Sunday, July 13, 2014

Energy Policy Ideology Driven : Progressives Increase Security Risks

Why is this still not understood by the general population, even though they do not want to buy biofuel products, Ethanol, that is forced into their gasoline? The biofuels that have been mandated by the Obama administration has nothing to do about saving energy or becoming independent from foreign suppliers of fossil energy, this is about ideology, the control of the options that are available to the average citizen.

This is the same ideology Mr Obama used in the design of ObamaCare.

Given this agenda, it isn't difficulty to understand why Mr Obama has refused to approve the XL pipe line and opened federal lands for explorations and extraction of fossil energy. He has stated on many occasions he doesn't like this country as it was founded, too much freedom of choice and liberty that is guaranteed by our Constitution.

Mr Obama in 2009 : "The Constitution has a problem in that it states what the government can't do to the citizens, but not what the government can do for the citizens."

Another good question to ask is why is it up to one man to make a decision that effects hundred of millions of people and our national security?

Biofuel Mandate Will Raise Gas Prices
Source: David Kreutzer, "This Standard in One Reason the Price of Gas Will Increase," Daily Signal, June 30, 2014.

July 11, 2014

The Congressional Budget Office (CBO) has estimated that gasoline prices will increase by 13 cents to 26 cents per gallon by 2017 if the Renewable Fuels Standard remains unchanged, according to the Daily Signal.

The Renewable Fuels Standard (RFS) encourages increased production of various forms of ethanol and biodiesel, and it mandates that fuel contain a certain amount of renewable fuel. But despite the fact that consumers do not want these fuels (and that advanced biofuels have failed to meet production and use targets), the oil industry is forced to produce them.
  • RFS advocates promised that production of cellulosic ethanol (made from non-edible plant material) would be able to match projected use, but they were radically wrong. Cellulosic ethanol has been largely unsuccessful.
  • While corn producers have been able to produce plenty of corn-ethanol, the low energy content in each gallon makes the fuel unattractive.
  • Refiners cannot legally add any more ethanol to E10 gasoline (10 percent ethanol, 90 percent gasoline), as it can only contain up to 10 percent ethanol.
  • Refiners are having a difficult time getting consumers to buy their 85 percent ethanol blend (E85 -- 85 percent ethanol, 15 percent gasoline) without selling it below production costs.
In order to meet RFS consumption targets, the CBO estimates that refiners would have to lower the price of E85 by as much as $1.27 per gallon to encourage sales. To do this, they would have to raise the price of their lower-ethanol content gasoline.

Almost 40 percent of American corn goes towards ethanol, not food, production. Hence, the RFS drives up commodity prices, food prices and the cost of both gasoline -- providing little environmental benefit along the way.
 

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