Archive for ‘Ethanol’

June 4, 2012

IMF Warning on Oil Prices Shows Urgent Need for Alternative Fuel Sources, Fuel Freedom Foundation Says – MarketWatch

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

Open Fuel Standard: New Co-Sponsor: Representative Michael Fitzpatrick.

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

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

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

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 17, 2012

How to Reduce Oil Prices – Robert Zubrin – National Review Online

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.

October 20, 2011

Ethanol Producer Magazine | EthanolProducer.com

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

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 – by Nathan Sermonis

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 30, 2011

Open Fuels Standard Act aims for 50% flex-fuel cars in US by 2015 : Biofuels Digest

Open Fuels Standard Act aims for 50% flex-fuel cars in US by 2015 : Biofuels Digest.

In Washington, Sen. Maria Cantwell joined Sen. Dick Lugar in introducing a bill to break oil’s monopoly over the U.S. transportation fuel industry by ensuring that most new vehicles in the United States are capable of running on a range of domestically produced alternative fuels starting in 2015.

The Open Fuels Standard Act requires that starting in 2015, 50% of new vehicles manufactured or sold in the United States be flex fuel capable – meaning able to run on non-petroleum fuels such as domestically-produced ethanol or methanol or other alcohols in addition to, or instead of, petroleum-based fuels.