A flurry of bearish news…
Oil prices tanked on Wednesday…
The US military is one of the most important developers of new technologies leading them to a point where they can be released onto the market for public and private use. Currently the Department of Defense, led by the Navy, is attempting to reduce its dependence on oil by as much as 50% by 2020, by producing US-made biofuels.
According to a report by Environmental Entrepreneurs (E2), plans to use biofuels in ships, planes, and other military vehicles is predicted to generate about $10 billion for the economy, and create 14,000 jobs. Another added benefit of the DoD’s push for biofuels is that it would accelerate the adoption of biofuels by commercial airlines, vehicles fleets, and general public consumption.
Now however, due to a new act that Congress is expected to pass in the next few weeks, all of those benefits may be wasted, and never reach fruition. The National Defense Authorisation Act (NDAA) would forbid the military from expanding its use of biofuels.
Nicole Lederer, the co-founder of E2, despaired that, “the military often leads major economic transitions in our country. Yet right now in Washington, some shortsighted lawmakers are poised to block a potentially major transformation of our national energy supply - and also hold back the significant economic growth and job gains that would come with it.”
Russ Teal, founder of the biorefinery builder Biodico, warned that, “the military is the biggest driver of the biofuels industry right now. If Congress stops the military from doing what the military knows is best, Congress also could threaten the growth of the Made-in-America biofuels industry.”
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com