Business Week bullish on ADM, no mention of "ethanol bubble"
Calling ethanol a
"now-vital liquid", Business Week on Wednesday has an
entirely upbeat report on agribusiness giant ADM's recent profits, driven in part by surging prices of ethanol,
completely ignoring the warning of an "ethanol
bubble" we mentioned here yesterday. ADM is the largest producer of ethanol in the United States, even though
bioproducts (like ethanol) only account for one-fifth of the company’s operating profits, the magazine says.
Unsurprisingly, the increased price of ethanol is making gasoline-ethanol blends more expensive around the country. Business Week also mentions, using information from the American Petroleum Institute, that the U.S. produced just under 4 billion gallons of ethanol and consumed 139.6 billion gallons of gasoline in 2005. ADM also announced they would increase domestic production of biodiesel. Keeping even a little bit up to date on how the international business community views ethanol gives us a window into the now-vital liquid’s future.
[Source: Business Week, thanks to Joel A.]
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