Originally posted by: K1052
Originally posted by: dmcowen674
Originally posted by: K1052
The Army Corps of Engineers is closing a bunch of the locks along the Mississippi in Illinois and Missouri, effectively closing the river to traffic for at least two weeks.
That's gonna fsck up the refineries that get their crude by barge.
There has been and continues to be no shortage of oil.
The storage tanks have been full at 9 year highs.
They are not going to run out in 2 weeks.
They will try and make you think they will and I bet many people will believe it.
If you can't get the crude from the oil
terminal to the refineries they'll run out. Refineries don't keep a month's worth of oil on hand in their tanks since that would be a lot of useless tankage to maintain.
The Army Corps said two weeks
minimum, they're pulling the motors out of the locks to protect them from the rising water.
Excuses excuses
6-13-2008
Midwest floods may send gas up 15%
Soaring corn prices could increase the price of ethanol, driving up demand for oil and sending gas prices even higher. Some think it's time for Congress to act.
Continued flooding in Iowa and Illinois - the nation's top two corn-growing states - is inciting fears that the cost of the high-priced crop could soar even further, driving up ethanol and gas prices, too.
Days of heavy rain across the Midwest "corn belt" region have wreaked havoc on the crop, sending front-month prices to $7.08 a bushel on the Chicago Board of Trade Friday. Corn futures have risen for 7 straight trading sessions.
Since ethanol - a mandated ingredient in U.S. gasoline - is produced domestically with corn, rising crop prices could send already record gasoline prices even higher.
"The floods in the Midwest will have a major impact on ethanol," said Phil Flynn, senior market analyst at Alaron Trading in Chicago.
Gasoline in the United States is comprised of only about 6% to 10% ethanol, as mandated by federal and state governments. But Flynn believes gas prices could jump 10% or 15% if corn were to hit $10 a bushel and crude oil maintains its current high level
Congress' ethanol quandary
Congress continues to search for a way to relieve Americans' pain at the pump, and if gas prices spike another 50 or 60 cents, members may look to change their ethanol policies.
"Congress is going to have a hard time justifying mandating the use of ethanol in gasoline if we lose one-third of the corn crop," Flynn said.
"For every drop of ethanol that we're not using, we'll be using (more oil-based) gasoline," noted Flynn.
Reducing the ethanol tariff
Another potential solution that is gathering support in Congress is reducing or eliminating the foreign ethanol tariff. The import tariff of 54 cents a gallon on ethanol keeps the price of imported ethanol high in an effort to support domestic farmers.
Much of imported ethanol is made from sugar cane, which is cheaper to produce than domestic corn-based ethanol.
"The need for inexpensive and cleaner-burning fuels continues to grow, and yet U.S. refiners are forced to pay a 54-cent tariff on ethanol imported from Brazil and other foreign sources," Feinstein said on the Senate floor last week. "This makes no sense, given the record oil prices and the limited supplies of domestic ethanol."
"States outside the Midwest, especially ... coastal states, are at a huge disadvantage when it comes to accessing domestically produced ethanol due to shipping challenges," said Gregg on the floor. "Imported ethanol from Brazil and other friendly nations can be provided to these coastal states more easily and at a lower cost."