January 20, 2012
LUFT: Market-based future for ethanol – Washington Times.
Domestic product is critical insurance policy against oil shocks
For years, ethanol has been the fuel free marketers loved to hate. Much of this is for good reason. Ethanol represented what most Americans dislike about Washington: undue government intervention in the free market, abuse of taxpayer dollars and political favoritism. The result is that for many people, ethanol is identified with pork and corruption rather than with energy security.
ut as of January 2012, Congress has ended the 30-year practice of putting $6 billion a year,known as the Volumetric Ethanol Excise Tax Credit, into the pockets of big oil companies for the ethanol blended into our fuel. Also finished is the 54-cent-per-gallon import tariff on Brazilian sugarcane ethanol. Now that ethanol has lost these protectionist measures, intellectual consistency warrants that free marketers continue to make wrong right. Unsubsidized ethanol should be able to compete with unsubsidized gasoline, methanol and other fuels at the pump so consumers can choose to purchase the cheapest fuel. Today, this cannot be done since most of the cars sold in the United States are blocked from burning anything other than gasoline.
January 18, 2012
Cutting Coal Would be ‘Irresponsible’ « Behind The Plug.
It’s no secret that coal is important to the American economy and energy sector. The coal industry is responsible for more than 550,000 jobs across the country—including the jobs of Americans who are working to develop and implement clean coal technology.
But still some critics argue we should simply flip the off switch on coal, without knowing the full consequences.
January 17, 2012
How to Reduce Oil Prices – Robert Zubrin – National Review Online.
The United States is by far the world’s leading oil importer. Thus, when the price of oil goes up, our economy is severely taxed. At the beginning of 2011, many economists were talking about an emerging U.S. economic recovery. Yet by spring, as oil prices climbed above $100 per barrel, it became apparent to all who were paying attention that no escape from recession was in sight.
The economic impact of oil prices on the American economy is shown on the graph below, which compares oil prices (adjusted for inflation to 2010 dollars) to the unemployment rate from 1970 to the present. Every oil-price hike for the past four decades, including those in 1973, 1979, 1991, 2001, and 2008, was followed shortly afterwards by a sharp rise in American unemployment.
January 5, 2012
Oil prices: What happens if Iran shuts down the Strait of Hormuz? – CSMonitor.com.
If the rhetoric doesn’t calm down, it may not be long before the price of oil moves into the $110- to $125-a-barrel range, energy analysts say.
At issue is a significant amount of the world’s oil that moves by sea. In 2011, about 17 million barrels of oil per day, or about 35 percent of the world’s seaborne traded oil, moved through the Strait of Hormuz, the US Energy Information Administration estimates. Much of this oil flows to Asia – Japan, China, India, and other emerging economies. But some of the oil flows to Europe, and a relatively small amount – some 1.1 million barrels per day – goes to the United States.
January 5, 2012
Oil Price Would Skyrocket if Iran Closed the Strait of Hormuz – Yahoo! Finance.
HOUSTON — If Iran were to follow through with its threat to blockade the Strait of Hormuz, a vital transit route for almost one-fifth of the oil traded globally, the impact would be immediate: Energy analysts say the price of oil would start to soar and could rise 50 percent or more within days.