Category Archives: energy

Food or Fuel?

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That’s the choice being forced on Americans by the push for “clean” fuel for our cars, even as the Left and the Progressive-Democratic Party push for elimination of gasoline-burning cars. Dave Loos, Illinois Corn Growers Association’s Director of Biofuels and Research, actually is proud of that diversion of food to fuel.

Illinois has 13 ethanol plants that can produce 1.6 to 1.7 billion gallons of ethanol annually.

A bushel of corn produces 2.8 gallons of ethanol. That’s roughly 590 million bushels of corn diverted from food in Illinois alone. Illinois corn farmers produced 2.13 billion bushels of corn in 2019. The equivalent (because it’s not only Illinois corn in those plants) of more than 27% of Illinois’ corn production is diverted away from food production in Illinois’ plants.

Food or fuel? Food—corn—diverted from Americans’ tables and from ranchers’ animal feed (and so diversion of meat from Americans’ tables) is being sacrificed to produce ethanol for vehicles that are intended to not exist in any great number in a few short years.

And this doesn’t address the environmental and economic damage done by the Renewable Fuel Standard—the Federal government’s ethanol mandate. From Environmental outcomes of the US Renewable Fuel Standard, published in the Proceedings of the National Academy of Sciences last winter:

[T]he RFS increased corn prices by 30% and the prices of other crops by 20%, which, in turn, expanded US corn cultivation by 2.8 Mha (8.7%) and total cropland by 2.1 Mha (2.4%) in the years following policy enactment (2008 to 2016). These changes increased annual nationwide fertilizer use by 3 to 8%, increased water quality degradants by 3 to 5%, and caused enough domestic land use change emissions such that the carbon intensity of corn ethanol produced under the RFS is no less than gasoline and likely at least 24% higher.

That’s an example of the irrationality of Left and of their politicians.

In a Nutshell

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In a Wall Street Journal article on the rising price of natural gas resulting from the current spate of hot weather, there’s this regarding the broader role of natural gas prices in inflation.

Pricier natural gas adds not just to the cost of dialing down the thermostat but also to that for making fertilizer, steel, cement, plastic, and glass.

And, through that fertilizer price increase, the cost of food—directly in the cost of wheat-, corn-, soya bean-based foodstuffs, and indirectly in the cost of beef, chicken, and other meat animals that are fed these plants.

And, through corn’s role in ethanol production, the cost of fuel.

Which is pretty much the full reach of our economy.

The inflation resulting from limits on natural gas production also results from similar limits on oil and coal production.

But hey, we can all just go out and buy electric cars….

Energy Crisis—It’s What We Deserve

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Ignorant peasants that we are, we’re too dependent on fossil fuels. High prices and energy shortages are our due. The words of folks like the Sierra Club’s personage are just—to coin a phrase—code words for “stop arguing, and do it our way.”

Here’s Kelly Sheehan, Sierra Club’s Senior Director of Energy Campaigns:

Concerns about energy shortages in Europe and the spiking fossil fuel costs Americans are experiencing are both symptoms of our continued reliance on fossil fuels[.]

Shape up, guys. She added this:

As long as we rely on volatile global commodities like oil and gas, we’ll always be vulnerable to geopolitics and the whims of greedy fossil fuel executives.

Yeah, because making profits is so evil. Never mind that profit is what starts and grows companies, starts and grows supporting companies, starts and grows employment, starts and grows companies that cater to the needs and wishes of those employees—creates and increases prosperity all around.

Oh, and that volatility? Much, if not most, of that comes from the uncertain, varied, and varying regulations applied, adjusted, withdrawn by virtue-signaling government personnel and from the uncertainty of granting (and later withdrawing) exploration and production leases and permits for a host of fossil fuel-related projects also effected by virtue-signaling government personnel.

Geopolitics? The instability here is amply illustrated by the Netherlands government’s attack on farming(!).

Inflation and the high cost of energy, from gasoline and diesel to fuel our transportation and shipping vehicles to electricity and natural gas to heat and cool our homes and work places, are most assuredly on the ballot this fall and will be there still in the fall of 2024.

Biden to Oil Producers: Produce More

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Also Biden to oil producers: you can’t drill, though.

The Biden administration plans to block new offshore oil drilling in the Atlantic and Pacific oceans….

Produce more, but…. This is on top of the existing slow-walking and outright sitting on the myriad permits required to act on existing leases.

Oh, wait….

The proposal released by the Interior Department on Friday evening would allow as many as 11 oil lease sales for offshore drilling over the course of five years.

As many as 11 of them—a couple a year over those five years. Never mind that Biden’s administration cannot be trusted to grant the permits required for those leases to have a chance.

Never mind that it takes years, once the permits are granted, to drill a producing well, or that not all drilling will result in a producing well.

Never mind that the Biden administration cannot be trusted to not cancel those leases later in the name of its drive to the Liberal World Order.

Never mind that even if all five of those years are available to production, they’re not enough for the oil producers to recoup the costs of the exploration and subsequent drilling for effect.

That’s the duplicity of President Joe Biden (D) in his cynical pretense to be “doing everything he can” to reduce the cost of gasoline at the pump and of energy generally.

No, He’s Not

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Energy Secretary Jennifer Granholm—who thinks it’s laugh out loud hilarious that the Biden administration could impact the cost of energy to us Americans—made the patently erroneous claim that President Joe Biden (D) is doing everything he can to reduce [gasoline] prices for American families.

Oil is a global market, and so Biden is helpless alone?

High school economics: increase the supply of something relative to demand for it, and prices for that something come down. Conversely, reducing supply relative to demand drives up the price.

Oil is a global market, and until January 2021, not only was the US a major player in its production, we were a net exporter of oil (and of natural gas) and essentially energy independent.

However, acting on his campaign promise to eliminate the oil and natural gas industries, Biden canceled a major oil pipeline project that would have fed refineries producing (among other things) gasoline, imposed regulations that made it difficult to build other pipelines, stopped issuing oil and gas leases on Federal lands and waters, outright canceled leases in Alaska and the Gulf of Mexico, is sitting on thousands of permits necessary to act on remaining leases, and generally inhibited our ability to produce oil and natural gas.

The Biden administration policies also (deliberately, I say) make oil and natural gas and gasoline companies reluctant to build or even to reopen additional refineries, much less restart or drill new oil and natural gas wells so those potential refineries would have something to refine.

The Biden-Granholm reduction in the supply of American oil—and so their reduction in the global supply of oil—is what’s responsible for today’s high gasoline prices.

Biden alone can, indeed, impact the cost of energy to us Americans. He’s already done it negatively. He could just as easily (or maybe not—there’s a serious trust problem now) impact the cost positively by getting his administration out of the way of the American energy industry.

And that’s just for starters.

Both Biden and Granholm know this full well; they know that Biden absolutely is not doing everything he can to reduce prices for American families. Not for gasoline, not for energy generally, and not for any of the inflationary forces in our economy.