Fausta's Blog

3 Responses to “Oil”

1. Kermit Says:
   October 2nd, 2012 at 1:49 pm

   One of the largest problems the NE U.S. faces is logistics and refining. Most of your fuel comes via ship and existing refineries (circa 2008) were reliant on being able to only use light sweet crude as they and their technology had not kept up with modern supply.

   Your price at the pump is 50 cents higher, per gallon, than the Gulf Coast.

   Additionally, you are further away from the mandated ethanol additive, and freight is not cheap. Much of it is barged down the Mississippi River to where refined product terminals are located, blended with fuel and pumped to as far away as DC. Some is shipped via ocean going barge to FL who is likely in the same price range per gallon as the NE>

2. John Says:
   October 3rd, 2012 at 7:40 am

   Kermit….At one time the US imposed a 50 cent/gallon duty on ethanol coming from Brazil. Protecting the corn farmers is more important than letting the market set the price. Looks to me Brazilian ethanol could come direct to NE.

   My take on Obama is he wants higher energy prices in order to justify wind, solar and the Chevy Volt.

3. Kermit Says:
   October 3rd, 2012 at 4:48 pm

   John,
   We are now a net exporter of ethanol. Before that, non-CAFTA ethanol was brought to places like Jamaica & St. Croix as an unfinished product. The final dewatering stage where it is passed through a molecular (mole) sieve, then shipped to the “Lower 48″ without any duties. So, no there was not a duty levied.