Big Oil should be in the business of magic considering their recent success with smoke and mirrors regarding the changing role of petroleum and ethanol in the United States. Their virtuosity at deception, illusions, and insubstantial explanations is unrivaled.
This highly profitable and clever global industry, and their well-paid minions, continues to feed the public a regular diet of misinformation with the finesse of a Civil War solider loading cannon with a ram.
I challenge you to scan some of the information below and walk away thinking that American Ethanol is a bad idea.
The United States will shortly surpass Saudi Arabia as the largest crude oil supplier when natural gas liquids and biofuels are taken into account. U.S. liquids production is expected to reach 12.1 million barrels a day, which is 300,000 barrels a day higher than sand land. Ethanol’s role in this transformation should not be taken lightly.
Our gasoline supply is now about 10% ethanol, displacing 462 million barrels of imported oil last year alone, according to Bob Dinneen of the Renewable Fuels Association. The ethanol industry now churns out more than 13 billion gallons of the biofuel while supporting more than 380,000 jobs and adding more than $43.4 billion to the gross domestic product.
Perhaps one of the biggest fabrications is the anti-ethanol faction telling the public we don’t need renewable fuels anymore given new oil extraction technology, better mileage vehicles and slack public demand. Does anybody really think world demand for transportation fuel will stay this low?
Roubini Global Economics notes in a recent report the U.S. is still vulnerable to oil price fluctuations and all the economic chaos that brings. “Heavy oil dependence still renders the country highly vulnerable to price fluctuations in the short-to-medium term, particularly as economic growth — and fuel demand – recovers.”
A report issued last month concluded that the United States’ rigid dependence on oil to fuel cars and trucks meant that Americans kept buying the stuff over the past decade, even as prices rose, at a cost of $1.2 trillion in additional federal debt.
And finally, the U.S. leads the world in advanced-biofuel development, accounting for more than two-thirds of ventures worldwide, according to a report from Navigant Research; While North America is No. 1 in terms of demand and investment. Here is a novel thought…why don’t we try going with our strengths for once, and ethanol appears to be a big one.