Thank G-d its Wednesday!

Ah, wednesday! I love the smell of data in the morning... it smells like, like... victory.

U.S. crude oil imports averaged 8.1 million barrels per day last week, down 264 thousand barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged 8.5 million barrels per day, 1.4 million barrels per day below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 750 thousand barrels per day. Distillate fuel imports averaged 185 thousand barrels per day last week.
The four week period of '09 vs '08 had imports down 16.5% year over year. For the YEAR to date vs. the same period last year, imports are down 11.1%.

If it were not for the 643,000 bpd of ethanol produced in the U.S. and blended with gasoline, I believe we would be having some real trouble. I also think that ethanol is a very permanent guest at the table, and that within a few years the U.S. will be unable to export corn (the U.S. is now somewhere between 66.6% and 75% of the world export market of corn). Boy, are the Japanese gonna be p*ssed off when that comes to pass. Japan is the world's biggest corn importer, using the grain for domestic meat production. Since meat is roughly 3x the price in Japan as it is in the U.S., this should get really, really interesting.

But I digress...

How much more ethanol could we produce at a maximum? Good question. I will have a firm answer shortly, but I'll throw a guestimate out there - 2 million bpd (triple current production). The unintended consequence of which would be unacceptable, IMHO. On the other hand, had the 643k bpd of ethanol failed to show up, the consequences of that would not be so hot, either.

Ethanol and increased domestic production of crude has kept our feet out of the fire given the decline in imports. 2010 is the year in which the truth is likely to prevail. Or not. The plot thickens...

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It is very much worth watching, if you have the time. If not, the first 30 minutes gets the point across. I would say it is 75% accurate, and 25% agenda, though whose agenda I know not. Still, I liked it, and I think the documentarian makes a good case while only slightly abusing facts and truth. Like I said, it is at least 75% accurate, and that's 100% more than what you get from the media.

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I regularly beat up the Liberal Elite on this sight. I should save some of my fire for the non- working poor. I got some street cred in this area of study, a PhD., as it were. There are some good reasons poor people are poor. We all know what they are, I'll spare you the lecture. But here we are. We have created a significant portion of of Americans who believe in a "free lunch".

In case they are feeling smug, I would like to point out to the American elite that all revolutions eventually eat their young.

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That ethanol number keeps coming back to me. Something not right in the inventory data of gasoline blending components... I need to sleep on it.

Back soon.

libertariananimal (at) gmail (d0t) com