The End Of An Era Already?

We have always been behind that fact that the corn fuel industry will go the way of the dinosaur as soon as the rest of the world wakes up and realizes what a crock of crap it is!

Gas prices in our area are down a whole dollar. The oil cartels made their money, then the speculators came in and jacked the prices up to make their money, and now they are out, OPEC is realizing that it might be wise to go back to profit by more quantity sold, thus lowering the prices.

What evidence do we have of this? Well, for one thing oil, once way over a $100 a barrel is now down again to under $85 a barrel. Ironically, the gas prices lowering do not reflect this yet. That will hit within the next 30 days, hopefully.

So how does this affect the E85 enthusiasts? Financial discord, short and simple. Now that oil is coming down again, watch how many "green" enthusiast drop their credo like a bad habit.

That leaves the post hippies, the college kids not actually producing money yet, and a few people who really do believe in "being green". Unfortunately for them that is not going to be enough to keep the E85 ball rolling. Below is an article from American Banker, proving the financiers are already scared to death and ready to bolt!

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In Alternative Fuel Lending, The Boom Seems To Be Over
By Robert Barba
AMERICAN BANKER
October 7, 2008.

NOTE: Below are only excerpts, but you can read the whole article by clicking the link above.

"A lot of community banks in the Corn Belt did most of the financing," said Alex Moglia, the president of Moglia Advisors, a Chicago consulting firm for alternative fuel companies. "Many of these banks have staked their future on biodiesel and ethanol, and they are now scared to death. And they should be."

The economics for ethanol plants have shifted. Corn prices hit record highs over the summer and have softened only slightly since. Constructing ethanol plants has grown more expensive, and an ever-increasing supply of ethanol has outpaced demand and kept prices down."