Right now oil might not look like its going higher and peak oil is just no longer a worry, but peak oil is very real. When the economy gets stable and then goes into recovery the competition for oil energy and automotive fuels is going to heat up again and include new India and China and Eastern Europe demand. Ethanol companies might not look so smart today but it can all change in a year. It would seem vlo has some idea of where this is all going. No one knows when the recession ends and, until job loss slows i would not say its over, but if we saw a prelude to peak oil in 2008 like i think, then ethanol will have its time. Not always easy to get the timing right always, but crude below $100 is something we should enjoy while it lasts. crude oil below $100 wont last more than perhaps 2 years. I also think the government wants flexible fuel supply with support from ethanol should supply lines get crimped at some time.