Access, Policy & Predictability Needed for Ethanol
“The 50th Anniversary of OPEC made our nation and others dependent on a few countries for oil – many that don’t have our best interest at heart,” said Tom Buis, CEO of Growth Energy during a press conference at the Farm Progress Show currently being held in Boone, Iowa.
OPEC was formed on September 14, 1960 and today, America’s dependence on oil from OPEC countries has put our country’s security at risk. One answer to this is ethanol; yet ethanol’s future in uncertain with several policies in jeopardy including the E15 waiver, ethanol tax credit and ethanol tariff.
The industry is currently being held hostage by a fickle federal policy and today, Washington is pretty much in a stalemate. “It’s not because there aren’t great ideas, or not great needs to move forward, but it’s a very politically competitive town,” explained Buis. “And both political parties want to win this next election. It’s like Iowa State playing Iowa in football. Neither side wants to see the other team score any points. The opportunity for bipartisan working relationships is not the most conducive at this time. Hopefully that changes after the elections.”
There is still some hope for this year, as Senator Reid (D-NV) has called for a lame duck sessions to help on November 15, 2010.
Buis has stressed that the ethanol industry doesn’t have a production problem, but a market access problem and passing these varied policies, especially the E15 waiver, will help to open up new markets. The simple act of doing this, says Buis, is that ethanol will help reduce an additional 7 billion gallons of ethanol per year. “It’s like saying to Hugo Chavez and Venezuelan oil, we’re not buying your oil any more.”
Iowa Ag Secretary Bill Northey, noted that just this week, an ethanol plant sold a gallon of ethanol for $1.62. “We actually have ethanol plants right now that are producing ethanol, selling ethanol, for less than the cost of gasoline and that’s without the tax credit.”
He continued, “Certainly we need some of those incentives to continue. We need some predictability, we need more than three months predictability with those incentives going off this December. We need a longer-term vision of what can happen out there.”
A longer term vision is definitely needed if America truly wants to meet is goal of achieving energy independence, and a major step to achieving this is passing more comprehensive policies including the ethanol tax credit, E15 waiver and flex-fuel vehicle policy.
You can listen to the Growth Energy press conference here. Growth Energy Press Conference During Farm Progress Show
4 Comments »
M dugger
This was an exchange of communications we all needed to hear. .Ethanol has the proven use ability by 2050 to be leading fuel for America and being the cornerstone of Energy Security for America. Ethanol becomes a sustainable process via corn to ethanol. The goal of workshops is a forum to discuss breakthrough technologies regarding product growth, expansion and positive cash flow, along with creating new career jobs. Technology, never used before, has the built in design to further farm sustainabiliy, support local infrastructure, produce energy security- right here in the midwest by farmers and can expand economic growth and control emissions. Legislation and seed funding is needed to promote new technology, and create energy security. Just like the presenter said, we have come a long way in ethanol. The time has come to gain the momentum and leap frog the competition and produce more ethanol to demonstrate ‘it can be done’ in America. There is a need for a ‘demonstration site’ for new technology never used before.
My research indicates this : Overview from EIA
According to the Oil and Gas Journal (OGJ), Brazil had 12.6 billion barrels of proven oil reserves in 2009, second-largest in South America after Venezuela. The offshore Campos and Santos Basins, located on the country’s southeast coast, contain the vast majority of Brazil’s proven reserves. In 2008, Brazil produced 2.4 million barrels per day (bbl/d) of oil, of which 76 percent was crude oil. Brazil’s oil production has risen steadily in recent years, with the country’s oil production in 2008 about 150,000 bbl/d (6 percent) higher than 2007. Based on its September 2009 Short-Term Energy Outlook, EIA forecasts Brazilian oil production to reach 2.61 million bbl/d in 2009 and 2.81 million bbl/d in 2010. Brazil’s oil consumption averaged 2.52 million bbl/d in 2008. As a result of this rising oil production and flat consumption growth, EIA expects that Brazil will become a net oil exporter in 2009.
What are we going to do??? Brazil’s Petrobras Brasileria SA agreed to pay $42.5 billion to the government for the rights to develop 5 billion barrels of offshore oil reserves to an average of $8.51 per barrel after a 2-weeks of negotiations. ALSO the energy department reported on 9-1-2010 that weekly gasoline output up 11,000bpd to 9.386 mln and gasoline blend stocks up 1.1 mln bbls at 149.2 mln — gasoline demand in the last 4 weeks was 9.36.mln bpd, up 1.9%y/y.
There is positive data that indicates corn could get to $5/bu within next six months. Corn is in the midst of a classic demand driven market. Just look at all the iowa plants that have foreign backing and hold a large percentage of ownership.
WE ALL NEED each other to make Ethanol a positive cash flow. The ethanol pipelines in Iowa are growing. A petroleum trade group in China is proposing that Beijing halt all corn-based ethanol incentives. Ethanol leaders and legislation leaders in congress need to set aside differences and have all ethanol plants be American owned, or else we will be come hostage of our own abilities. This research data is as of August 2010.
GO ETHANOL,,, AND GOD LOVE THE MIDWEST…
Leaders please truly LISTEN and ask for and use some CONSTITUENTS IDEAS that show positive cash flow, economic growth for new careers and creating a infrastructure to be filled by year 2050. THINK and VISION BIG…
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