The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend. (Photo courtesy of the National Renewable Energy Laboratory)
Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:
Transcript
Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:
Crude oil prices spiked a little because of Iran’s long-range missile testing and revelations of a secret nuclear facility.
But analysts think for the next several months we’ll actually see oil prices go down – maybe to around $30 a barrel, less than half of what it is now.
And that could hurt demand for fuels such as ethanol.
But the government has mandated the nation produce more ethanol.
Dan Flynn is an analyst with the trading firm, Alaron.
“Obviously the government definitely wants to push this through. However, the price of crude oil and gasoline, if that goes down, generally people look not to look for alternative sources of energy.”
One way to use more ethanol is to mix higher amounts with gasoline.
The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend.
For The Environment Report, I’m Lester Graham.