08/21/06 Soaring gas prices

Soaring gas prices. I'm Greg Martin with today's Northwest Report. A spike in ethanol prices after the national switch-over from the water polluting gas additive MTBE this spring has the national media again pointing the finger at ethanol for high gas prices. In fact - a Washington Post Business article this week says 4.75 a gallon ethanol last spring is partly to blame for soaring gas prices. But according to Renewable Fuels Association spokesperson Matt Hartwig - that was the spot market. HARTWIG: What the Washington Post was talking about when citing 4.75 as a price for ethanol was the spot market. The spot market represents about 5% of the overall ethanol market. The rest of ethanol - Hartwig notes - is sold under long-term contracts. HARTWIG: The contract price for ethanol in the springtime was probably in the range of 1.80 to 2.20, give or take. That's a lot more realistic and a lot more reflective of what's going on in the marketplace. What's more - since the initial overreaction of refiners to replacing MTBE with ethanol - Hartwig says spot ethanol prices have fallen to about 2.50 a gallon - or around two-dollars after the 51-cent refiners tax credit. According to Hartwig - the truth is - record petroleum prices and diminished refining capacity are the real culprits behind high gas prices. HARTWIG: As well as continued driving patterns that are worsening at least leveling off, we're not seeing a decrease in the demand for gasoline. I mean those things have far more to do with the price of gasoline than the ethanol. Now with today's Food Forethought, here's Susan Allen. Now I am not a marriage counselor but I if I were I would suggest that couples might resolve their difference by going out for a burger. We know of course that men are from Mars and women, Venus yet both apparently inhabit the same planet when it comes to meal selections. Knowing that women are often the deciding factor in where families will eat out, fast food restaurants have attempted to woo us with smaller portions, chicken and specialty salads or baked potatoes. Yet new market research debunks the myth of "female friendly" selections, because the women polled reportedly ordered burgers, fries and pizza as frequently as their male counterparts. The only glaring disparity in the survey was the fact that men typically ate out more often than women. The average American male eats out 20 times a month compared to 16 for his female counterpart.. When it comes to the differences between men and women the only common ground might just be ground beef patty! Thanks Susan. That's today's Northwest Report. I'm Greg Martin on the Northwest Ag Information Network.