is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist

Long lines at gasoline pump result from ethanol promo

Yogi Berra might have described the scene as déjà vu all over again — cars lined up for half a block or more, two abreast, waiting to reach the gas pumps.

Anyone old enough recalled the long lines of frustrated drivers back in the 1970s, when an Arab oil embargo created shortages and sent gasoline prices higher than anyone imagined they could go.

This line developed not from a shortfall, but from a recent ethanol promotion, sponsored by Kroger, General Motors, the Ethanol Promotion and Information Council, and Texas Corn Producers.

Folks gladly waited in line for a 50 cents per gallon savings at the Denton, Texas, Kroger fuel station.

In addition to the cheaper gas, motorists had a look at two new GM flex-fuel vehicles, a Tahoe SUV and a Colorado pickup, both equipped to run on 85 percent ethanol. An Indy-type racecar replica reminded folks of a Texas race scheduled for the weekend.

Indy cars now run on 100 percent ethanol, says David Gibson, executive director of the Texas Corn Producers Board.

Aimilar promotions in Houston, Dallas and San Antonio also drew good crowds, he says. “Similar events are going on across the country.”

The goal is to inform consumers that ethanol is available. Gasoline in the Dallas area contains 10 percent ethanol.

“We've heard no negatives about performance with the ethanol blend,” Gibson says. “Initially, we heard about logistics problem with transportation, infrastructure, and distribution bottlenecks.”

He says E-85 is cheaper than gasoline “where it's available. That's mostly along I-35 in Texas.”

Some potential customers call and ask when E-85 facilities will be available in more areas.

“Demand is growing every day and 12 new facilities offering E-85 should be on line by next spring,” Gibson says. “Kroger, HEB, and a few other chains are beginning to offer the blend.”

The demand already has been good for Texas farmers. Gibson says fall corn prices range from $3.75 to $3.80 a bushel. “That's $1 to $1.50 a bushel better than last year, and it's a significant impact on farm income.”

Much of the ethanol will be home-grown, with four plants either just beginning or well on the way to completion in Texas. Gibson says one plant in Hereford should be operational this fall, with two others on line in the High Plains by early to mid-2008.

Texas corn growers are poised for a good year, he says. “We're set to make a big crop — we have more acreage and more yield potential than anytime in the seven years I've been working the entire state. It could be one of the largest crops on record.”

Acreage, estimated at 2.1 to 2.2 million acres, will not set a new mark, but is close to an all-time high, Gibson says. Good soil moisture across most of the Texas corn production area has helped.

“We have a few dry spots and a few areas with flooding damage, but the crop looks good so far.”

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.