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Ethanol
 

Countries such as Brazil are dedicating up to 80% of their sugar cane crop for Ethanol production – leaving the remaining sugar for internal use and export for human consumption.

We are witnessing dramatic upward pressure on the price of sugar as demographic and geopolitical trends increase Ethanol demand - both issues are sufficient to maintain the upward trend on sugar - as it’s availability is dictated by the demand for ethanol.

Sugar cane is the most economic raw material to produce Ethanol… thus the dramatic upward pressure on the price of sugar.

World ethanol consumption has risen from the million’s of gallons in the 1980’s to the billion’s of gallons since the year 2000.

Motorists in the USA are opting to use ethanol; Brazil’s drive for self-sufficiency now accounts for approximately 1/3 of world production of ethanol; now China and India consume about 1/4 of the world’s production.

The United States uses about 10 times as much oil per capita as less developed countries such as India and China, yet those countries have almost 10 times as many people as the United States.

As they continue their development, the growth in oil demand will be unprecedented.

The ratio of high quality sweet crude (low sulfur) to low quality sour crude (high sulfur) is progressively deteriorating, increasing the cost of refining. At the same time, world demand for oil is set to increase 37% by 2030, according to the US-based Energy Information Administration's (EIA) annual report.

The geopolitical instability associated with terrorism and nationalizations has physically impaired the discovery, extraction and transportation of oil. There is no short-term expectation that this problem will abate.

There is a desire throuought the world to become more self-sufficient with Ethanol production and mandates for its production, and for automobiles to be manufactured ready to use it.

 

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