GoodFuels
Posts By: Matt
Quick Shot
by Matt Hartwig on July 28, 2008Welcome Andrew Schuyler
Andrew Schuyler, Director of the Northeast Biofuels Collaborative, is that latest member of the GoodFuels team. He has worked as a reporter for several newspapers in the northeast, and served as Chief of Staff in the Massachusetts Senate.
During his seven-year tenure in state politics, Andrew succeeded in advancing several projects directly related to economic growth, environmental protection, and sustainable energy development. He also worked on a variety of issues that strengthened renewable energy standards, and was a founding member of the Berkshire Renewable Energy Collaborative.
Andrew has extensive relationships with policy makers, the press, and regulators, as well as a clear understanding of state and federal legislative processes.
He is a graduate of the University of Wisconsin-Madison, and the Rocky Mountain School of Photography and serves on the Board of Directors of the Massachusetts League of Environmental Voters.
Welcome, Andrew!
Balanced Research
by Matt Hartwig on July 15, 2008Voters want more ethanol
By a 2 to 1 margin, American voters support increasing the use of ethanol in our motor fuel supply, according to a poll released today by two top polling firms. Conducted by the Democratic firm of Greenberg Quinlan Rosner Research and the Republican firm Public Opinion Strategies, the poll shows that 59% of American voters want more ethanol.
In addition, the poll shows that voters are much smarter than the Grocery Manufacturers of America (GMA) and other ethanol critics give them credit for. When asked which factors were the driving force behind rising food prices, 49% of voters said it was the high price of gasoline.
Clearly, voters are seeing through the smoke and mirrors, weighing the merits of increasing ethanol use, and determining that ethanol is a critical component of our nation’s energy goals.
A memo outlining the results of the poll is available here.
Balanced Research
by Matt Hartwig on July 14, 2008Economist’s Error Fuels Confusion
Keith Collins, former U.S. Department of Agriculture chief economist, was wrongly quoted by mainstream media telling the EPA that ethanol production was responsible for a 30 percent rise in food costs. This error is still causing confusion long after the quote was made on June 23.
“Those media simply misinterpreted his findings,”
“Collins did say ethanol production’s use of so much corn had, in fact, had an impact on food prices. When Collins brought up the actual percentage, however, he was talking about ethanol’s part of last year’s 4.3 percent rise in food prices.”
“Ethanol was responsible for 1.8 percent, and other factors accounted for the rest of the 4.3 percent increase. That’s actually in line with what the current administration has been saying,” the K-State economist said. “More impacts are to come, too, but not the great impacts that many people expect.
The misleading quote by Collins (pictured) came on the same day as the end of the EPA’s public comment period on a request from Texas Gov. Rick Perry to suspend current Renewable Fuels Standard policies.
Woolverton added, “Reducing or eliminating the mandate would give the wrong message to alternative energy producers,” he said. “We´re going to need alternative energy in all of its forms.”
Fair Reporting
by Matt Hartwig on July 1, 2008USDA: More corn than expected
Farmers planted one million more acres of corn than expected in March, according to a USDA report released yesterday. This is great news for corn prices and the cost of many other crops. Corn and wheat prices fell yesterday when the news broke and there will be plenty of corn to go around for the 2008 harvest.
Farmers had expected to plant fewer crops than last year due to the flooding in the Midwest, but rallied despite poor predictions.
The acreage is the second-highest since 1944 after plantings last year surged to 93.6 million acres.
The AP reported that the price drop may have a small impact on the price of food, but that energy prices are still the primary reason for high food prices.
Dan Cekander, an analyst for Chicago-based Newedge USA, said grain prices are likely to have less of an impact on food inflation than other factors. Food costs climbed about 4 percent in fiscal 2007 which ended in July and Cekander said they could climb to as high as 6 to 7 percent.
“It’s more of a function of distribution and energy and other factors…,” he said.
Domestic Energy Production
by Matt Hartwig on June 25, 2008Texas Recipe for $5+ Gas
As many in the biofuels industry are aware, Texas Governor Rick Perry is asking the federal government to remove at least 4.5 billion gallons of ethanol from the marketplace. His motivation: the livestock and oil industries that play a prominent role in Texas politics. As the Associated Press reported yesterday, Texas’ top livestock producers including Pilgrim’s Pride CEO Bo Pilgrim (more than $200,000 over a 4 year period), are huge donors to Governor Perry.
What’s troubling about Governor Perry’s request is that it would do little to achieve his purported goals, namely improved profits for integrated livestock and meat processors. Governor Perry’s alma mater, Texas A&M, concluded in April that $100+ oil, not ethanol, is driving up the prices of food and feed. As ethanol is the only alternative available today having a meaningful impact on oil and gasoline demand and price, it would seem that Governor Perry’s push to abandon the American ethanol industry would only make the problems he claims to be addressing even worse.
According to a range of analyses, ethanol is saving Americans between $0.20 and $0.50 per gallon. By one estimate, a successful waiver by the state of Texas would result in gasoline prices soaring by some 30%. At today’s prices, that would be gasoline well over $5 per gallon. What’s more, ethanol is helping reduce both world oil demand by 1 million barrels a day as well as US oil demand by 440,00 barrels per day, and keeping prices of oil at least $21 a barrel cheaper than they otherwise would be.
If $5 gas is your goal, follow Governor Perry’s recipe. It’s a can’t miss.
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