Comments on: Ethanol, Millhaven, and Me http://www.showmedaily.org/2008/07/ethanol-millhaven-and-me.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Tue, 22 May 2012 19:02:29 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Bob Arthur http://www.showmedaily.org/2008/07/ethanol-millhaven-and-me.html/comment-page-1#comment-408 Bob Arthur Thu, 31 Jul 2008 16:00:02 +0000 http://www.showmedaily.org/?p=1117#comment-408 You have to be kidding if you believe the oil industry only receives $2 billion a year. That's a joke! Your credibility is gone! Add in oil depletion allowances, foreign income tax credits, accelerated depreciation and other breaks and the number dwarfs $2 billion. In fact, former CIA Director James Woolsey says the "preferential tax treatment the oil industry receives is worth more than $250 BILLION per year". And that does not count the cost of dollars and lives we give each day in places like Iraq and the Persian Gulf. And, even if you some how say the ethanol subsidy (which goes to gasoline/ethanol blenders not ethanol producers or farmers) must be attached to ethanol or corn farmers, that number is more than off set by a reduction in farm payments. Finally mandates? What do you call an industry which has few sellers (OPEC) of the basic product (oil) with just a handful of major oil companies which have two names now (Exxon/Mobile; Conoco/Phillips; BP/Amoco;etc.)? Not an open market for sure. There is no competition in the market place for gasoline save ethanol. Or in other words, ethanol breaks the oil mandate! OPEC is a cartel. The handful of major oil companies today also constitutes a defacto cartel. Cartels do not make an open market. An open market is characterized by many buyers and many sellers. The oil market is a monopolistic market, not an open one. Ethanol at least offers competition. If you don't think having competition in the market helps, just look at diesel fuel which has no substitute and is priced much higher than gasoline. It's obvious you've bought into Big Oil's mandate to use gasoline. I'm glad Congress and Missouri's legislature hasn't. Finally, regarding your statement about propaganda. There's an old saying in Missouri about your comments,that is "it sounds like the pot calling the kettle black!". Talk about Big Oil propaganda, you guys take the cake! You have to be kidding if you believe the oil industry only receives $2 billion a year. That’s a joke! Your credibility is gone! Add in oil depletion allowances, foreign income tax credits, accelerated depreciation and other breaks and the number dwarfs $2 billion. In fact, former CIA Director James Woolsey says the “preferential tax treatment the oil industry receives is worth more than $250 BILLION per year”. And that does not count the cost of dollars and lives we give each day in places like Iraq and the Persian Gulf. And, even if you some how say the ethanol subsidy (which goes to gasoline/ethanol blenders not ethanol producers or farmers) must be attached to ethanol or corn farmers, that number is more than off set by a reduction in farm payments.

Finally mandates? What do you call an industry which has few sellers (OPEC) of the basic product (oil) with just a handful of major oil companies which have two names now (Exxon/Mobile; Conoco/Phillips; BP/Amoco;etc.)? Not an open market for sure. There is no competition in the market place for gasoline save ethanol. Or in other words, ethanol breaks the oil mandate!

OPEC is a cartel. The handful of major oil companies today also constitutes a defacto cartel. Cartels do not make an open market. An open market is characterized by many buyers and many sellers. The oil market is a monopolistic market, not an open one. Ethanol at least offers competition. If you don’t think having competition in the market helps, just look at diesel fuel which has no substitute and is priced much higher than gasoline. It’s obvious you’ve bought into Big Oil’s mandate to use gasoline. I’m glad Congress and Missouri’s legislature hasn’t.

Finally, regarding your statement about propaganda. There’s an old saying in Missouri about your comments,that is “it sounds like the pot calling the kettle black!”. Talk about Big Oil propaganda, you guys take the cake!

]]> By: Justin H. http://www.showmedaily.org/2008/07/ethanol-millhaven-and-me.html/comment-page-1#comment-405 Justin H. Thu, 31 Jul 2008 00:56:10 +0000 http://www.showmedaily.org/?p=1117#comment-405 This is a really great post. The goal is not to point figures, but to present honest research about public policy. Clearly the ethanol mandate has been a mistake. This is a really great post. The goal is not to point figures, but to present honest research about public policy. Clearly the ethanol mandate has been a mistake.

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