News Releases:

 

Consumers Save $142 A Year On Coasts,
$241 In Midwest, As Ethanol Production Extends
U.S. Fuel Supply and Holds Down Gas Prices

OMAHA, NE (May 8, 2008) — With gas prices in some cities nearing $4 a gallon, new research has confirmed that ethanol is saving U.S. drivers money. On the coasts, where gas prices are especially high, drivers are saving an average of $142 a year on regular unleaded. In the Midwest, they are saving $241 a year.

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More Americans Worry about Energy Issues, Poll Finds, Than Home Foreclosures, Jobs and Global Warming

Omaha, NE (April 23, 2008) — When it comes to energy, Americans worry most about dependence on foreign oil.

Almost half of the 1,200 voters polled by Peter D. Hart Research Associates Inc. rate imports one of their two biggest energy concerns. A distant second is the lack of viable alternatives to fossil fuels.

 

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05.07.08

OIL IN YOUR CORN FLAKES

Oil is getting a free pass in the food-v-fuel debate. Consider:

A $3 box of Corn Flakes contains 15 ounces of corn that cost 8 cents when bought from the farmer.

Meanwhile, U.S. farmers last year grew a record-setting 13.1 billion bushels of corn on 85 million acres. "Of that, 22% went to make about 7 billion gallons of ethanol," according to Business Week. "That still left enough corn to supply the domestic market, increase exports to record levels, and stockpile a 10% surplus."

So how has food gotten so expensive? Production, packaging and transportation, among other factors.

And what is the common denominator? Oil.

Oil prices topped out near $123 per barrel on Tuesday and Goldman Sachs predicted oil could rise as high as $200 within two years.

David Morris, vice-president of the Institute for Local Self-Reliance, says that "biofuels are a very, very small factor in rising food costs."

It's time to quit giving OPEC a free ride on escalating food costs and start showing support for a domestic industry that is creating American jobs, feeding the world, and leading the way toward greater freedom from oil tyranny.

Sources:

"Is Ethanol Getting a Bum Rap?" by John Carey, Business Week, May 1, 2008.

"Oil nears $123 on $200 oil prediction, supply concerns," by John Wilen, AP, May 6, 2008.

"Food vs. fuel a global myth," by Robert Zubrin and Gal Luft, Chicago Tribune, May 6, 2008.

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05.01.08

SAVINGS AT THE PUMP

The three remaining presidential candidates are arguing this week about how to give Americans price relief at the gas pump.

So it is worth noting that new research from Iowa State University has found that ethanol production has caused retail gasoline prices to be $0.29 to $0.40 per gallon lower than would otherwise be the case.

Those findings echo the assessment of Merrill Lynch commodity strategist Francisco Blanch, who says oil and gasoline prices would be about 15 percent higher if biofuel producers weren't increasing their output.

Either way, it's money you can take to the bank.

Sources:

"The Impact of Ethanol Production on U.S. and Regional Gasoline Prices and on the Profitability of the U.S. Oil Refinery Industry," by Xiaodong Du and Dermot J. Hayes; Iowa State University, Center for Agricultural and Rural Development; Working Paper 08-WP 467, April 2008.

 "As Biofuels Catch On, Next Task Is to Deal With Environmental, Economic Impact," by Patrick Barta, Wall Street Journal, March 24, 2008.

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04.24.08

Sensible Voters

With gasoline prices topping out this week at $3.50 per gallon for self-serve regular -- the highest average price that AAA has ever recorded -- energy is a very serious concern for a majority of Americans.

In fact, according to a recent survey by the highly regarded Hart Research organization, more U.S. voters worry about energy issues than home foreclosures, jobs or global warming.

Voters think the biggest energy concern facing the country -- bar none -- is our dependence on foreign oil. Yet they know we can't drill our way out of the problem.

Instead, a large majority favors a diversified energy strategy that includes government incentives to spur the development and use of renewable fuels like ethanol and biodiesel, along with other policies such as developing wind farms, mandating new efficiency standards and limiting greenhouse gas emissions.

That is very sensible.

Sources:

 Survey by Hart Research for the Renewable Fuels Now Coalition.

 

"Gas Prices Climbing With No End In Sight," CNN, April 22, 2008.

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04.22.08

       
Green Streak

The U.S. ethanol industry is not just growing; it is becoming more energy efficient and is improving its already light environmental footprint.

Between 2001 and 2006 -- a period in which annual production rose from 1.77 billion gallons to 4.9 billion gallons -- dry mill ethanol facilities posted a slew of efficiency gains, according to a new study:
       
~ Water consumption dropped by 26.6 percent.

~ Grid electricity use dropped 15.7 percent.

~ Total energy use dropped 21.8 percent.

In 2007 -- when production reached 6.5 billion gallons -- ethanol helped reduce carbon dioxide and greenhouse gas emissions by 10 million tons, equivalent to taking 1.5 million cars off the road.

That's quite a green streak.

Source:
"Analysis of the Efficiency of the U.S. Ethanol Industry 2007," by May Wu, Center for Transportation Research, Argonne National Laboratory, March 27, 2008.

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04.17.08

Common(Wealth) Sense

 

Governor Tim Kaine, of the Commonwealth of Virginia, has made public his response to a letter from a member of the Virginia House of Delegates who had requested a temporary waiver of the federal biofuels requirement. In the Governor's own words:

"The issues related to biofuels are complex. ... As you point out, production of ethanol ... uses a substantial amount of corn. This has been one factor affecting the price of corn. However, there are other factors that have a substantial effect on corn and other crop prices, including decreased production due to poor weather, ... increased fertilizer and diesel fuel costs and increasing worldwide demand. We have seen record prices for crops, such as wheat, that are not used for ethanol. ... Providing for a temporary waiver of the federal renewable fuels mandate will not change these other factors and therefore would not have a substantive effect on the cost of food stocks."

Governor Kaine's letter exhibits the kind of level-headed common sense that is so vital if well-meaning people are to find solutions to complicated problems. That's called leadership.

Read the letter in its entirety

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04.16.08

Price Check: Corn vs. Oil

With food prices rising, commentators are blaming biofuels, corn ethanol in particular. But all sense of proportion is being lost. The impact of biofuel production pales in comparison to factors like the price of oil. Consider some historical context:

In 1949, the price of corn averaged $1.24 per bushel. This morning (as of 9:05 a.m. Eastern Time), corn futures were going for $6.13 per bushel on the commodities market.

That's an increase of 394 percent in 59 years.

Now compare that to oil.

In 1949, it averaged $2.54 per barrel. This morning (at the same moment), it was going for $113.70 per barrel.

That's an increase of 4,376 percent in the same 59 years.

Petroleum products figure prominently in the price of food -- for agricultural production, packaging and transportation. So, in case anyone doubted it, with food inflation, the price of oil is a big fat elephant in the room.

Sources:

 "Fuel Choices, Food Crises and Finger-Pointing," by Andrew Martin, New York Times, April 15, 2008:

 U.S. Department of Agriculture, National Agricultural Statistics Service

 U.S. Department of Energy, Energy Information Administration, "Annual Energy Review 2006"

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04.08.08

But Did You Know?

Flex-fuel vehicles are nothing new. Did you know Henry Ford designed the Model T to run on ethanol, gasoline or a combination of the two? And did you know that his first automobile (the quadricycle) ran on pure ethanol?

Those in the know understand that ethanol has higher octane than pure gasoline. But did you know that in the 1920's, when gas became the motor fuel of choice, Standard Oil actually began adding ethanol to gasoline to increase octane and reduce engine knocking?

National security wonks talk about the importance of renewable fuels like ethanol for America's security. But did you know that in WWI ethanol demand skyrocketed to 50-60 million gallons per year?

And did you know that last year the production and use of 6.5 billion gallons of ethanol displaced the need for 228 million barrels of oil that would have cost $16 billion to import?

Not only is ethanol ready and available now -- it's been around and helping fuel America since before the Civil War.

Sources:

"Ethanol Timeline," U.S. Department of Energy Kids Page.

"Changing the Climate: Ethanol Industry Outlook 2008," Renewable Fuels Association.

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04.03.08

Just The Facts, Ma'am

A recent fact sheet issued by the U.S. Department of Energy busts the myths being peddled about biofuels. 

No need to repeat the myths. (After all, they?re myths because they aren't true.) Let's just serve up some facts:

* Biofuels burn cleaner than gasoline.

* Corn-based ethanol is just one of many potential sources of biofuel.

* Ethanol has the highest octane rating of any fuel.

* Each gallon of corn ethanol today delivers as much as 67 percent more energy than is used to produce it.

So: biofuels -- including ethanol -- are cleaner, help cars run smoothly, and have a positive energy balance. Oh, and they're American grown, American made and available now.

Those are the facts. Ma'am.

Source:

"Biofuels & Greenhouse Gas Emissions: Myths versus Facts," U.S. Department of Energy.

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04.01.08

Not a Day for a Daydream

Today, independent truckers are clogging the New Jersey turnpike by slowing down to 20 mph and promising a strike in other areas to protest high diesel prices.

Today, we are feeling the effects of gasoline prices which hit a new, all-time high on March 31.

Today, financial analysts continue to argue over ways to help repair America's economic health while average Americans simply want to hold on to their jobs, hoping they can continue to afford to drive to them. 

Today is not a day to dream, but to remember those realities that are making a positive difference economically to Americans.

Renewable fuels, such as ethanol, protect Americans from paying even higher prices at the pump -- as much as 15% -- according to Merrill Lynch commodity strategist, Francisco Blanch.

Renewable fuels, such as ethanol, create American jobs and boost local economies -- and not just farm and ethanol community economies. According to the South Carolina Petroleum Marketers Association, "many South Carolina businesses are currently using those (ethanol blending) incentives to build and start new businesses, hire new employees and keep gas prices lower."

Today's news reports make clearer than ever that without a diversified energy policy that reduces American dependence on foreign oil, prices will continue to go up and our economy will continue to lag. Renewable fuels, like ethanol, are making a difference and will continue to do so. And, it's here, clean, and available now.

Sources:

"Truckers Protest High Fuel Prices, Clog NJ Turnpike," WNBC.com, April 1, 2008.

"D.C. pumps oil leaders on gasoline," By David Ivanoich, Houston Chronicle, April 1, 2008.

"Ethanol and Beyond," Wall Street Journal, March 24, 2008.

"Marketer Group Asks Assembly To Stop Big Oil Takeover Of Ethanol," SC Hotline Press Releases, April 1, 2008.

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03.27.08

Altering the Gasoline Market

The growing supply of domestically produced renewable fuels like ethanol is the "primary structural factor" that may alter the U.S. gasoline market in the near term, according to a new report from the Consumer Federation of America.

In fact, it has gone a long way toward wiping out the shortfall in the country's refinery capacity -- that is, the difference between the amount of gasoline America demands and the amount oil refiners can produce. We normally have to make up that difference by importing gasoline instead of just oil.

Bill Day, a spokesman for Valero Energy Corp, the largest U.S. oil refiner, says his company foresees ethanol growth "offsetting gasoline imports to the U.S."

More proof that ethanol is making a difference today -- in a big way.

Source:

"Rising Gasoline Prices: Why Can't Consumers Catch A Break?" by Mark Cooper, Consumer Federation of America, March 2008.