GoodFuels
Quick Shot
by Matt Hartwig on May 30, 2008Ethanol Production Passes 550,000 b/d
America’s ethanol producers continue to rise up and meet the challenge of supplying a renewable alternative to gasoline and oil in the nation’s motor fuel mix.
According to Energy Information Administration data, ethanol production in the US for the month of March was 561,000 barrels per day, up more than 40,000 barrels per day from February.
The growth in biofuel production worldwide is having a significant impact on world oil markets. The International Energy Agency reported that more than 1 million barrels of oil would be needed to replace the volume of biofuels available on the world market today.
The EIA also takes stock of the impact of the ethanol on oil consumption. According to its calculations, ethanol is helping reduce US oil consumption by more than 330,000 b/d.
All of this means that biofuels is playing a critical role in keeping oil from soaring to $165 per barrel and gasoline below $5 a gallon.
Fair Reporting
by Jackie Helling on May 30, 2008Balanced Denver Post Editorial
The Denver Post published an editorial today that provides a clear-headed approach to thinking about ethanol production and the rising cost of corn. They start out by talking about the development of cellulosic ethanol while acknowledging the impact ethanol has on our addiction to oil and how it will benefit the local community:
It takes time for a new enterprise to work out the kinks. That’s why we continue to encourage the development of other agriculture byproducts, such as wood chips, switchgrass and cornstalks, to produce ethanol. Ethanol production brings jobs and eases our dependence on oil.
They go on to address that oil prices are the cause of increased production costs in industries like the cattle trade, but that ethanol is helping to ease prices at the pump.
Ethanol production is a conundrum worth chewing on. Gas prices are leaping daily, which increases costs to ship cattle as well as the feed. Ethanol is one way to ease some of that demand. Using more ag products in the process will be environmentally helpful as well as beneficial to the nation’s farmers… Even Fankhauser (Terry Fankhauser, executive vice president of the Colorado Cattlemen’s Association) acknowledges the economic benefits of ethanol production to the state.
This is definitely worth a read - it provides a refreshingly balanced viewpoint.
Misleading Research
by Cindy Zimmerman on May 29, 2008Need 4 FoodB4Fuel Disclosure
“Full disclosure” is a term often used by bloggers or other commentators – sometimes even by regular media – to note when they are talking about a subject in which they have a vested interest.
If you look at this site, for example, you will find on the side bar a link to our contributors. They include myself, my husband and partner Chuck, and two staff members of the Renewable Fuels Association – the sponsors of this blog. That is full disclosure. It tells you who we are and what we do. Yes, we have an agenda. It is to tell the good news about ethanol that often gets overlooked in all the negative hype that is being regurgitated by the media these days.
It seems like there is a need for full disclosure on a blog called “Foodb4fuel.com.” This “Recent News/Blog” link off the main “Foodb4fuel” website offers NO disclosure about its contributors, who are identified only as “foodb4fuel” or “kernel.”
Even the main website offers no information about who is behind the effort, although there are clues. Under the “Take Action” link, they offer a way to “compose and edit a letter to Administrator Johnson of the EPA and send cc faxes to your US Senators and Governor.” They’ll even start the letter for you and let you edit it!
They ask you to choose a category that “best represents your perspective.” Those choices include: consumer, poultry producer, cattle rancher, restauranteur (their incorrect spelling, not mine), environmentalist, concerned Texan, protein industry employee (what is that?), and supermarket employee.
According to informed sources, the website and blog are creations of the Glover Park Group, the PR firm hired by the Grocery Manufacturers Association for the express purpose of smearing ethanol. It would be nice if that were transparent.
Quick Shot
by Cindy Zimmerman on May 29, 2008Ag Leaders Weigh in on Ethanol Hype
Leaders of five major agricultural organizations and the head of the Renewable Fuels Association joined together Wednesday to try and dispel many of the accusations that have been levied against biofuels in recent months and emphasize the positive contributions of ethanol in particular.
“Instead of using ethanol as a scapegoat for increased food prices, we should be having a discussion about the business, economic and policy issues that are connected with the world of $130 plus per barrel oil,” said American Farm Bureau Federation president Bob Stallman. He said the country’s Renewable Fuels Standard passed by Congress in December was the “right thing to do and continues to be the right thing to do.”
Stallman was joined by Tom Buis of the National Farmers Union, in a rare show of unity for the two general farm organizations that are frequently at odds over policy issues. Buis listed his top six myths about higher prices being blamed on ethanol, including Mexican tortillas, pasta, rice, bagels, beer and movie theater tickets. “I’m tired of debating these myths,” said Buis. “The last thing we need to do on renewable energy is backslide again because 30 years from now we will be back talking again about our dependence on imported energy.”
Other farmer leaders from the National Corn Growers Association, National Association of Wheat Growers, and the National Sorghum Producers participated in the conference call with members of the news media, fielding questions from reporters at media outlets ranging from Reuters to the Capitol Press in Idaho.
Listen to the full 45 minute press conference here:
Balanced Research
by Matt Hartwig on May 29, 2008$160 for a barrel of oil?
World oil prices have been on steroids for the past several months. As oil prices set a record high almost daily, we now learn that if biofuels naysayers had their way, oil, gasoline and diesel prices would be a lot higher.
As it turns out, biofuels like ethanol are far more important to the world fuel market than the Grocery Manufacturers (GMA), OPEC countries and even some in the oil industry would like you to believe.
In a recent report from economist John Urbanchuk, the presence of biofuels around the world is keeping the price of oil 27.5% lower than it otherwise would be!
Just how much is that? Based on the average price last week, biofuels are trimming more than $35 of the price of barrel of oil. Without biofuels, the price of oil would be more than $160 a barrel and gasoline and diesel prices would be at levels never imagined.
So, when biofuel critics like GMA and Texas Governor Rick Perry suggest we should reduce or eliminate all together the amount of biofuel we use, they are really suggesting that we should let the price of oil - and therefore gasoline and diesel - continue to go higher.
How does $5 a gallon sound to you?
Ethanol News- Oil prices, weak dollar caused food price rally: study | Reuters.com
- Pennsylvania Bets on Biofuels
- AgWeb Blogs - Biofuel Chaos is Good Chaos
- VOA News - UN Reports Rising Energy Prices Spurs Green Gold Rush
- E85 Sales on the Rise
- Perry's airfare paid for by Poultry leader | Chron.com - Houston Chronicle
- Unleashing the power of corncobs - BostonHerald.com
- The Canadian Press: Harper says biofuels likely a small factor in rising cost of food
- Alabama Economist: Corn Is Not the Primary Cause Of Food Price Spikes
- Perry requested ethanol waiver after $100,000 gift to GOP group | Chron.com - Houston Chronicle