Kicking Tires, a blog for car aficionados, has posted about a rather interesting find from a study done by global management consulting firm Booz & Company.
Could the United States possibly become an energy exporter?
Kicking Tires suggests that with India’s population explosion, their need for gasoline is going to jump higher and higher, especially with more afforable vehicles coming on the market. At the same time, our demand for gasoline is decreasing due to higher costs across the board.
The result? America could be importing oil to sell gasoline to India. How’s that for a head-trip?
With all the shifts in energy needs and Americans strapped for cash, could this be possible in the next few years? Could a complete change in the way this country thinks about energy be far behind such a move? Put your thoughts in the comments.
Three of the agribusiness companies that make up the Alliance for Abundant Food and Energy are teaming up to find ways to use corn field leftovers for feed and bioenergy.
Archer Daniels Midland, Deere & Company and Monsanto Company say they will work together to “identify environmentally and economically sustainable methods for the harvest, storage and transport of corn stover that can be used as feed for animals, as biomass to generate steam and electricity or as a cellulosic feedstock for biofuel production.” Deere has already been working with POET’s Project Liberty on perfecting corn cob harvesting.
Executives from each of the three companies use lots of big words and scientific terms to hail this collaboration in a joint press release, but it’s really pretty simple. There is an abundant resource of crop residue that is left in corn fields every year after harvest that can be used to serve several needs at the same time. Currently, it’s all going back into the soil, which is important for erosion control and soil quality. But, these folks believe they can leave enough of the stover on the ground for conservation purposes and still utilize the rest for feed and energy.
The U.S. Department of Agriculture’s Secretary Ed Schafer has written a letter to the editor that appeared in the Wall Street Journal this morning.
Secretary Schafer begins by applauding the EPA’s recent decision to deny Texas Governor Rick Perry’s request to waive the Renewable Fuels Standard.
This decision has recently generated some critical commentary in your pages. I, however, support and applaud the EPA’s decision. Renewable energy is a tremendous American success story. We are the world leader in biofuels. Since 2000, U.S. ethanol production has quadrupled. Biodiesel production soared from two million gallons to 450 million last year. Cellulosic ethanol, which will derive fuel from non-food feedstocks, is moving into production.
Schafer also points out that the rising cost of grain in recent months is attributable to skyrocketing gasoline prices and other factors.
Yes, there are ripple effects, but the sharp rise in global grain prices in recent years is driven primarily by soaring energy costs, improved diets in rapidly developing nations, two years of bad weather in some countries, and new export restrictions in several nations. U.S. biofuels production contributed only an estimated 0.2%-0.6% to the 5.1% rise in U.S. consumer food costs.
Read the entire letter online here.
You’re probably familiar with comedian Bill Engvall’s signature bit “Here’s your sign” that pokes fun at people who ask dumb questions to which the answers should be obvious.
Well, the next time someone asks, “Why should we support domestic production of ethanol?” - here’s their sign, courtesy of the South Dakota Corn Utilization Council. They have several others as part of an advertising campaign that started earlier this month encouraging supporters to “sign up for ethanol.”
The campaign highlights the role of ethanol in increased energy security, economic development and decreased gas prices.
The goal for the group is to get at least 4,000 state residents to register their support at the web site signupforethanol.com but the website has been attracting hundreds of ethanol supporters nationwide. Names of people from at least 25 other states are listed on the website ethanol supporter scroll. States from east to west and north to south are represented - including California, New York, Florida, New Hampshire, Washington, Arizona and more.
Here’s your sign - the Middle East or the Midwest - the choice is yours.
An analyst with a major agricultural financial institution says “food versus fuel” is basically a misleading sound bite.
According to Karol Aure-Flynn, executive director of the Rabobank Food and Agribusiness Research and Advisory department, “The fallacy of the headline is that there is a direct competition between the two; that it’s either/or. The reality is that strong global economic growth has changed the demand equation for U.S. commodities.”
Aure-Flynn also noted in a recent Rabobank podcast that while prices at the farm level have increased this year, they have been outpaced by production costs for farmers.
“Farmers’ profitability doesn’t change retail prices. And farmers’ profitability isn’t guaranteed by high grain prices. The same factors that are lifting grain prices are lifting production costs,” said Aure-Flynn. “So, yes, the farm price index is at 162 percent of what it was 1990-1992, but at the same time the price index measuring what farmers pay — for services, farm wages — is 189 percent of base.”
Rabobank is a global financial services leader providing institutional and retail banking and agricultural finance solutions in key markets around the world.