Ethanol Exposed!

Today ethanol gained tremendous exposure as both CBS's "60 minutes" and NBC's dateline aired segments about its current status and future.  Both television broadcastings were pro-ethanol. On "60 minutes" Rick Wagner, CEO of GM, said ethanol is a "really good choice." GM has created 1/3 of the current 5 million flex fuel cars that run in America. On NBC dateline, Vinod Khosla, one of the world's most successful venture capitalists is a complete advocate for ethanol. His interview can be read below:

Vinod Khosla:  I looked, did my research and found this was brain dead simple to do.

Stone Phillips, Dateline anchor:
  Is it going to mean spending less at the pump?

Khosla
:  Absolutely. The consumer would be paying a dollar a gallon or less.

Khosla
:  What could be better than a greener fuel that’s cheaper for consumers, that doesn’t feed Mideast terrorism, yet instead fuels rural America?

Phillips:
How long before you believe this country could be energy independent if it switched to homegrown bushels instead of imported barrels?

Khosla:
 
I think you’ll be surprised by my answer.  In less than five years, we can irreversibly start a path that can get us independent of petroleum.


Phillips: 
What convinced you this was a must for America?

Khosla
:
I heard about Brazil.  I heard they were already doing it. Brazil’s proven it already.  How dumb can we be?


Phillips:  
This has you pretty charged up, doesn’t it?

Khosla:
 
It is very exciting.


Khosla:
The environmentalists love it because it’s greener. he neo-conservatives like it because it ensures energy independence and security for America. The farmers love it because it takes oil dollars and moves it to rural America.


Phillips: 
It sounds almost too good to be true.

Khosla:
I’m not this “imagine some kind of hypothetical future” kind of person. But it is a very pragmatic vision.


Phillips:  
How much of a burden will that put on oil companies to start distributing ethanol?  To dedicate a pump to ethanol?  I mean what about trucks? What about their holding tanks?

Khosla:
In most cases, the same holding tanks can be used.  The same trucks can be used to transport the ethanol.  There are logistics problems to be solved, to be sure, but it’s not a difficult transition. I’ve looked at all the issues they raise. In fact, most of them are bogus.


Khosla:
 
We need to make sure that the major oil companies don’t manipulate the price of oil enough to drive ethanol out of business.

Phillips: 
Do you believe oil companies would deliberately drop the price of oil?

Khosla:
  Absolutely. A senior executive of a major oil company came up to me and said, “Be careful.”  In a very warning tone he said, “Be careful, we can drop the price of gasoline.”

Phillips:
What do you say to skeptics, who say, you’re a money maker, you’re an investor and what you’re trying to do here is to drum up support and governmental help to make sure your investment pays off?

Khosla:
 
Well, I am in the business of investing, but in fact, this has become a mission for me. To get the message out of how simple it is to get independent of petroleum.  In fact, my mission now is to put the fossil in fossil fuels.

(http://www.msnbc.msn.com/id/12676374/page/2/)

A very good night for ethanol, lets see how it will correlate with the stock market tommorow...lets see specualtion work in action!

 

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