Drowning Oil with Alcohol
People are seeing signs that the fed is easing up on interest rates and this has sent oil past $71 a barrel and analyst are looking for oil to soar past $80. The energy markets will be seeing all time profits again this year if the oil continues to sky rocket. Where can we put our little money to get in on this upward trend?
Ethanol is where many should start. Brazil will be a oil free country in 2007 because of their ethanol program and now the USA is moving in the same direction. Congress in July requires annual use of 7.5 billion gallons of ethanol and biodiesel by 2012. Investing in ethanol is getting attention from around the globe. Venture capital funds like Cascade Investment LLC owned by Bill Gates is putting $118 million in the ethanol company Pacific Ethanol Inc. There has been a wave of investments from Australia, China, Japan, and many other countries in the ethanol companies from the USA.
Farmers and investors around the midwest are putting up buildings to turn corn into clean-burning ethanol fuel. For years ethanol companies have been private and kept the common investors out. Today ethanol is fast becoming a must for personal investors as two
ethanol companies are going public with their companies.
Pacific Ethanol has tripled within 9 months, Novozymes and ADM (Archer Daniels Midland) has had a stock boost from ethanol, and The Andersons shares exploded all from having ethanol relations. Currently two companies VeraSun Energy (raising $150 million) and Aventine Renewable Energy (raising $450 million) have filed to go public. This where be the place to invest in ethanol since Aventine provides 13 percent of the ethanol in the USA.
Promoting ethanol is coming from carmakers themselves as GM is cashing in on their ‘live green, go yellow’ campaign and Ford, Toyota, Chrysler, and Honda are all working to provide consumers with vehicles that run on a 85 percent blend of ethanol.
Gains in oil have us in search of grain to produce a clean burning fuel that will help bring us towards using less oil. Invest in yourself by investing in ethanol while earning in the profit.