cactus makes as much ethanol as an acre of corn, uses no water, plus the US has a lot of desert to grow it.

What's more sustainable, using solar energy to grow plants to make fuel, or killing people to take their oil?

It'll be interesting to see how long my comments last here.


Curtis said...


Thanks for rebutting on Ellen's 'wanting' drivel.

Come on, people. There is a good mix between ethanol and oil. Oil will grow regardless of ethanol's position but the latter is the only one that makes you think of the environment every time you fill at the pump - it's the constant reminder.

ADM needs to push since it is the leader in the market and it can only be faulted for being proactive to the opportunity that ethanol policy and related investments bring.

There now.