Idaho Farm Bureau
VOICE OF IDAHO AGRICULTURE
 
Alternative Fuels Mean Economic Freedom
By Frank Priestley, President (208) 239-4292
 
Big Oil has America in a headlock and it’s high time for our government to step up and do something about it. That something is to support renewable, clean-burning alternative fuels like ethanol and biodiesel.

High-tech multicomponent harvesters are being developed to harvest the previously unusable parts of wheat straw for use as a renewable, clean biofuel

Requiring oil companies to blend even a small percentage of alternative fuels with gasoline and diesel fuel would reduce our dependence on foreign crude, generate revenue in rural America and reduce fuel prices significantly. But in the midst of record setting profits, Big Oil isn’t likely to stop gouging consumers on their own. Exxon Mobil Corporation’s profits last year exceeded $25 billion, with every expectation that 2005 profits will be even greater. For the ten largest companies that refine crude oil in the U.S. profits increased by almost 60 percent in the first quarter of this year compared to last year. Shell, BP, Conoco / Phillips, Chevron / Texaco and several others are all making the most of high fuel prices. And in response, American consumers are getting pummeled, and it’s not just at the gas pump. Nearly anything that has to be delivered costs more thanks to outrageous fuel prices.

On April 25, the average price of a gallon of gasoline in the U.S. was 42 cents more than on the same date last year. This costs the average consumer over $200 per year. Over the same time period the price of ethanol has dropped by 20 percent to around $1.20 per gallon wholesale, according to a report published by the Consumer Federation of America (CFA); “Over a Barrel – Why aren’t oil companies using ethanol to lower gasoline prices?

After the usable straw is extracted, it is sent to a plant that breaks it down into sugars. These sugars are then sent to a biorefinery where they are used to produce ethanol fuel as well as useful chemicals.

U.S. production of ethanol is up significantly and continues to increase. Production is expected to reach four billion gallons this year. However, ethanol producers are being forced to look for offshore markets because of Big Oil’s greed and Congress’s indolence. The CFA report describes it as follows: “This creates a situation of lower-priced ethanol leaving the country while higher-priced oil enters – hardly an indication of rational economic behavior.”

If you are tired of being bilked by Big Oil, there are several things you can do. First, contact your congressmen and tell them to support an energy package that includes a renewable fuels standard and tax incentives that support alternative fuel development. After that tune up your vehicles, inflate your tires and talk to the people who sell fuel. Write letters to the editor and get others thinking about this problem. Help send forth the message that while we understand businesses need to make a profit, continuing to ignore the common sense and economic benefits of alternative fuels is gouging American families.