The hype and media hysteria surrounding the BP (NYSE:BP) has been so out of proportion to reality, it's embarrassing to those who repeatedly made it sound like it was environmental armageddon, when in fact it was relatively mild and much of the response to the fears caused it to have more more impact than it would have if responses were based on facts and not fear driven.
Although people with agendas are attempting to resurrect the doomsday scenario, it's too late. The facts are in and the Gulf oil spill simply wasn't that bad, and if people would have heeded the reality that they could go to beaches in the Gulf and vacation there, the tourism industry wouldn't have been near as effected as it has been.
One thing to point out is the attempt to make it look like a slaughter for wildlife and birds, which after combing the region, found under 3,000, and as a recent article in Time magazine pointed out, less than half of them had proof of the oil spill being the cause of their deaths.
Now compare that with the killer windmills in the country, which are alleged to be friendly. Just one forest of windfarms in Washington state kills over 7,000 birds and 3,000 bats every year. Multiply that times the number of windfarms there are in the U.S., and you have a true disaster from these murderous, inefficient and ugly monstrosities.
Where is the call to investigate this outrage? How about prosecutions and media coverage of this disaster. As long as it's a politically correct energy source it doesn't matter how many birds, bats or animals they kill, as long as it appears to be green. What we're finding out, as with corn-based ethanol, is green is mean, and we need to stand up and start fighting against this hidden menace.
The government even offers tons of subsidies for these initiatives, which require huge amounts of inputs, along with the killing of hundreds of thousands of birds and bats annually.
We need to tear those things down and rid the land of them. Selling the materials which made the windmills would go a long way toward recouping some of the costs, and would rid the land of those hideous contraptions.
How is this different from BP and the oil industry, which has caused far less damage over decades than the wind and ethanol industries, which couldn't survive without taxpayers dollars?
It isn't! Let's get the pictures of the torn apart birds and mounds of bats out to the public and see how they respond to their tax dollars at work.
Let's also continue to expose the enormous inputs it takes to develop the corn-based ethanol industry, which even many environmentalist don't back and recognize as one of the worst solutions out there for alternative energy.
The Gulf has been found to be much more resilient and able to clean itself than people thought. But how do we clean the land of windfarms? How does nature deal with them.
Even former oil energy investors are in it just for the money, and not because they actually believe these forms of energy are better for us. They know what the consequences of using them are, but just keep touting it as clean energy and harmless to the environment, in spite of evidence to the contrary.
Since they are causing far more damage than the BP oil spill ever will, and you could include other spill as well, it's a serious question to ponder as to its negative impact for people of integrity, as it's hypocritical to demonize the oil industry when the so-called green industry is anything but.
Speaking of hypocrisy, look at the joke at Berkeley, where they receive millions in funding from BP in order to pursue targeted studies. The liberal bastion is living a lie, and even though a small number of people attempted to eliminate the financing, Berkeley showed its true colors by rejecting that and continuing on with its relationship with BP.
This doesn't bother me at all, but it does show the tremendous lie behind the many people and institutions positioning themselves and environmentalists, when they're far from it, and have as many ties to traditional energy industries as anyone else does.
Add to that the destructive forces these cruel, "green" energy sources release, and you see a completely different picture than the narrative the mainstream media attempts to portray.
Showing posts with label Ethanol Failure. Show all posts
Showing posts with label Ethanol Failure. Show all posts
Monday, August 9, 2010
Friday, July 16, 2010
Past Time to Drop the Ethanol Subsidies
While there should have never been subsidies for ethanol, now that the billions in tax credits are about to run out, we should just fold it up and let ethanol stand on its own.
If the market wants it, they'll pay for it, if not, let it fall by the wayside, and something propped up by the government which the public rejects, is throwing money down a black hole, never to return, or give a return.
At this time, close to $6 billion is offered in subsidies for ethanol, all via tax credits. That equals 45 cents a gallon.
As critics of the industry rightly note, if they can't stand on their own after 30 years, it's a complete waste of taxpayer dollars, and of course it is.
Ethanol has been known for years to destroy small power equipment like chainsaws and numerous others, making it highly costly in that regard as well.
The problem is, some groups are calling for the subsidies to stop, but then putting the money into other stupid initiatives like flex-fuel cars and other dubious products.
Let the market decide, along with the creative flow of business, which always creates the best and most innovative products and services we use.
We also need to limit the size of government, so the need, not only to get rid of this ineffective tax credit needs to be put in play, but also to keep the money off the table for anything else, and let business and the market decide what they want.
Some lawmakers say it would hurt the industry if they did that, but if it did, there is no real ethanol industry, but a government-propped entity sucking of the blood of taxpayer money.
This is no different than the apparent shocking surprise that the economy isn't' growing in America. Any honest and informed person knew that.
The government pouring billions into it to give the appearance of growth is all that was, even though the mainstream media reported the fantasy as a reality.
Now they're backpedaling as they know people are seeing the false undergirdings of a illusory recovery which never even created a job, but made it appear things were improving.
That's the same with ethanol. There's no foundation there, and we need to remove the foolish laws forcing the blend in gasoline to increase, continuing to reinforce a so-called fuel source very few people want.
If the market wants it, they'll pay for it, if not, let it fall by the wayside, and something propped up by the government which the public rejects, is throwing money down a black hole, never to return, or give a return.
At this time, close to $6 billion is offered in subsidies for ethanol, all via tax credits. That equals 45 cents a gallon.
As critics of the industry rightly note, if they can't stand on their own after 30 years, it's a complete waste of taxpayer dollars, and of course it is.
Ethanol has been known for years to destroy small power equipment like chainsaws and numerous others, making it highly costly in that regard as well.
The problem is, some groups are calling for the subsidies to stop, but then putting the money into other stupid initiatives like flex-fuel cars and other dubious products.
Let the market decide, along with the creative flow of business, which always creates the best and most innovative products and services we use.
We also need to limit the size of government, so the need, not only to get rid of this ineffective tax credit needs to be put in play, but also to keep the money off the table for anything else, and let business and the market decide what they want.
Some lawmakers say it would hurt the industry if they did that, but if it did, there is no real ethanol industry, but a government-propped entity sucking of the blood of taxpayer money.
This is no different than the apparent shocking surprise that the economy isn't' growing in America. Any honest and informed person knew that.
The government pouring billions into it to give the appearance of growth is all that was, even though the mainstream media reported the fantasy as a reality.
Now they're backpedaling as they know people are seeing the false undergirdings of a illusory recovery which never even created a job, but made it appear things were improving.
That's the same with ethanol. There's no foundation there, and we need to remove the foolish laws forcing the blend in gasoline to increase, continuing to reinforce a so-called fuel source very few people want.
Tuesday, January 27, 2009
Commodities | Cellulosic Ethanol the Answer?
Is cellulosic ethanol the answer to the alleged energy crisis? I don't think so. We already know ethanol made from corn has so many downsides that the idea of continuing to produce it, or even having industry based upon it is fooish at best, and reckless at worst.
Already the ethanol industry is self destructing as producers are falling by the wayside, as the news lets us know.
Ethynol stocks are a joke, and companies are all teetering on bankruptcy, if they aren't bankrupt already.
Power equipment like snowmobiles and chainsaws are being decimated by E10, and repair shops are full from the broken down machinery.
Stocks related to ethanol are also being crushed, and all the marketing schemes in the world aren't going to change that reality. Ethanol as an investment sucks, and there's no other way to put it.
As far as cellulosic ethanol goes, it's just another pipe dream that will fall along the wayside, as billions in taxpayers dollars are wasted on another ill advised biofuel obsession.
What cellulosic ethanol is made of is material that is in the majority of plant matter, which is the reason there was so much news on the subject, because it provides a unlimited amount of resources for the fuel.
Plant matter like rice straw, corn stalks, switch grass, wood chips and wheat are part of what could be used to make the biofuel.
The problem with cellulosic ethanol is the technology doesn't exist to mass produce it, and it will be an extremely expensive process to develop, making it less price friendly for consumers.
As the news of the ethanol debacle continues to come forth, we're finding more and more that the supposed bridge between corn ethanol and cellulosic ethanol is simply a myth. It's being used by those with vested interest in continuing to obtain funds from taxpayers for their pet projects to keep them going.
Even the former chair of the House Ag Committe in the USA admitted accidently that he doubts cellulosic ethanol will ever take off as a viable biofuel. So with corn ethanol being considered more and more dubious as a legitimate source of fuel and energy, it may be past time to shut down the ill advised investment and turn to other research and experiment to find real solutions to future energy needs.
Another practical problem with cellulosic ethanol is its difficulty in breaking down in contrast to corn ethanol. The reason is because starch in corn ethanol is much easier to break down and much cheaper to produce.
The truth is that there would be no ethanol producers, ethanol companies, ethanol stocks or ethanol investment if there wasn't the misguided "Renewable Fuel Standard" of the 2007 Energy Act, without which biodiesel and cellulosic ethanol and corn ethanol would have long faded away, and news of it would be absent.
Unfortunately, mainstream media loves ethanol in all its forms, and continues to ignorantly report on it as if it's the answer to energy and fuel problems. In reality the process and inputs are more of a problem that the solution it's trying to become.
Even politcians like those in Missouri are under fire for investing in ethanol companies to benefit from the tax supported industry. Sarah Steelman is bravely fighting not allowing them to profit from the windfall, as in the case of Show Me Ethanol.
This is ridiculous that in what would be considered insider trading and illegal in the private sector could be allowed in the public sector.
We hear about the scientific side of things in order to justify the money for research for ethanol. For example, with cellulosic ethanol, they say researchers are working on enzymes so they more less expensively produce the potential fuel.
The problem is that's a bunch of nonsense. It's meaningless. Researchers are working on it? What does that mean? It means there's no solution and its a bunch of smoke and mirrors as to its potential.
All of this is a governmental marketing scheme for ethanol, and it's ignorant. Try to use news outlets to do there marketing as they do, the government knows that the ethanol industry in general, and the cellulosic industry in particular, has no future. It's not going to happen.
The only people benefitting from this are the producers, investors, companies and repair shops, who are filled with snowmobiles, chainsaws and generators from the ethanol caused break downs.
One good thing about it all is those ethanol companies and investors thinking they were going to make a huge profit at the expense of taxpayers and users of the faulty biofuel, are now finding themselves losing a ton of money from the socialist program.
It doesn't matter what type of ethanol is being touted in the news, it isn't even a part of the answer going forward. Have all the conferences you want and strategy meetings, it doesn't work, and it's becoming more and more obvious the longer we're in it.
Before this debacle is over, we're going to see billions of taxpayers money flushed down the ethanol biofuel drain, as the mandate to produce 36 billion gallons of biofuel by 2022 will result in outrageous actions to attempt to make it happen, unless the 2007 Act mandate is rescinded; which it will have to be.
The mandate requires 15 billion gallons of biofuel from corn, and 2 billion from cellulosic sources. The news is that's not even going to be close to being able to be achieved.
Almost everyone concurs that to achieve the levels mandated by law, the tax credits to the companies involved would have to be jacked up to much higher levels to make it even close to being possible.
What's the conclusion? Drop the program altogether. It's absolutely unattainable, and to continue on the course is reckless.
Not only is corn ethanol not the answer, but cellulosic ethanol is even less of an answer. It's far past time to simply acknowledge that reality.
Already the ethanol industry is self destructing as producers are falling by the wayside, as the news lets us know.
Ethynol stocks are a joke, and companies are all teetering on bankruptcy, if they aren't bankrupt already.
Power equipment like snowmobiles and chainsaws are being decimated by E10, and repair shops are full from the broken down machinery.
Stocks related to ethanol are also being crushed, and all the marketing schemes in the world aren't going to change that reality. Ethanol as an investment sucks, and there's no other way to put it.
As far as cellulosic ethanol goes, it's just another pipe dream that will fall along the wayside, as billions in taxpayers dollars are wasted on another ill advised biofuel obsession.
What cellulosic ethanol is made of is material that is in the majority of plant matter, which is the reason there was so much news on the subject, because it provides a unlimited amount of resources for the fuel.
Plant matter like rice straw, corn stalks, switch grass, wood chips and wheat are part of what could be used to make the biofuel.
The problem with cellulosic ethanol is the technology doesn't exist to mass produce it, and it will be an extremely expensive process to develop, making it less price friendly for consumers.
As the news of the ethanol debacle continues to come forth, we're finding more and more that the supposed bridge between corn ethanol and cellulosic ethanol is simply a myth. It's being used by those with vested interest in continuing to obtain funds from taxpayers for their pet projects to keep them going.
Even the former chair of the House Ag Committe in the USA admitted accidently that he doubts cellulosic ethanol will ever take off as a viable biofuel. So with corn ethanol being considered more and more dubious as a legitimate source of fuel and energy, it may be past time to shut down the ill advised investment and turn to other research and experiment to find real solutions to future energy needs.
Another practical problem with cellulosic ethanol is its difficulty in breaking down in contrast to corn ethanol. The reason is because starch in corn ethanol is much easier to break down and much cheaper to produce.
The truth is that there would be no ethanol producers, ethanol companies, ethanol stocks or ethanol investment if there wasn't the misguided "Renewable Fuel Standard" of the 2007 Energy Act, without which biodiesel and cellulosic ethanol and corn ethanol would have long faded away, and news of it would be absent.
Unfortunately, mainstream media loves ethanol in all its forms, and continues to ignorantly report on it as if it's the answer to energy and fuel problems. In reality the process and inputs are more of a problem that the solution it's trying to become.
Even politcians like those in Missouri are under fire for investing in ethanol companies to benefit from the tax supported industry. Sarah Steelman is bravely fighting not allowing them to profit from the windfall, as in the case of Show Me Ethanol.
This is ridiculous that in what would be considered insider trading and illegal in the private sector could be allowed in the public sector.
We hear about the scientific side of things in order to justify the money for research for ethanol. For example, with cellulosic ethanol, they say researchers are working on enzymes so they more less expensively produce the potential fuel.
The problem is that's a bunch of nonsense. It's meaningless. Researchers are working on it? What does that mean? It means there's no solution and its a bunch of smoke and mirrors as to its potential.
All of this is a governmental marketing scheme for ethanol, and it's ignorant. Try to use news outlets to do there marketing as they do, the government knows that the ethanol industry in general, and the cellulosic industry in particular, has no future. It's not going to happen.
The only people benefitting from this are the producers, investors, companies and repair shops, who are filled with snowmobiles, chainsaws and generators from the ethanol caused break downs.
One good thing about it all is those ethanol companies and investors thinking they were going to make a huge profit at the expense of taxpayers and users of the faulty biofuel, are now finding themselves losing a ton of money from the socialist program.
It doesn't matter what type of ethanol is being touted in the news, it isn't even a part of the answer going forward. Have all the conferences you want and strategy meetings, it doesn't work, and it's becoming more and more obvious the longer we're in it.
Before this debacle is over, we're going to see billions of taxpayers money flushed down the ethanol biofuel drain, as the mandate to produce 36 billion gallons of biofuel by 2022 will result in outrageous actions to attempt to make it happen, unless the 2007 Act mandate is rescinded; which it will have to be.
The mandate requires 15 billion gallons of biofuel from corn, and 2 billion from cellulosic sources. The news is that's not even going to be close to being able to be achieved.
Almost everyone concurs that to achieve the levels mandated by law, the tax credits to the companies involved would have to be jacked up to much higher levels to make it even close to being possible.
What's the conclusion? Drop the program altogether. It's absolutely unattainable, and to continue on the course is reckless.
Not only is corn ethanol not the answer, but cellulosic ethanol is even less of an answer. It's far past time to simply acknowledge that reality.
Tuesday, January 13, 2009
Commodities: Consequences of Destructive Ethanol
Consumers continue to be battered by artificial commodity - ethanol
Rage, outrage and disgust continue to grow concerning the ethanol debacle, which continues to harm people's equipment, while the government officials stubbornly refuse to drop the ignorant pursuit of the alleged biofuel, in order to gain political currency.
Almost every type of power equipment, including outboard motors, weed whackers, chainsaws and snowmobiles, among other types of goods like those.
What's worse, is not only the terrible effects of ethanol being neglected by the government, but now the artificial industry has its people pushing for a higher mix of ethanol in gas, which would devastate power equipment even more.
The reason behind it is to shore up the failing industry, and make more money at the expense of the consumer, who will have most of their power equipment destroyed by the faulty fuel.
Some things to look for if you're using the damaging ethanol are: hard starting, erratic running, internal damage and eventual failure.
We need a grass roots uprising that will drive this ill-advised initiative out of existence before we experience thousands of dollars in damages to our equipment, and billions more is wasted to a completely lost and wasteful cause.
Ethanol is not a commodity, it's a government creation that, as usual, is doomed to fail. How many consumers will be hurt by the initiative before its finally halted?
Rage, outrage and disgust continue to grow concerning the ethanol debacle, which continues to harm people's equipment, while the government officials stubbornly refuse to drop the ignorant pursuit of the alleged biofuel, in order to gain political currency.
Almost every type of power equipment, including outboard motors, weed whackers, chainsaws and snowmobiles, among other types of goods like those.
What's worse, is not only the terrible effects of ethanol being neglected by the government, but now the artificial industry has its people pushing for a higher mix of ethanol in gas, which would devastate power equipment even more.
The reason behind it is to shore up the failing industry, and make more money at the expense of the consumer, who will have most of their power equipment destroyed by the faulty fuel.
Some things to look for if you're using the damaging ethanol are: hard starting, erratic running, internal damage and eventual failure.
We need a grass roots uprising that will drive this ill-advised initiative out of existence before we experience thousands of dollars in damages to our equipment, and billions more is wasted to a completely lost and wasteful cause.
Ethanol is not a commodity, it's a government creation that, as usual, is doomed to fail. How many consumers will be hurt by the initiative before its finally halted?
Saturday, January 3, 2009
Commodities: End of the Ethanol Era
Ethanol an artificial commodity, not the answer
Imagine a plant that can be easily grown on farms all over America. Imagine it can be turned into a fuel through a simple process. Imagine we burn that fuel in our cars to reduce our dependence on foreign oil.
That sounds wonderful. But that plant is not corn. That process is not simple. And that fuel is not ethanol.
Click here for more on "End of the ethanol era"
I can't consider ethanol a real commodity, as is trying to be foisted on us by the government and greenies. There's absolutely nothng about it that has any value, as about every positive assertion made about it is turning out to be false.
Imagine a plant that can be easily grown on farms all over America. Imagine it can be turned into a fuel through a simple process. Imagine we burn that fuel in our cars to reduce our dependence on foreign oil.
That sounds wonderful. But that plant is not corn. That process is not simple. And that fuel is not ethanol.
Click here for more on "End of the ethanol era"
I can't consider ethanol a real commodity, as is trying to be foisted on us by the government and greenies. There's absolutely nothng about it that has any value, as about every positive assertion made about it is turning out to be false.
Monday, November 10, 2008
Commodities: Pacific Ethanol Huge Losses
The ethanol debacle continues, as the latest disaster for the artifical commodity is Pacific Ethanol (nasdaq:PEIX) had an even worse quarter than expected, as losses surged to $54.9 million in the third quarter, up significantly from the $4.8 million in the same quarter last year.
As with other ethanol companies, blame has been placed on the increased price of corn, and in Pacific's case, an impairment charge of $26.6 million for quitting construction on a plant in California.
This is in spite of revenue growing 56 percent to $184 million, a solid increase from $118.1 million a year ago.
Losses equaled 98 cents a share, a much larger number than the 16 cents a share analysts were looking for. Revenue was also far below the $218.6 million projected by analysts.
It's amazing to see this endless black hole continue to be fed by federal subsidies, when it ethanol as an alternative fuel simply needs to be laid aside. It isn't working and it won't work in the future.
We need to get out of denial and admit ethanol as a commodity and alternative fuel is a losing proposition.
As with other ethanol companies, blame has been placed on the increased price of corn, and in Pacific's case, an impairment charge of $26.6 million for quitting construction on a plant in California.
This is in spite of revenue growing 56 percent to $184 million, a solid increase from $118.1 million a year ago.
Losses equaled 98 cents a share, a much larger number than the 16 cents a share analysts were looking for. Revenue was also far below the $218.6 million projected by analysts.
It's amazing to see this endless black hole continue to be fed by federal subsidies, when it ethanol as an alternative fuel simply needs to be laid aside. It isn't working and it won't work in the future.
We need to get out of denial and admit ethanol as a commodity and alternative fuel is a losing proposition.
Wednesday, November 5, 2008
Commodities: Obama's Failed Ethanol Policy
Ethanol as a viable commodity is a joke, yet Obama following same failed Bush policies
The more things "change," the more they stay the same, and that is how it will be with Barack Obama and the ongoing ethanol debacle in America.
With Obama, it's obvious the reasons why, as government subsidies pour into his home state of Illinois, the nations second-largest producer of corn.
Obama campaign senior energy adviser Heather Zichal said concerning Obama's ethanol policy that "Obama recognizes how important the renewable and biofuels industry is to creating jobs and meeting our goal of reducing dependence on foreign oil. He's fully committed to it and sees tremendous value in the renewable fuels standard and continuing down this path."
So the man of change is going to keep the Bush policy goal of a "minimum of 36 billion gallons of biofuels by 2022," said Zichal. At this time ethanol loses close to 66 cents a gallon at existing prices.
Oil refiners receive a subsidy of 51 cents a gallon for the ethanol mixed with regular gasoline, and a stiff 54 cent-a-gallon tariff is put on the sugarcane-based ethanol from Brazil.
The continued idiocy of saying we need to reduce our dependence on foreign oil when we have billions upon billions of barrels proven to be on American soil or off its coastlines is dishonest at best.
There is no way the corn-based ethanol industry currently touted can survive, no matter what the government says. The idea now being thrown about is to use cellulosic ethanol, which is made from non-food crops.
One major problem is it costs about twice as much as corn-based ethanol to produce. Another is it's years away from being any significant contributor to our energy needs, if it ever will be. We need answers in the near future, not 10 or more years from now.
The corn-based ethanol problem is even worse, as it has already caused a lot of pain to poor people around the world who suffered from the resultant high food prices from the misguided effort, and riots ensued in a number of countries because of skyrocketing food costs.
Another huge problem is the increased costs to meat producers in the U.S., who have been damaged greatly from higher feed costs.
This is one area we need to simply toss aside and refuse to bring politics into. The damage is extensive and it'll only get worse if we keep going in this direction.
I wonder if this is the type of "change" Obama was supposedly going to initiate? This ethanol policy and the resultant illusion that it's a real commodity continues to be destructive, as shown by the damage it does to small engine power equipment like chainsaws, snowmobiles and generators.
The more things "change," the more they stay the same, and that is how it will be with Barack Obama and the ongoing ethanol debacle in America.
With Obama, it's obvious the reasons why, as government subsidies pour into his home state of Illinois, the nations second-largest producer of corn.
Obama campaign senior energy adviser Heather Zichal said concerning Obama's ethanol policy that "Obama recognizes how important the renewable and biofuels industry is to creating jobs and meeting our goal of reducing dependence on foreign oil. He's fully committed to it and sees tremendous value in the renewable fuels standard and continuing down this path."
So the man of change is going to keep the Bush policy goal of a "minimum of 36 billion gallons of biofuels by 2022," said Zichal. At this time ethanol loses close to 66 cents a gallon at existing prices.
Oil refiners receive a subsidy of 51 cents a gallon for the ethanol mixed with regular gasoline, and a stiff 54 cent-a-gallon tariff is put on the sugarcane-based ethanol from Brazil.
The continued idiocy of saying we need to reduce our dependence on foreign oil when we have billions upon billions of barrels proven to be on American soil or off its coastlines is dishonest at best.
There is no way the corn-based ethanol industry currently touted can survive, no matter what the government says. The idea now being thrown about is to use cellulosic ethanol, which is made from non-food crops.
One major problem is it costs about twice as much as corn-based ethanol to produce. Another is it's years away from being any significant contributor to our energy needs, if it ever will be. We need answers in the near future, not 10 or more years from now.
The corn-based ethanol problem is even worse, as it has already caused a lot of pain to poor people around the world who suffered from the resultant high food prices from the misguided effort, and riots ensued in a number of countries because of skyrocketing food costs.
Another huge problem is the increased costs to meat producers in the U.S., who have been damaged greatly from higher feed costs.
This is one area we need to simply toss aside and refuse to bring politics into. The damage is extensive and it'll only get worse if we keep going in this direction.
I wonder if this is the type of "change" Obama was supposedly going to initiate? This ethanol policy and the resultant illusion that it's a real commodity continues to be destructive, as shown by the damage it does to small engine power equipment like chainsaws, snowmobiles and generators.
Monday, November 3, 2008
Commodities: Ethanol VeraSun Energy Bankruptcy
Ethanol as commodity continues to lose luster as VeraSun files for bankruptcy
The hugely misguided effort by the U.S. government to artificially produce an ethanol industry in America continues to flounder, with the latest casualty in the debacle being VeraSun Energy Corp., which has filed for Chapter 11 bankruptcy protection.
VeraSun Energy, which accounts for close to 13 percent of the ethanol capacity in the country, is attempting to get $190 million to meet expenses, including payroll. Other needs to be met are buying of corn, leases, natural gas, among a number of others.
Standard & Poor's also lowered the long-term credit rating of the company on its senior secured notes - due in 2012 - from "B-" to "D." They're worth about $210 million. VeraSun has about $450 million in unsecured notes - due in 2017 - lowered from "CCC" to "D."
With profit margins of about zero, almost no credit markets, and terrible, speculative bets on commodities, the company has no chance at operating in its current condition. Another major factor was its irresponsible debt load, which also make it impossible to operate at a profit.
If oil prices stay low for any significant period of time, it's expected that many of the players in the dubious industry will fail as well.
While VeraSun is expected to continue operating at full capacity, thus not helping its competitors, who may have had the opportunity to take over the market share of the company, it has a huge uphill battle, as its changes of suriving, let alone turning a profit remain slim to none.
It remains to be seen if some of the larger competitors of VeraSun will be able to operate at similar losses. Some of the bigger companies are the privately held Poet LLC, along with agribusiness behemoth Archer Daniels Midland.
We should just put this ethanol nonsense to a rest in the U.S., and start drilling for more proven oil reserves in the U.S. and on its coasts, while looking to develop options that have real chances of being successful alternatives to and complements to traditional energy sources.
What a waste of time and money the pursuit of ethanol has been in the U.S.
Update: Judge approves VeraSun's rare bankruptcy financing
End the ethanol subsidy now, or we'll see more ethanol companies collapse, as it's an artificial, propped up commodity, not a real one.
The hugely misguided effort by the U.S. government to artificially produce an ethanol industry in America continues to flounder, with the latest casualty in the debacle being VeraSun Energy Corp., which has filed for Chapter 11 bankruptcy protection.
VeraSun Energy, which accounts for close to 13 percent of the ethanol capacity in the country, is attempting to get $190 million to meet expenses, including payroll. Other needs to be met are buying of corn, leases, natural gas, among a number of others.
Standard & Poor's also lowered the long-term credit rating of the company on its senior secured notes - due in 2012 - from "B-" to "D." They're worth about $210 million. VeraSun has about $450 million in unsecured notes - due in 2017 - lowered from "CCC" to "D."
With profit margins of about zero, almost no credit markets, and terrible, speculative bets on commodities, the company has no chance at operating in its current condition. Another major factor was its irresponsible debt load, which also make it impossible to operate at a profit.
If oil prices stay low for any significant period of time, it's expected that many of the players in the dubious industry will fail as well.
While VeraSun is expected to continue operating at full capacity, thus not helping its competitors, who may have had the opportunity to take over the market share of the company, it has a huge uphill battle, as its changes of suriving, let alone turning a profit remain slim to none.
It remains to be seen if some of the larger competitors of VeraSun will be able to operate at similar losses. Some of the bigger companies are the privately held Poet LLC, along with agribusiness behemoth Archer Daniels Midland.
We should just put this ethanol nonsense to a rest in the U.S., and start drilling for more proven oil reserves in the U.S. and on its coasts, while looking to develop options that have real chances of being successful alternatives to and complements to traditional energy sources.
What a waste of time and money the pursuit of ethanol has been in the U.S.
Update: Judge approves VeraSun's rare bankruptcy financing
End the ethanol subsidy now, or we'll see more ethanol companies collapse, as it's an artificial, propped up commodity, not a real one.
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