Energy Jeopardy Continues: And the Answer is Ethanol!
Posted: July 22, 2009
If you are looking for yet another reason why U.S. consumers should demand more aggressive action on the development of domestic fuels like ethanol it came out today with energy news from Texas.
Once a huge contributor to the nation’s energy needs, its contributions are in decline. In fact, the drilling rig count in Texas is down to 329 from 958 in August 2008, and employment dropped from 240,000 to 206,200.
Need more evidence? Oil production in Mexico has declined 12.8% in just one year, led by decline in heavy crude of 24,000b/d from April 182,000b/d from May 2008.
China’s oil demand up for 3rd month in June as latest data adds evidence that growth is resuming in the world’s second-biggest oil consumer. Chinese steel producers, which are energy intensive, are now operating at full capacity too so China may be on the verge of setting off another run-up in world oil prices.
Did anyone not see this coming? If we were playing Jeopardy the answer would be: “What are death, taxes, and higher gasoline prices?” Question: What are three things you can’t avoid? Unless of course we embrace alternative solutions like renewable ethanol.