HAVE A GREAT MONDAY READERS!
The LSU Tigers took care of business Saturday night, although there were still quite a few mistakes. The 2nd quarter looked really bad for LSU when you consider Idaho is not a ranked team. But, they made adjustments at halftime and came out on fire the 2nd half. They really need to clean up some of these penalties and interceptions as they enter SEC play this upcoming Saturday against Auburn. Was good to see Miles let a lot of rookies play in the 4th quarter. They really need those reps to improve as backups. It also looks like true freshman Jeremy Hill is "the real deal" at running back. However, do hope Alfred Blue does not have a serious knee injury. He and Hillard are the two best of the stable of running backs so far this year.
I really wonder what's going wrong with the Saints?? The defense is not holding up their end of the bargain it appears. I also wonder how much Coach Payton's absence if affecting the team. They haven't been 0-2 to start the season in quite some time.
Here's another article on the search by the ethanol manufacturing industry to find an alternate feed stock to make ethanol other than corn. I sure wish they would as the increasingly higher and higher portion of the corn crop going to ethanol is causing continued increases in corn prices and all food products that use corn, directly or indirectly.
Will NOT post tomorrow night as the wife and I will be away on an overnight stay to get away for a day or so.
NOTE: I'll have a BIG announcement about the website hopefully later this week. We've been in a total re-design of the website for several months. We have only one page remaining to populate before we go "live" with the new site. I think you'll be very pleased with the new website look and additional information that will be included. I'll announce the launch the new and improved website here before we go live.
"Pete"
============================================================
09/13/2012 03:32 PM
Sugar
Beets, Sorghum Vie for Credibility as Ethanol Feedstocks
SustainableBusiness.com News
The prolonged
US drought has got us wondering about the
progress of ethanol feedstock alternatives to corn that would have
less of an impact on the global food supply.
So, we read
with interest that biofuels company Patriot Bioenergy Corp. – which is testing
a system for converting non-edible sugar beets into ethanol – is planning a
facility on 99 acres in Kentucky.
If its plans
are approved, the plant – which you can think of as a new-fangled distillery --
could be up and running in 24 to 28 months.
Patriot
Bioenergy will use natural gas to run its refining process. But we have mixed
feelings about the feedstock: genetically engineered Roundup-Ready sugar beets.
Those crops would be grown by farms surrounding the plant's site.
Roger Ford, the
CEO of Patriot, told local
reporters at press conference announcing the project:
"They're
phasing out the ethanol corn subsidy in America, and after 30 years, it's gone
as far as it can go. Why energy beets? First, it's been selectively bred as a
crop. We hope to produce two crops a year. It's such a high sugar yield crop,
and we can get on average 800-1,500 gallons an acre. We'll need less land to
produce it in the spring and fall months. And second, there's a longer timeline
in harvesting it. Once it comes in, it will continue to grow. Processing the
beets would use natural gas more efficiently than with corn. We'll get sugar
directly from the beets, and we won't need an extra step to convert the starch
from corn into sugar. So that process is removed, and you shorten the
distillation time," Ford said.
Patriot
Bioenergy's plan took shape after the US Department of Agriculturederegulated the GMO
sugar beets,
which are resistant to the herbicide glyphosate.
The plan still
has to clear a number of other administrative hurdles, including funding and
construction of certain infrastructure at the site. At full production, the
plant would create up to 120 green jobs, says Patriot Bioenergy.
Sorghum
Nears Federal Approval
The US may soon
approve sorghum, a grain used mainly for livestock feed, as a feedstock
alternative that could help create a cleaner version of ethanol.
The US
Environmental Protection Agency (EPA) has been accepting comments about the
grain's potential, which would give biofuels makers a domestic alternative to
sugar cane-based ethanol typically imported from Brazil. It hasn't said when it
will issue its policy ruling on sorghum, but the pressure for a decision is
mounting.
Almost all of
the nation's ethanol today is made from cornstarch, which has been a cause of
grave concern during the prolonged US drought this summer.
Sorghum is more
drought-tolerant than corn, and it requires one-third less water to cultivate.
Right now, it is mainly used to feed poultry, cattle and other livestock. The
downside is that there isn't as much of it as corn: right now, the number of
acres used for US corn outnumber those for sorghum by about 16 to one.
There is also a
matter of geographic: sorghum is grown primarily in states like Kansas,
Colorado, Nebraska, Oklahoma, South Dakota and Texas while most of the nation's
ethanol plants are centered around Iowa and Illinois. That means adopting
sorghum will take investment in new equipment.
Among the first
companies poised to upgrade their technology is Western Plains Energy LLC in
Oakley, Kansas, which makes conventional ethanol today, reports Associated
Press. The company is investing $30 million-$40 million in equipment that will
use methane for the distillation process and turn the waste materials into
fertilizer.
"We're
going to try to produce over 50 million gallons (of advanced ethanol) per
year," Curt Sheldon, the plant's chief accounting officer, told AP. "At today's
prices, we could probably pay for the project in two to three years."
Another company
already investing in sorghum production is Abengoa Bioenergy, which has converted its ethanol
plant in
Portales, New Mexico, to produce up to 30 million gallons per year of ethanol
from grain grown on the High Plains of West Texas and Eastern New Mexico.
Abengoa
Bioenergy is a subsidiary of Abengoa S.A. (ABG.MC). It is the largest European
ethanol producer, one of the largest producers in the U.S., and the only
worldwide bioethanol manufacturer with production facilities on three
continents.
The worldwide
ethanol market could reach 27.7 billion gallons by the end of 2012, according
to a new report from Global
Industry Analysts.
The US and
Brazil dominate the market in terms of production. Brazil is also a big
consumer, projected to use 7.45 billion gallons by 2015, while Canada is one of
the fastest growing markets.
For more on sorghum's
status as an ethanol feedstock:
Website: www.epa.gov/oms/fuels/renewablefuels/regulations.htm
Monday, September 17, 2012
Saturday, September 15, 2012
Biofuels: Ethanol producers look to cash in on US need
HAVE A GREAT SATURDAY READERS!
Game day again for our LSU Tigers. I don't expect to see the starters to play the whole game. This Idaho team should give Coach Miles the opportunity to give some playing time to the backups. The game is NOT broadcast on major television, but only on "Tiger Vision". The kickoff is set for 7:00 pm in "Death Valley". The game can also be listened to on the following radio stations, thanks to Dandy Don for the list:
Baton Rouge – Flagship WDGL-FM 98.1 95,000 watts
Alexandria KZMZ-FM 96.9 98,000 watts
Alexandria KSYL-AM 970 1,000 watts
Bogalusa WBOX-FM 92.9 3,000 watts
Cookeville, TN WATX-AM 1600 2,500 watts
Cookeville, TN WATX-FM 100.9 250 watts
Crossett, AR KWLT-FM 102.7 25,000 watts
Ferriday KFNV-FM 107.1 18,500 watts
Houma KCIL-FM 96.7 12,000 watts
Houma KJIN-AM 1490 1,000 watts
Jackson, MS WYAB-FM 103.9 5,000 watts
Jena KJNA-FM 102.7 6,000 watts
Lafayette/Opelousas KLWB-FM 103.7 25,000 watts
Lake Charles KKGB-FM 101.3 12,000 watts
Leesville KJAE-FM 93.5 7,500 watts
Monroe KLIP-FM 105.3 50,000 watts
Mobile, AL WABB-AM 1480 5,000 watts
New Orleans WWL-AM 870 50,000 watts
New Orleans WWL-FM 105.3 96,000 watts
Ruston KNBB-FM 97.7 50,000 watts
Shreveport KWKH-AM 1130 50,000 watts
Tyler, TX KZTK-FM 99.3 34,000 watts
Tylertown, MS WFCG-FM 107.3 2,200 watts
Vicksburg, MS WBBV-FM 101.3 13,000 watts
Ville Platte KVPI-FM 92.5 6,000 watts
Ville Platte KVPI-AM 1050 250 watts
SiriusXM Satellite Varies Satellite
Back to ethanol issues......Brazil is the largest producer of ethanol next to the US. But, their production is based on sugar cane, not corn. Last year, Brazil suffered climate issues like we are experiencing due to the severe drought in the corn belt states. However, Brazil is having a good year with sugar cane this year and is likely to export ethanol to the US. Here's an article about Brazil's ethanol :
"Pete"
==========================================================
Biofuels: Ethanol producers look to cash in on US need
By Joe Leahy
In the volatile world of US-Brazilian ethanol trade relations, what a difference a couple of seasons makes.
Last year, the talk was all about how the US, traditionally an importer of ethanol, was exporting significant amounts of the fuel to Brazil for the first time, thanks to seasonal and regulatory issues in Latin America’s largest economy.
Now, with a drought ravaging US corn producers, the shoe is on the other foot. Brazil’s renewable energy industry has another opportunity to take the initiative and try to gain market share in the US. But is the world’s second-largest exporter of ethanol in a position to seize the moment?
“It is a very big change – just earlier this year, we were expecting Brazil to import corn ethanol,” says Toby Cohen, director of Czarnikow, the sugar merchant.
(Read full article here: http://www.ft.com/intl/cms/s/0/ace68144-f8d4-11e1-8d92-00144feabdc0.html#axzz26EHXifxL
Game day again for our LSU Tigers. I don't expect to see the starters to play the whole game. This Idaho team should give Coach Miles the opportunity to give some playing time to the backups. The game is NOT broadcast on major television, but only on "Tiger Vision". The kickoff is set for 7:00 pm in "Death Valley". The game can also be listened to on the following radio stations, thanks to Dandy Don for the list:
Baton Rouge – Flagship WDGL-FM 98.1 95,000 watts
Alexandria KZMZ-FM 96.9 98,000 watts
Alexandria KSYL-AM 970 1,000 watts
Bogalusa WBOX-FM 92.9 3,000 watts
Cookeville, TN WATX-AM 1600 2,500 watts
Cookeville, TN WATX-FM 100.9 250 watts
Crossett, AR KWLT-FM 102.7 25,000 watts
Ferriday KFNV-FM 107.1 18,500 watts
Houma KCIL-FM 96.7 12,000 watts
Houma KJIN-AM 1490 1,000 watts
Jackson, MS WYAB-FM 103.9 5,000 watts
Jena KJNA-FM 102.7 6,000 watts
Lafayette/Opelousas KLWB-FM 103.7 25,000 watts
Lake Charles KKGB-FM 101.3 12,000 watts
Leesville KJAE-FM 93.5 7,500 watts
Monroe KLIP-FM 105.3 50,000 watts
Mobile, AL WABB-AM 1480 5,000 watts
New Orleans WWL-AM 870 50,000 watts
New Orleans WWL-FM 105.3 96,000 watts
Ruston KNBB-FM 97.7 50,000 watts
Shreveport KWKH-AM 1130 50,000 watts
Tyler, TX KZTK-FM 99.3 34,000 watts
Tylertown, MS WFCG-FM 107.3 2,200 watts
Vicksburg, MS WBBV-FM 101.3 13,000 watts
Ville Platte KVPI-FM 92.5 6,000 watts
Ville Platte KVPI-AM 1050 250 watts
SiriusXM Satellite Varies Satellite
Back to ethanol issues......Brazil is the largest producer of ethanol next to the US. But, their production is based on sugar cane, not corn. Last year, Brazil suffered climate issues like we are experiencing due to the severe drought in the corn belt states. However, Brazil is having a good year with sugar cane this year and is likely to export ethanol to the US. Here's an article about Brazil's ethanol :
"Pete"
==========================================================
Biofuels: Ethanol producers look to cash in on US need
By Joe Leahy
In the volatile world of US-Brazilian ethanol trade relations, what a difference a couple of seasons makes.
Last year, the talk was all about how the US, traditionally an importer of ethanol, was exporting significant amounts of the fuel to Brazil for the first time, thanks to seasonal and regulatory issues in Latin America’s largest economy.
Now, with a drought ravaging US corn producers, the shoe is on the other foot. Brazil’s renewable energy industry has another opportunity to take the initiative and try to gain market share in the US. But is the world’s second-largest exporter of ethanol in a position to seize the moment?
“It is a very big change – just earlier this year, we were expecting Brazil to import corn ethanol,” says Toby Cohen, director of Czarnikow, the sugar merchant.
(Read full article here: http://www.ft.com/intl/cms/s/0/ace68144-f8d4-11e1-8d92-00144feabdc0.html#axzz26EHXifxL
Thursday, September 13, 2012
Ethanol, Facing Difficult Political Atmosphere, Steps up Lobbying Activity
IT'S "TGIF" READERS.........HAVE A GREAT WEEKEND!
The political winds are starting to blow stronger and stronger AGAINST corn based ethanol. With subsidies expiring on Jan 1, 2012 and the "Dust Bowl 2" drought in the midwest, causing a large portion of the corn crop to wither, more and more members of Congress are starting to wonder if this "experiment" is really worth it?
Here's an article on the issue:
"Pete"
=====================================================
BY ANDREW HOLLAND ON SEP 13, 2012
Ethanol, Facing Difficult Political Atmosphere, Steps up Lobbying Activity
The ethanol industry has seen its position in Washington severely weakened over the last year. The modern ethanol industry is a creation of Congress; the Renewable Fuels Standard (RFS), the ethanol tax credit, and a tariff on imported ethanol were all responsible for creating the ethanol industry we see today. We should note that this industry has seen some remarkable successes: it has replaced almost 10% of the country’s gasoline fuel supply, with an impact on prices that is marginal at best.
It is important to note that more advanced biofuels still receive tax support: cellulosic ethanol receives $1.01 per gallon in tax credits, but that is set to expire at the end of this year. A Senate bill would extend that credit for a year, as well as retroactively re-instate the $1 per gallon biodiesel tax credit that expired at the end of last year. The fate of these credits is up in the air, as Congress will have to consider a broad range of tax policy questions before the ‘fiscal cliff’ coming this year.
Elimination of Tax Credit and Tariff
Back to traditional ethanol. The ethanol tax credit and the tariff were eliminated at the end of 2011. (See also: Understanding the Ethanol Tariff Issue) The tax credit provided a financial incentive for refiners to blend ethanol into fuel, while the tariff had the effect of allowing a domestic industry to grow without competition from more efficient sugar cane ethanol (most commonly from Brazil).
Now, with both of those gone, the sole remaining support for ethanol is the RFS. The RFS forces refiners to blend a certain amount of ethanol into the fuel supply (15.2 billion gallons in 2012), and includes penalties on refiners if they do not. Politically, this has had the effect of turning the refiners (represented in Washington by API, the American Petroleum Institute) against renewable fuel. They were never strongly in support of ethanol, but until last year they at least received tax credits for blending it.
Opposition is now starting to build against the RFS among ethanol’s usual opponents, ranging from API and the refiners to groups that compete with ethanol for access to corn like the American Meat Association or the Pork Producers. The ethanol industry sees this and realizes that the RFS will be in the crosshairs next year. So, as Congress has returned this week, the ethanol industry is trying to flex its muscles to head off any challenge.
Stepped-Up Lobbying
The Advanced Ethanol Council held a ‘fly-in’ this week to have its members meet with the Administration (including the White House) and Members of Congress. Growth Energy is also bringing in its members to support the industry – and the RFS specifically – on the Hill.
Even more interesting is a report that some major players in the industry have hired the Glover Park Group to craft a long-term communications campaign to support ethanol. Ironically, GPG is the lobbying/communications firm responsible for a 2008 campaign, supported by the Grocery Manufacturers Association, which demonized ethanol for pushing food prices up. GPG is a strongly Democratic firm, and this is a clear signal that the ethanol lobby sees Republicans moving away from the RFS (even though the Romney Campaign does not support a repeal), and they are looking to shore-up support among Democrats.
Overall, I think this will boil down to an argument about economics and politics. Ethanol has always won on the politics, but its losses on economics have undercut it. Now – as we see the price of ethanol falling even though the drought has harmed corn crops, there is less of a problem with the economics. This is a mature industry. But, if this becomes a partisan issue, then they are starting to lose the political argument. (See also: How to Fix the Broken Cellulosic Ethanol Incentive System)
The political winds are starting to blow stronger and stronger AGAINST corn based ethanol. With subsidies expiring on Jan 1, 2012 and the "Dust Bowl 2" drought in the midwest, causing a large portion of the corn crop to wither, more and more members of Congress are starting to wonder if this "experiment" is really worth it?
Here's an article on the issue:
"Pete"
=====================================================
BY ANDREW HOLLAND ON SEP 13, 2012
Ethanol, Facing Difficult Political Atmosphere, Steps up Lobbying Activity
The ethanol industry has seen its position in Washington severely weakened over the last year. The modern ethanol industry is a creation of Congress; the Renewable Fuels Standard (RFS), the ethanol tax credit, and a tariff on imported ethanol were all responsible for creating the ethanol industry we see today. We should note that this industry has seen some remarkable successes: it has replaced almost 10% of the country’s gasoline fuel supply, with an impact on prices that is marginal at best.
It is important to note that more advanced biofuels still receive tax support: cellulosic ethanol receives $1.01 per gallon in tax credits, but that is set to expire at the end of this year. A Senate bill would extend that credit for a year, as well as retroactively re-instate the $1 per gallon biodiesel tax credit that expired at the end of last year. The fate of these credits is up in the air, as Congress will have to consider a broad range of tax policy questions before the ‘fiscal cliff’ coming this year.
Elimination of Tax Credit and Tariff
Back to traditional ethanol. The ethanol tax credit and the tariff were eliminated at the end of 2011. (See also: Understanding the Ethanol Tariff Issue) The tax credit provided a financial incentive for refiners to blend ethanol into fuel, while the tariff had the effect of allowing a domestic industry to grow without competition from more efficient sugar cane ethanol (most commonly from Brazil).
Now, with both of those gone, the sole remaining support for ethanol is the RFS. The RFS forces refiners to blend a certain amount of ethanol into the fuel supply (15.2 billion gallons in 2012), and includes penalties on refiners if they do not. Politically, this has had the effect of turning the refiners (represented in Washington by API, the American Petroleum Institute) against renewable fuel. They were never strongly in support of ethanol, but until last year they at least received tax credits for blending it.
Opposition is now starting to build against the RFS among ethanol’s usual opponents, ranging from API and the refiners to groups that compete with ethanol for access to corn like the American Meat Association or the Pork Producers. The ethanol industry sees this and realizes that the RFS will be in the crosshairs next year. So, as Congress has returned this week, the ethanol industry is trying to flex its muscles to head off any challenge.
Stepped-Up Lobbying
The Advanced Ethanol Council held a ‘fly-in’ this week to have its members meet with the Administration (including the White House) and Members of Congress. Growth Energy is also bringing in its members to support the industry – and the RFS specifically – on the Hill.
Even more interesting is a report that some major players in the industry have hired the Glover Park Group to craft a long-term communications campaign to support ethanol. Ironically, GPG is the lobbying/communications firm responsible for a 2008 campaign, supported by the Grocery Manufacturers Association, which demonized ethanol for pushing food prices up. GPG is a strongly Democratic firm, and this is a clear signal that the ethanol lobby sees Republicans moving away from the RFS (even though the Romney Campaign does not support a repeal), and they are looking to shore-up support among Democrats.
Overall, I think this will boil down to an argument about economics and politics. Ethanol has always won on the politics, but its losses on economics have undercut it. Now – as we see the price of ethanol falling even though the drought has harmed corn crops, there is less of a problem with the economics. This is a mature industry. But, if this becomes a partisan issue, then they are starting to lose the political argument. (See also: How to Fix the Broken Cellulosic Ethanol Incentive System)
Wednesday, September 12, 2012
Networks Ignore Ethanol Mandates in Most Coverage of Historic Drought
We all know how the liberal media is in love with Obama and will NEVER say anything negative about him, no matter how bad he screws up. Well, the ethanol gas issue is another issue that the media will never explain and how it is causing food prices to skyrocket. After all, Obama's EPA is ethanol's "GOD" and they would NEVER say anything bad for fear it would offend Obama. When have we ever seen the media so biased before? I don't recall EVER in my lifetime.
Here's an article that proves the point I am making...........
"Pete"
==================================================
Networks Ignore Ethanol Mandates in Most Coverage of Historic Drought
By Liz Thatcher | August 27, 2012 |
The severe drought affecting the Midwest this year has caused the latest corn projections to be the lowest since 1995. With such a small corn crop, the government mandates that make some of that corn be used for ethanol make even less sense, and will raise prices even further.
The drought has been a big news story for the network morning and evening show in the past six months, earning 55 stories about facets of the drought including struggling farmers, predictions of increased food prices and coverage of wildfires. That figure did not include weather reports that also often mentioned drought.
But out of those 55 stories on ABC, CBS and NBC, ethanol from corn was rarely mentioned -- just 13 percent of the time (7 out of 55), and not all of those explained the ethanol mandates. Government mandates for ethanol have been pushing corn (and other grain) prices up for years now. But an explanation of government mandates that require billions of gallons of corn ethanol be produced each year was very difficult to find on the networks.
ABC’s “Good Morning America” passed up a perfect opportunity to examine the sense of the ethanol mandate on Aug. 18 when correspondent John Schriffen discussed the drought and how it has pushed gas prices even higher. Schriffen said, “So what’s caused the unpleasant end-of-summer surprise? Refinery outages of the Midwest, rising crude oil costs, and rising ethanol costs due to drought.”
The government requires that 13.2 billion gallons of corn ethanol be produced in 2012 according to the Associated Press.
Although such admissions were hard to find on network news programming, an editorial published on Aug. 6 in The Washington Post acknowledged what a problem the government mandate has been for the price of corn. “Federally supported ethanol is a key factor in the steady rise of corn prices since 2005; this year, with supplies likely to be short due to drought, ethanol’s impact on prices will be magnified.”
Ethanol was blamed for global food riots in 2008, because, as ABC’s David Muir put it: “Many farmers around the world, who once grew wheat and rice, now grow corn and sugar cane instead to produce ethanol, a more lucrative market.” Yet, in the past six months the networks could barely remember that the ethanol mandates could make corn even more scarce (and therefore expensive) during the current severe drought.
In an exception to most of the drought coverage, ABC reporter Ginger Zee showed just how dramatically the drought could affect prices and even mentioned the government’s part in it on Aug. 10 “World News with Diane Sawyer. Zee noted that “One estimate, an additional $300 to feed a family of four over the next year. That’s 75 bucks for every man, woman, and child. It’s not just food. Its fuel, bio fuels. By law, about 40 percent of the US feed corn is used to make ethanol, making shortages worse.”
As BMI has reported the news outlets once praised ethanol. When ethanol was first introduced to the scene, all three media outlets were overly enthusiastic about this supposedly green fuel. Katie Couric proclaimed it to be "the wave of the future." In 2010, however, the media’s attitude changed towards ethanol as the prices of groceries began to rise and the media finally realized the global and environmental costs of ethanol requirements.
A study released on Aug. 10, 2012, by Dr. Salim Furth and Alex Entz of The Heritage Foundation, criticized the mandates for hurting everyone during the drought. “Under a free market system, the pain of the drought would be spread around—corn growers, livestock farmers, fuel producers would earn a little less than usual, and the consumers of corn, meat, and gasoline would pay a little more … A government mandate, by contrast, fixes quantities and forces prices to rise rapidly when nature reduces the supply. In this case, livestock farmers and corn consumers—including the poor in America and abroad—bear the brunt of the inflexible ethanol mandate.”
Surprisingly, even the U.N. wants a “temporary” end to the mandate. They released a statement on Aug. 10 calling for the U.S. government to issue an “immediate, temporary suspension” of the ethanol mandate. José Graziano da Silva, the director general of the U.N.’s Food and Agriculture Organization, argued that this mandate will cause the drought to become a food shortage that is avoidable, if only this mandate is suspended.
According to Kenneth Green, a resident scholar and environmental scientist at American Enterprise Institute, it is “universally acknowledged” that ethanol has caused food and gasoline prices to rise. Fox News.com reported that the EPA is being pressured to reconsider the ethanol mandate, because of the drought. As of Aug. 10, 25 U.S. senators from both the Republican and Democrat parties have signed a letter addressed to the EPA asking the agency to reconsider its ethanol mandate. Additionally, 156 bipartisan members of the House of Representatives sent a petition to the EPA on Aug. 1, according to Newsmax.
Here's an article that proves the point I am making...........
"Pete"
==================================================
Networks Ignore Ethanol Mandates in Most Coverage of Historic Drought
By Liz Thatcher | August 27, 2012 |
The severe drought affecting the Midwest this year has caused the latest corn projections to be the lowest since 1995. With such a small corn crop, the government mandates that make some of that corn be used for ethanol make even less sense, and will raise prices even further.
The drought has been a big news story for the network morning and evening show in the past six months, earning 55 stories about facets of the drought including struggling farmers, predictions of increased food prices and coverage of wildfires. That figure did not include weather reports that also often mentioned drought.
But out of those 55 stories on ABC, CBS and NBC, ethanol from corn was rarely mentioned -- just 13 percent of the time (7 out of 55), and not all of those explained the ethanol mandates. Government mandates for ethanol have been pushing corn (and other grain) prices up for years now. But an explanation of government mandates that require billions of gallons of corn ethanol be produced each year was very difficult to find on the networks.
ABC’s “Good Morning America” passed up a perfect opportunity to examine the sense of the ethanol mandate on Aug. 18 when correspondent John Schriffen discussed the drought and how it has pushed gas prices even higher. Schriffen said, “So what’s caused the unpleasant end-of-summer surprise? Refinery outages of the Midwest, rising crude oil costs, and rising ethanol costs due to drought.”
The government requires that 13.2 billion gallons of corn ethanol be produced in 2012 according to the Associated Press.
Although such admissions were hard to find on network news programming, an editorial published on Aug. 6 in The Washington Post acknowledged what a problem the government mandate has been for the price of corn. “Federally supported ethanol is a key factor in the steady rise of corn prices since 2005; this year, with supplies likely to be short due to drought, ethanol’s impact on prices will be magnified.”
Ethanol was blamed for global food riots in 2008, because, as ABC’s David Muir put it: “Many farmers around the world, who once grew wheat and rice, now grow corn and sugar cane instead to produce ethanol, a more lucrative market.” Yet, in the past six months the networks could barely remember that the ethanol mandates could make corn even more scarce (and therefore expensive) during the current severe drought.
In an exception to most of the drought coverage, ABC reporter Ginger Zee showed just how dramatically the drought could affect prices and even mentioned the government’s part in it on Aug. 10 “World News with Diane Sawyer. Zee noted that “One estimate, an additional $300 to feed a family of four over the next year. That’s 75 bucks for every man, woman, and child. It’s not just food. Its fuel, bio fuels. By law, about 40 percent of the US feed corn is used to make ethanol, making shortages worse.”
As BMI has reported the news outlets once praised ethanol. When ethanol was first introduced to the scene, all three media outlets were overly enthusiastic about this supposedly green fuel. Katie Couric proclaimed it to be "the wave of the future." In 2010, however, the media’s attitude changed towards ethanol as the prices of groceries began to rise and the media finally realized the global and environmental costs of ethanol requirements.
A study released on Aug. 10, 2012, by Dr. Salim Furth and Alex Entz of The Heritage Foundation, criticized the mandates for hurting everyone during the drought. “Under a free market system, the pain of the drought would be spread around—corn growers, livestock farmers, fuel producers would earn a little less than usual, and the consumers of corn, meat, and gasoline would pay a little more … A government mandate, by contrast, fixes quantities and forces prices to rise rapidly when nature reduces the supply. In this case, livestock farmers and corn consumers—including the poor in America and abroad—bear the brunt of the inflexible ethanol mandate.”
Surprisingly, even the U.N. wants a “temporary” end to the mandate. They released a statement on Aug. 10 calling for the U.S. government to issue an “immediate, temporary suspension” of the ethanol mandate. José Graziano da Silva, the director general of the U.N.’s Food and Agriculture Organization, argued that this mandate will cause the drought to become a food shortage that is avoidable, if only this mandate is suspended.
According to Kenneth Green, a resident scholar and environmental scientist at American Enterprise Institute, it is “universally acknowledged” that ethanol has caused food and gasoline prices to rise. Fox News.com reported that the EPA is being pressured to reconsider the ethanol mandate, because of the drought. As of Aug. 10, 25 U.S. senators from both the Republican and Democrat parties have signed a letter addressed to the EPA asking the agency to reconsider its ethanol mandate. Additionally, 156 bipartisan members of the House of Representatives sent a petition to the EPA on Aug. 1, according to Newsmax.
Brazil sugar mills keep pedal to metal in August-Unica
HAVE A GREAT WEDNESDAY READERS!
Do hope everyone is enjoying this "almost fall" weather. It won't be long before we get into fall at last. For all you fishermen, if you have not tried fall fishing, you're missing out on some of the best fishing months of the year! I fish from late September until early March of the following year when the specs head to the coastal area for the spawn. The trout are more schooled up in the fall months when the water temperatures are lower. The trigger for trout to move into the upper bays and lakes is when the water temperature drops from the summer highs and approaches 70 deg F.
Some of you may not be aware that Brazil is real big in ethanol gasoline. They make their ethanol from sugar cane instead of corn! That would be a real HUGE benefit to Louisiana sugar cane farmers if the US would adopt this technology. It likely would not hurt sugar availability or prices as the "obese" issue is causing sugar to turn downward, plus it would take pressure off corn prices and food products made from corn. With this in mind, here's an article on Brazil's sugar cane ethanol production:
"Pete"
=============================================
Brazil sugar mills keep pedal to metal in August-Unica
Tue Sep 11, 2012 1:49pm EDT - Reuters
* Center-south mills at full crushing capacity since July
* Mills favoring sugar over ethanol due to returns
* Full-season output still trails same period last year (Adds background, details)
SAO PAULO, Sept 11 (Reuters) - Perfect weather in the second half of August allowed Brazil's center-south cane mills to run at full capacity and put out 3.34 million tonnes of sugar, up 12.4 percent from a year earlier, industry association Unica said on Tuesday.
Cane crushing was up 14 percent and ethanol output surged 10 percent over the period as well, but overall numbers for the season that began in April all remain down from last year due to a wet May and June that forced mills to shut down harvest for several days.
(Read full article here: http://www.reuters.com/article/2012/09/11/sugar-brazil-unica-idUSL1E8KBCKK20120911 )
Monday, September 10, 2012
Ethanol fantasy runs into reality
Concerns are continuing to grow over the use of corn for ethanol production. Brazil manufactures almost all of its ethanol from sugar cane. Sugar is plentiful, and growing concerns over Americans eating too much sugar might suggest that the US should perhaps consider sugar cane instead of corn for ethanol production.
Then, the huge finds of natural gas in several States across the Country (including a huge find in Red River Parish just south of Shreveport), combined with a successful process for extracting the gas from shale may put further pressure on corn ethanol. It is far easier to convert an existing vehicle to run on natural gas then re-designing it to run on higher levels of ethanol. It is projected that more and more vehicles will be converting to natural gas in the near future. The first natural gas fueling station I've seen in Louisiana opened up a several months ago on Airline Hwy in Kenner, just past the New Orleans Airport.
Meanwhile, here's another author who believe the "Ethanol Fantasy" is running into reality.
"Pete"
============================================================
Steffy: Ethanol fantasy runs into reality
By Loren Steffy
Updated 1:17 p.m., Friday, August 24, 2012
America's 5-year-old ethanol dream may be running out of gas.
The drought ravaging the Midwest is driving corn prices to record highs - rising 50 percent in the past six weeks - and sparking a renewed debate over federal mandates that require the blending of corn-based ethanol in gasoline.
The U.S. Environmental Protection Agency, which administers the ethanol mandate, has begun weighing requests from governors of some states to waive the requirement. Gov. Rick Perry requested a similar waiver a few years ago, but the EPA rejected the request because he couldn't prove it caused direct economic harm to Texas.
Farm groups argue the mandate is hurting meat and dairy producers by driving up feed costs and that it will ultimately lead to higher food prices worldwide. The United Nations' top food and agriculture expert agrees, recently joining a growing global chorus calling on the U.S. to suspend the mandate.
So far, the government estimates food prices will climb by no more than 4 percent this year, but those forecasts are likely to be revised upward.
Ethanol has also contributed, modestly, to surging gasoline prices. In the past month, prices for regular unleaded rose nationally an average of about 7 percent - to $3.72 a gallon from $3.48, according to the American Automobile Association - but ethanol's contribution to that, if any, has been no more than 6 cents a gallon, according to a recent study by the U.S. Energy Information Administration.
Ultimately, refiners have to pass on higher ethanol costs or absorb them.
The combined threat of higher food and fuel prices draws long-overdue scrutiny to the underlying legislative fantasy that spawned the ethanol mandate.
Five years ago, President George W. Bush championed and Congress adopted the Renewable Fuels Standard, which requires that 10 percent of gasoline stock comes from ethanol. The mandate is set to rise to 15 percent in a few years.
At the time, the strategy was to reduce American dependence on foreign oil by developing a vibrant domestic biofuels industry.
The Obama administration embraced the policy, which fit with its own strategy of promoting alternative energy.
Ethanol has been a fuel under fire for the better part of a century. As far back as the 1920s, its development was opposed by oil companies trying to keep the farm lobby out of the energy business, even as members of Congress fretted about ethanol's effect on food prices.
Despite the current international pressure to ease off the mandate, it isn't likely to go away, especially in an election year. Democrats aren't likely to abandon such a visible alternative fuels program months before a national election, and Republicans from farm states aren't likely to push for a repeal or temporary waiver, either.
Congress already allowed tax credits for ethanol production to expire last year.
"The mandate is all that's left protecting ethanol," said Stephen Arbogast, a University of Houston finance professor who has studied biofuel development. "It's a back-door price support for the farm lobby."
Large-scale ethanol production hasn't been profitable without government support for more than 30 years, and promises that developing corn ethanol would lead to new technology such as ethanol from switchgrass or other non-food plants haven't materialized. By now, so-called cellulosic ethanol was supposed to be ramping up to large-scale production. The technology remains mired at the developmental phase.
In other words, Congress adopted legislative incentives, betting on a nonexistent technology.
Given all the ethanol infrastructure that was built in the mandate's wake, it's unlikely the government is going to change course. Far more likely: raising the blending threshold to 15 percent will be postponed or abandoned.
The rise of natural gas reserves from shale deposits has largely undermined the call for boosting ethanol content. Converting trucks and fleet vehicles to run on natural gas, for example, is much easier than developing economically viable biofuels, Arbogast said.
"Forcing more ethanol into the diminishing gasoline pool may not be a great idea," he said.
Rising food prices may finally be the catalyst that gets Congress to wake up from its ethanol dream.
Sunday, September 9, 2012
Kuntz: My beef with ethanol
HAVE A GREAT MONDAY READERS!
GEAUX TIGERS!
Well, I wonder if there are any remaining "naysayers" about whether Zach Mettenberger is the "REAL DEAL" or not? Despite at least 5 well thrown passes dropped, the offense did what last year's team struggled to do. And, what can you say about the defense and special teams! Hang on Tiger Fans, we may be in for another GREAT season........I'm anxious for the first SEC game against Auburn on September 22nd.
And, how about those UL Monroe guys! They were a 23 point underdog and beat a highly ranked Arkansas team in OT. What a game.
BUT, the Saints fell victim to a VERY TALENTED "RG3" today. Man, this guy is without doubt the real deal...........
Before I forget, we should all remember and say a prayer for the Tulane defensive player from Destrehan who suffered a spinal cord break in their game on Saturday. He is supposed to have surgery early this week after the swelling subsides........he and another Tulane defender had a head to head collision when tackling an offensive player. There was a very similar accident in the ULM vs Arkansas game when two Arkansas players did the exact same thing. One of the Arkansas players had to be taken off the field in the cart and sent to a hospital in an ambulance. No word on his condition.
Here's a very interesting article...........what makes it even more interesting is that it appeared in an Iowa newspaper. This is the State that has a very large number of ethanol plants.
"Pete"
======================================================
Kuntz: My beef with ethanol
BY KATIE KUNTZ | SEPTEMBER 07, 2012 6:30 AM
Iowans are beginning to realize the very serious consequences of what has been the worst drought in Iowa history in many years and the fourth-driest July on global record.
Currently, with so little corn produced because of the drought, Iowans are going to have to make a choice between producing more ethanol or using the corn as feed. It is vital that Iowans support using corn to feed pork, cattle, and poultry, which in turn feed the masses, rather than used to create inefficient fuel.
As reported by KCRG, ethanol producers this year are feeling the squeeze and are creating ethanol because of the Renewable Energy Standard enforced by the Environmental Protection Agency. Ethanol plants fear they will be forced to close if requests to waive the standard pass this year.
Those who advocate the waiver include Iowa Pork Producers Association and the International Food Policy Research Institute. They argue that if the EPA continues to require nearly 40 percent of this years’ corn crop be used for biofuel production, it may cause a world food crisis.
According to the International Food Policy Research Institute, the United States is the leading exporter of corn and soybeans, and many nations rely heavily on our products for their livelihood.
The world needs Iowa farmers, not ethanol plants.
To illustrate the futility of ethanol, as of 2011, ethanol accounted for only about 9 percent of total gasoline consumed at the pump. It can actually decrease mileage by about 3.3 percent and should only be used in light-build cars produced after 2001, according to the U.S. Energy Information Administration. That is particularly unfortunate — the average age of a car today is 11 years, which means that a significant number of U.S. cars are older than 2001 and really shouldn’t use ethanol at all.
Though reducing ethanol may seem problematic to those looking for cleaner, cheaper energy, Iowans should not forget that there are a great many different sources of clean energy that also need our support, including solar and wind. Ethanol is neither the only option nor the most efficient, and because it is required by the EPA it is not necessarily the best market-based product, either.
Iowa can still feed the world and produce clean, renewable energy. Ethanol simply isn’t the way.
GEAUX TIGERS!
Well, I wonder if there are any remaining "naysayers" about whether Zach Mettenberger is the "REAL DEAL" or not? Despite at least 5 well thrown passes dropped, the offense did what last year's team struggled to do. And, what can you say about the defense and special teams! Hang on Tiger Fans, we may be in for another GREAT season........I'm anxious for the first SEC game against Auburn on September 22nd.
And, how about those UL Monroe guys! They were a 23 point underdog and beat a highly ranked Arkansas team in OT. What a game.
BUT, the Saints fell victim to a VERY TALENTED "RG3" today. Man, this guy is without doubt the real deal...........
Before I forget, we should all remember and say a prayer for the Tulane defensive player from Destrehan who suffered a spinal cord break in their game on Saturday. He is supposed to have surgery early this week after the swelling subsides........he and another Tulane defender had a head to head collision when tackling an offensive player. There was a very similar accident in the ULM vs Arkansas game when two Arkansas players did the exact same thing. One of the Arkansas players had to be taken off the field in the cart and sent to a hospital in an ambulance. No word on his condition.
Here's a very interesting article...........what makes it even more interesting is that it appeared in an Iowa newspaper. This is the State that has a very large number of ethanol plants.
"Pete"
======================================================
Kuntz: My beef with ethanol
BY KATIE KUNTZ | SEPTEMBER 07, 2012 6:30 AM
Iowans are beginning to realize the very serious consequences of what has been the worst drought in Iowa history in many years and the fourth-driest July on global record.
Currently, with so little corn produced because of the drought, Iowans are going to have to make a choice between producing more ethanol or using the corn as feed. It is vital that Iowans support using corn to feed pork, cattle, and poultry, which in turn feed the masses, rather than used to create inefficient fuel.
As reported by KCRG, ethanol producers this year are feeling the squeeze and are creating ethanol because of the Renewable Energy Standard enforced by the Environmental Protection Agency. Ethanol plants fear they will be forced to close if requests to waive the standard pass this year.
Those who advocate the waiver include Iowa Pork Producers Association and the International Food Policy Research Institute. They argue that if the EPA continues to require nearly 40 percent of this years’ corn crop be used for biofuel production, it may cause a world food crisis.
According to the International Food Policy Research Institute, the United States is the leading exporter of corn and soybeans, and many nations rely heavily on our products for their livelihood.
The world needs Iowa farmers, not ethanol plants.
To illustrate the futility of ethanol, as of 2011, ethanol accounted for only about 9 percent of total gasoline consumed at the pump. It can actually decrease mileage by about 3.3 percent and should only be used in light-build cars produced after 2001, according to the U.S. Energy Information Administration. That is particularly unfortunate — the average age of a car today is 11 years, which means that a significant number of U.S. cars are older than 2001 and really shouldn’t use ethanol at all.
Though reducing ethanol may seem problematic to those looking for cleaner, cheaper energy, Iowans should not forget that there are a great many different sources of clean energy that also need our support, including solar and wind. Ethanol is neither the only option nor the most efficient, and because it is required by the EPA it is not necessarily the best market-based product, either.
Iowa can still feed the world and produce clean, renewable energy. Ethanol simply isn’t the way.
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