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Las Vegas Business Press
Thursday, August 28, 2008
Oil company goes corny

By Ian Mylchreest
January 6, 2006

Chevron Corp. plans to begin selling fuel made mostly from ethanol in California this summer to test demand, reports the Los Angeles Times. Southern Nevada’s gasoline comes by pipeline from refineries in California, which means the price in both states track very closely.

The new concoction, called E85, is 85 percent ethanol and 15 percent gasoline. That practically inverts the usual proportions and greatly reduces the crude oil component in the price. The trial will begin at three stations.

The announcement has not pleased everyone. “I’m at a loss as to why Chevron would be doing this, unless it’s some sort of PR move,” U.S. Energy Department Economist Anthony Radich tells the paper. “That’s certainly what it sounds like.”

The company says it is a trial to test whether it is viable but the outlook isn’t good. E85 is unprofitable in California now because rising demand for ethanol has pushed prices for the additive above wholesale gasoline, the company says.





One Response to “Oil company goes corny”

Nothing new about E85 in Minnesota, where we have nearly 200 outlets statewide. Sales of cleaner-burning E85 are expected to double this year.



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