• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 5 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 19 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 23 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 3 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 1 hour CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 3 days Modest drop in oil price: SPRs vs US crude inventory build
  • 3 days 2019 - Attack on Saudi Oil Facilities.
  • 7 hours NordStream2
  • 3 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days Ukrainian Maidan after 8 years
  • 5 days Peak oil - demand vs production
  • 6 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
5 Trillion Reasons To Be Bullish On Tesla

5 Trillion Reasons To Be Bullish On Tesla

Tesla has established a strong…

Oil Prices Crash On New Covid Fears

Oil Prices Crash On New Covid Fears

Oil prices crashed on Friday…

The Law that Prevents Cheap Fuel for America

100 million acres of American farmland is used to grow corn, of which a third is then turned into approximately 14 billion gallons of cellulosic ethanol. Yes it helps to slightly reduce the carbon emissions of US exhausts, but as a huge cost.

Steven Sterin is the president of Celanese, a chemicals company from Dallas, and claims that his company has “the best gas-to-liquids and coal-to-liquids technology in the world.” Celanese makes its ethanol by tearing apart and recombining the hydrocarbons found in plentiful natural gas or coal.

If it works it could be revolutionary for the fuel industry. That “if” does not depend upon science or technology, but politics.

In 2007 Washington created the Renewable Fuel Standard law which mandated petrol refineries to blend a certain amount of renewable ethanol with the petroleum. This prevents Celanese and other producers of fossil fuel based ethanol from working in the US ethanol market. Currently the RFS requires that 15 billion gallons are blended each year, but that will increase to 36 billion gallons by 2020.

In 2006 George Bush declared that cellulosic ethanol made from wood chips would be “practical and competitive within six years,” but that hasn’t happened, despite himself and Obama investing $1.5 billion into grants and loan guarantees. In fact most of the companies benefitting from the government investment, such as Range Fuels, Cello Energy and E3 BioFuels, went bankrupt, and the survivors only produce about 6 million gallons per year.

The decision to allow fossil fuel based ethanol to contribute to the RFS targets is a difficult conflict for the corn dominated ethanol lobby. They don’t want the competition from ethanol produced by cheap gas, but they do want to help cut national oil imports.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News