June 4, 2012
IMF Warning on Oil Prices Shows Urgent Need for Alternative Fuel Sources, Fuel Freedom Foundation Says – MarketWatch.
IRVINE, Calif., May 24, 2012 (BUSINESS WIRE) — The Fuel Freedom Foundation says that a new warning from the International Monetary Fund underscores the urgency of opening markets to competition from alternative fuels such as natural gas, ethanol, methanol and electricity. The IMF Working Paper, entitled “The Future of Oil: Geology versus Technology,” predicts that oil prices could permanently double in the next decade.
“The IMF report warns that a doubling in oil prices will send the global economy into ‘uncharted territory,’ which would spell disaster,” said Joseph A. Cannon, President of the Fuel Freedom Foundation. “Fortunately, disaster can be averted if we open our markets to competition from cheaper, cleaner, American-made alternative fuels to gasoline. This is the only way to bring down oil prices significantly and structurally, and ensure future economic growth.”
May 14, 2012
Open Fuel Standard: New Co-Sponsor: Representative Michael Fitzpatrick.
Rep. Michael Fitzpatrick is a Republican Congressman from the 8th district of Pennsylvania, a member of the House Republican Policy Committee, and the newest co-sponsor of the Open Fuel Standard Act.
March 12, 2012
America’s Energy Disaster – Robert Zubrin – National Review Online.
President Obama says his energy policy is a great success. In support, Democratic-party stalwart John Podesta trumpets the claim that the United States is now producing more oil than it imports. A recent article in the Bloomberg News goes even further, saying that the U.S. is now a net oil exporter. New York Times columnist Tom Friedman instructs us to rejoice: High oil prices are now good for the United States.
Unfortunately, none of this is true. For the record, according to the Department of Energy/Energy Information Agency February 2012 Monthly Energy Review, the United States currently consumes (November 2011 figures, p.52) 12.93 million barrels of oil per day (mpd) in its transportation sector, 4.55 mpd in its industrial sector, 1.159 mpd in its residential and commercial sectors, and 0.096 mpd in electrical-power generation, for a total consumption of 18.735 mpd. In contrast, (page 37) in 2011, the United States averaged a production rate of 5.671 mpd of crude oil, or 30 percent of its total consumption, for a net deficit of 13.064 mpd, or 4.77 billion barrels per year. At today’s oil price of $105 per barrel, the bill for these imports runs to $500 billion per year, a tax on our economy equal to 20 percent of what Americans pay the IRS, and a reduction in the nation’s GDP sufficient to account for a loss of 5 million jobs at an average salary of $100,000 per year each.
March 12, 2012
Robert McFarlane: A Flex-Fuel Mandate Is Pro-Market – WSJ.com.
The current election cycle and the rising price of gasoline have rekindled interest in energy security and how best to achieve it. We’ve had these spasms of interest and hand-wringing before—many times. And each time we believed we had identified a way to overcome our vulnerability to the disruption or unaffordable pricing of oil, the price would decline, we would become complacent again, and effective, long-term solutions were forgotten.
This time, however, the stakes go well beyond the price of a fill-up at the pump. They involve a predictable renewed recession and prolonged, severe economic hardship for all Americans. As we tackle this energy challenge again, if the outcome is to be any different it may help to start with a few facts:
• Petroleum products drive 97% of all air, sea and land transportation in our country. Oil is truly the lifeblood of every industrial economy. If goods don’t move, revenues stop, jobs are lost and economies collapse. Oil is a strategic commodity, an essential good which if disrupted or priced extravagantly can cause our economy to collapse.
• Unlike other essential commodities such as clothing and food, where we have choices, in transportation fuel we’re stuck with petroleum alone. It enjoys a monopoly.
• The price of oil is set by a foreign cartel. The Organization of Petroleum Exporting Countries (OPEC) owns almost 80% of global oil reserves yet produces only 36% of daily global supply. This dominant position enables OPEC to raise or lower their production to maintain the global supply-demand relationship that suits their interest. If U.S. oil companies produce more, OPEC will produce less.
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.
October 20, 2011
Ethanol Producer Magazine | EthanolProducer.com.
Calling their industries’ relationship a “productive and cordial” one, Renewable Fuels Association President and CEO Bob Dinneen and Mitch Bainwol, CEO of the Alliance of Automobile Manufacturers, issued a joint statement from the RFA’s annual meeting in Washington, D.C., asserting the two groups’ commitments to implementing renewable fuel technologies throughout the U.S. But while some progress has been made in getting the two industries to agree on certain items, the groups remain divided on many important issues.
“Both the automotive and ethanol industries are defined by their constant innovation and evolution,” the pair stated. “We firmly believe that America can secure its energy future and create jobs by investing in new vehicle and fuel technologies that harness the innovative power of American workers to redefine how we power our cars. Despite current differences over how to best increase the amount of ethanol included in America’s fuel supply, automotive and ethanol interests all agree that renewable fuels are a path down which American must head.”
October 20, 2011
Ethanol Producer Magazine | EthanolProducer.com.
A coalition of biofuel producers, technology providers, cleantech investors and supporting companies have formed a new lobby campaign focused on convincing lawmakers to open the U.S. fuel market to alternative fuels. The campaign, called FuelChoiceNow, supports the deployment of technologies that will enable all types of alternative fuels the opportunity to compete in the consumer fuel space, including methanol, natural gas, electricity and biofuels.
“The only way to free the American consumer from the vicious cycle of world oil price spikes is to give them a choice at the pump,” Matt Horton, CEO of alternative fuel pump retailer Propel Fuels, says. “There are alternatives, but we need to unleash them.”
September 30, 2011
Across the Aisle: The PSA Blog » National Security Experts Launch Energy Initiative.
Last week, the highest level extra-governmental group ever convened to address any public policy challenge met in Washington, D.C. to announce the launch of their new organization – the United States Energy Security Council – formed to advance American energy security. This bipartisan group of 20 influential former cabinet officials, military personnel, retired Senators, and prominent business leaders, includes three PSA Advisory Board members – Robert C. McFarlane, former National Security Advisor, John Lehman, former Secretary of the Navy, and Gary Hart, former Senator (D – Colo.).
At their launch event, USESC founders emphasized the importance of finding solutions to the nation’s current energy dilemma and described the risk associated with America’s reliance on oil as a sole transportation fuel. Across the bipartisan panel, members agreed that, in the interest of national and economic security, America must pursue strategies to diversify the fuel sources used in transportation – eliminating the decades old monopoly that oil has enjoyed in the U.S. transportation sector and diminishing the strategic importance of this resource. McFarlane was certain to point out, however, that the group is not “anti-oil,” but more accurately “pro-fuel choice.”
September 21, 2011
How to Weaken the Power of Foreign Oil – NYTimes.com.
OUR country has just gone through a sober national retrospective on the 9/11 attacks. Apart from the heartfelt honoring of those lost — on that day and since — what seemed most striking is our seeming passivity and indifference toward the well from which our enemies draw their political strength and financial power: the strategic importance of oil, which provides the wherewithal for a generational war against us, as we mutter diplomatic niceties.
Oil’s strategic importance stems from its virtual monopoly as a transportation fuel. Today, 97 percent of all air, sea and land transportation systems in the United States have only one option: petroleum-based products. For more than 35 years we have engaged in self-delusion, saying either that we have reserves here at home large enough to meet our needs, or that the OPEC cartel will keep prices affordable out of self-interest. Neither assumption has proved valid. While the Western Hemisphere’s reserves are substantial and growing, they pale in the face of OPEC’s, which are substantial enough to effectively determine global supply and thus the global price.
September 15, 2011
Either we break the cartel, or the cartel breaks us. The Open Fuel Standard bill needs to be passed.
via Achieving $2 Gas – Robert Zubrin – National Review Online.
Republican presidential contender Michele Bachman has said that if she is elected, gas prices will fall to $2 per gallon. Such promises have understandably been greeted with considerable skepticism. But $2 gas is exactly what America needs. The question is, how can we get it?
We can’t do it just by expanded domestic drilling. In order for gasoline prices to fall to $2 per gallon, oil prices must be cut to $50 per barrel. And oil prices are set globally, with the dominating influence being the OPEC oil cartel. Since 1973, this cartel, which controls 80 percent of the earth’s commercially viable oil reserves, has refused to expand production, thus keeping petroleum prices artificially high. While, with a more pro-business government, the United States might conceivably be able to expand its production by a million or two barrels per day, OPEC could easily counter by cutting its production to match, or more likely, by simply continuing its non-expansion policy and letting increased Chinese demand take care of the slack.