Today in Biofuels Opinion: “Do you really think oil is not subsidized?”
July 18, 2008
Clifford D. May, president of the Foundation for the Defense of Democracies, a policy institute focusing on terrorism: “Do you really think oil is not subsidized? Former CIA director James Woolsey estimates that U.S. oil companies receive preferential tax treatment worth more than $250 billion a year — and that doesn’t include the military costs necessary to keep oil supplies flowing around the world. We do that because oil is a strategic commodity: Western economies cannot function without it. That will be true until the day oil is forced to compete with a variety of alternative fuels.”
Robert Zubrin, In Defense of Biofuels: “In the last five years, despite the nearly threefold growth of the corn ethanol industry—actually, because of it—the amount of corn grown in the United States has vastly increased.
“The U.S. corn crop grew by 45 percent, the production of distillers grain (a high-value animal feed made from the protein saved from the corn used for ethanol) quadrupled, and the net U.S. corn production of food for humans and feed for animals increased 34 percent….At bottom, the entire food versus fuel argument boils down to a Malthusian conceit—that there is only so much that can be grown, so if we grow more of one thing, we must necessarily grow less of something else. But this is simply false. Agriculture is not a zero-sum game.”
Today in Biofuels Opinion: Kissinger, Baker, Shultz, Cohen, Scowcroft, Nunn, Robb, 20 others sign call for new direction in US energy policy
July 17, 2008
Gen. James Jones, president of the Institute for 21st century Energy: “There’s an energy tsunami coming, and when you see it coming you better get on top of the wave, or you’re going to get crushed by it,”
Jones initiated an open letter which made 13 recommendations in energy efficiency, new domestic production and investment in renewable energy sources.
The letter said in part: “We must re-examine outdated and entrenched positions….We demand more energy and complain about high prices, but we restrict energy exploration and production. We embrace the promise of energy efficiency, but we are slow to make adjustments in our energy-intensive lifestyles.”
The letter was signed by Jones, former White House Chief of Staff Mack McLarty, Secretaries of State James Baker III and George Shultz, former Defense Secretaries Frank Carlucci, William Cohen, William Perry and James Schlesinger; former senior White House advisers Howard Baker, Robert “Bud” McFarlane, Kenneth Duberstein and Brent Scowcroft; former Energy Secretaries James Watkins and Spencer Abraham; former CIA Director James Woolsey; former Commerce Secretary Donald Evans; former Democratic Sens. J. Bennett Johnston, Sam Nunn and Charles Robb;, and former Republican Sen. George Allen.
A letter to the president of OPEC from the Canadian Renewable Fuels Association (CRFA), the European Bioethanol Fuel Associations, the Brazilian Sugarcane and Ethanol Industry Association (UNICA) and the US Renewable Fuels Association: “It has been widely reported that the Organization of Petroleum Exporting Countries (OPEC) believes “the intrusion of bioethanol on the market” is responsible for 40% of the rise in world oil prices. Since you, as the head of OPEC, provide no explanation for such a self-serving and misleading statement that goes counter to any independent analysis of the fuels market today, one can only conclude that OPEC views competition with biofuels as a direct threat to the cartel you have created and continue to maintain…Competition is the antidote for cartels. The growing volume of biofuels in the global fuels market is helping to keep world oil and gasoline prices lower than OPEC may like.”
Today in Biofuels Opinion: “Instead of sending $16.5 billion to the Mideast, we were able to send that money to the Midwest”
July 16, 2008
Ross Walker, Airbus engineering programme manager, alternative fuels: “With the cost of a barrel of oil at present levels, alternative fuels are now becoming viable…[by 2030, 30% of aviation fuels will be biofuels, and] to achieve this we must have international and cross-industry collaboration.”
Senator Ben Nelson of Nebraska: “6.5 billion gallons of ethanol took the place of 228 million barrels of oil for a savings of $16.5 billion. That means, instead of sending $16.5 billion to the Mideast, we were able to send that money to the Midwest. We must keep our eyes on the future and our goal of energy security, so we can control our own destiny and not be at the mercy of other countries for our energy supply.”
Today in Biofuels Opinion: “how many more farmers will be beguiled by biofuels? Resist? They’re here already! You’re next!”
July 15, 2008
Kenneth Rapoza in the Wall Street Journal: “RFA president Bob Dinneen argued that ethanol has played a central role in reducing oil imports and lowering gasoline prices. But that played right into Unica’s hands, because Unica’s argument is that if U.S. corn ethanol lowers gasoline prices, as Dinneen says, cheaper Brazilian ethanol would lower prices even more. While U.S. ethanol goes for around $2.90 a gallon, Brazilian ethanol goes for around $1.40 a gallon. Even with the $0.54 per gallon duty, Brazilian ethanol is around $0.90 cheaper per gallon.”
Harry Nicolaides, Eureka Street: “With many of the world’s poorest nations teetering on collapse because of rising food prices and civil unrest, how many more farmers will be beguiled — and subverted — by biofuel’s blue-sky promise before the speculative greening of the gold rush ends? Resist? They’re here already! You’re next!”
Today in Biofuels Opinion: “If we got the prices we anticipated — high $3s — everybody would be happy. Ethanol would be cruising along just fine.”
July 14, 2008
Governor Arnold Schwarzenegger of California, commenting on the Bush administrations refusal to pursue carbon dioxide regulation under the Clean Air Act: “Well, to be honest with you, if they would have done something this year, I would have thought it was bogus anyway… because you don’t change global warming and you don’t really have an effect by doing something six months before you leave office. I think that the way they have done it is much better, because it just really means basically this administration did not believe in global warming, or they did not believe that they should do anything about it since China is not doing anything about it and since India is not willing to do the same thing, so why should we do the same thing.”
Keith Collins, former chief economist of the USDA, now a consultant to Kraft Foods: “We expected stronger prices for corn. If we got the prices we anticipated — high $3s — everybody would be happy. Ethanol would be cruising along just fine.”
Today in Biofuels Opinion: “Debt markets remain closed and skeptical of new technologies”
July 11, 2008
Robert Vierhout, Secretary-General, Eurpean Bioethanol Fuel Association: “The application of a higher import duty on Brazilian ethanol and the use of more EU produced ethanol would go some way to tackling the sustainability concerns raised by the Gallagher report. In 2007 the UK consumed a total of 152.8 million litres of ethanol of which only 20 million litres came from British soil. The only UK produced ethanol came from British Sugar with a GHG saving of over 60% based on the calculation model as proposed by the European Commission.”
Martin Tobias, former CEO, Imperium Renewables and angel investor: “The primary problem of biofuels today is oversupply relative to RFS mandates causing refined biofuel prices to significantly lag refined petroleum products. More biofuels actually makes the problem worse. Political will supporting biofuels has weakened measurably over the last year. Liquid fuel distribution infrastructure has remained largely stangnant for over 30 years. Most mid and downstream assets are owned by companies with capital structures optimized for cash dividends as opposed to investment for growth. High blends of ethanol requires new distribution infrastructure all the way up and down the chain. Debt markets remain closed and skeptical of new technologies.”
Today in Biofuels Opinion: “I wish that [President Bush] had seen what I believe I see about natural gas….I think he was too focused on ethanol.”
July 10, 2008
T. Boone Pickens in the Wall Street Journal: “In addition to the plan I have proposed, I also want to see us explore all avenues and every energy alternative, from more R&D into batteries and fuel cells to development of solar, ethanol and biomass to more conservation. Drilling in the outer continental shelf should be considered as well, as we need to look at all options, recognizing that there is no silver bullet. I believe my plan can be accomplished within 10 years if this country takes decisive and bold steps immediately. I’d have to say that I wish that [President Bush] had seen what I believe I see about natural gas….I think he was too focused on ethanol.”
Note to readers: Follow the Pickens plan at the Biofuels Digest group page at pickensplan.com
Ben Lieberman, Senior Policy Analyst at The Heritage Foundation: “America’s energy policy has been on an ethanol binge, and now the hangover has begun. The federal renewable fuels mandate is an unfolding failure, and more Members of Congress are taking notice. If repeal of the mandate is not yet possible, Congress should at least freeze ethanol use at current levels while the nation reassesses its renewable fuels policy.”
Today in Biofuels Opinion: “These long supply chains are going to have to get shorter”
July 9, 2008
The Renewable Fuels Association (US), Canadian Renewable Fuels Association, European Bioethanol Fuel Association and the Brazilian Sugarcane Industry Association, in a letter to the G8 heads of state: “…the sudden and rapid increase in food prices around the world has multiple causes, not the least of which is oil already priced at $140 per barrel.
We would note that two food grains that have seen the most volatile markets, wheat and rice, are not significant feedstocks for biofuel production. Further, common biofuel feedstocks like corn or sugarcane are not produced on the same acres. Corn is not grown
in rice paddies.”
Environmental and food writer Michael Pollan: “I don’t know exactly what percentage of greenhouse gas we would reduce if everybody planted a garden, but it would be a percentage and it would be a help. If you go back to the victory garden moment in American history during World War II…within a year or two, we actually got up to producing forty percent of our produce from home gardens. No food is more local, no food requires less fossil fuel, and no food is more tasty or nutritious than food you grow yourself. So it’s not a trivial contribution.
“One source of our sense of powerlessness and frustration around climate change is that we are so accustomed to outsourcing so much of our lives to specialists of one kind or another, that the idea that we could reinvent the way we live, change our lifestyles, is absolutely daunting to people….One of the things gardening teaches is that you can actually feed yourself. How amazing, you’re not dependent on a huge, global system to feed yourself. I think where climate change is taking us is to a point where many of us will need to take care of ourselves a little better than we do now…These long supply chains are going to have to get shorter.”
Today in Biofuels Opinion: “Where did the other 95 cents go?”
July 8, 2008
Josh Tickell, director of the award-winning biofuels documentary Fields of Fuel: “Corn may be environmentally detrimental, but it is difficult to pin the systemic problems in our international markets solely on biofuels. One need only look at the escalating costs of the world’s other staple commodities, such as cement, steel, and coffee to reveal that escalating costs are not restricted to corn or corn-based products. By far the largest commodity price increase is not in corn or wheat or soy or housing — but rather in oil.”
Senator Christopher “Kit” Bond of Missouri: “According to the USDA, a box of cornflakes consists of less than a dime’s worth of corn and is accountable for less than 5 percent of the … price. Today at Gerbes grocery in Columbia, Mo., a 24-ounce box of cornflakes costs $3.69, which is up more than a dollar. If the corn in the cornflakes increases a nickel, why did the box of cornflakes increase over a dollar, and where did the other 95 cents go?”
Today in Biofuels Opinion: “40 percent of oil price increase due to ethanol”
July 7, 2008
Chakib Khelil, president of OPEC: “The intrusion of bioethanol on the market [is responsible for 40 percent of oil price increases]…The price of oil will rise again in the coming weeks…We have to follow the evolution of the dollar, because a 1% fall in the dollar means $4 more on the price of oil.”
Editorial in the Birmingham Press-Register: “Congress is pouring $3 billion a year in subsidies into ethanol-blended fuels. What are Americans getting in return, besides higher grocery prices? Nothing. Ethanol is less efficient than gasoline, which means you have to burn more fuel to drive the same number of miles. Ethanol doesn’t reduce pollution, either. Studies show pollution from the diesel fuel that powers the farm equipment needed to cultivate corn offsets the small air-quality gains from drivers filling up with the alternative fuel.
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