And So I Go: Yesterday, Today and Tomorrow

Lame-Duck Bailouts for Ethanol and Wind?

Posted on: December 13, 2010

Lame-Duck Bailouts for Ethanol and Wind? – Robert Bryce – National Review Online.

Ethanol and now Wind  as alternative sources of energy are with us to stay and stay and stay regardless of their cost and usefulness.  For example it takes  1 and 1/2 gallons of oil to produce 1 gallon of ethanol.  But Hey, who is counting the cost for God’s sake?  This is a matter of pay offs to farmers in corn states for electing their current representatives and Senators.

The same madness applies to wind power.  The subsidies from the tax payers are greater than the return in the value of the power achieved from wind power.  But the government is on this global warming kick that has been proven to be a hoax (even Al Gore finally admitted that fact!) and alternative sources of power are going to get the money regardless of the stupidity involved.   Below are just some excerpts  from this article or you may want to read the entire article.  BB

Ethanol is the Frankenfuel of the energy business, a subsidy-devouring monster that cannot be killed, no matter how great the political opposition. Farm-state senators have apparently succeeded in adding an extension of the ethanol tax credit, which is scheduled to expire at the end of the year, to the tax bill now working its way through Congress.

While that news is disheartening enough, the wind-energy business — the electricity sector’s equivalent of the ethanol scam — may also be winning in its effort to garner more federal subsidies. It is pushing lame-duck legislators to extend a part of the stimulus package known as the Section 1603 tax credit, which gives cash directly to wind-project developers. But what the wind boosters really need to keep their struggling business afloat is a mandate requiring the production of renewable electricity — at least 15 percent by 2020. And some Democratic senators are pushing a bill that would do just that.

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the ethanol producers, as usual, can’t get enough of your money, and they are working hard to assure that the fat subsidies (which now total about $7 billion per year) keep flowing. Last month, their main lobby groups — the Renewable Fuels Association, Growth Energy, and the American Coalition for Ethanol — sent a letter to congressional leaders telling them that ethanol has been “uniquely successful in reducing our dependence on foreign, imported oil.” They urged Congress to pass legislation extending the tax credit before the end of the year.

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Ethanol has done nothing to cut oil imports. Between 1999 and 2009, U.S. ethanol production increased sevenfold, to more than 700,000 barrels per day. And yet, over that same time span, U.S. oil imports increased by more than 800,000 barrels per day.

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The market is saying that it doesn’t want the wind industry’s product. The reason: Even with the current subsidies for wind projects, natural-gas-fired generation remains a cheaper, more reliable option. That’s remarkable, given that the effective subsidy for wind-generated electricity, the $0.022 per kilowatt-hour production tax credit, amounts to $6.44 per million BTUs. By comparison, natural gas now sells on the spot market at Henry Hub, a major trading location, for less than $5 per million BTUs.

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Cheap natural gas may persist for years to come. Last month, the International Energy Agency’s chief economist, Fatih Birol, said that the world is oversupplied and he predicted that “the gas glut will be with us ten more years.” The abundance of natural gas, which is largely due to the gas industry’s newfound prowess at unlocking galaxies of methane from shale beds, has some wind-industry insiders predicting that new U.S. wind-generation installations will fall again, by as much as 50 percent, in 2011.

Unable to compete in the free market, the wind industry’s only near-term hope is an ethanol-style mandate. And if given that mandate, perpetual ethanol-style subsidies will surely ensue. Congress, please, just say no.

 

3 Responses to "Lame-Duck Bailouts for Ethanol and Wind?"

WHAT, they didn’t listen to the Left Rev Al when he said Ethnol was not what it was made out to be? Or maybe they did and decided to award failure as they always do.

$80 billion of the Stimulus money was used for the Greening of America. They claim to have “created” 250,500 jobs in the Green industry with this money. The Left simply believe what they want to believe and never ever let facts get in their way of throwing good money after bad. BB

America is the biggest producer of Corn in the world. The USA has it’s own stockpile.
The Corn traded on the Commodities Exchange is used for feed and other products. For the last 4 years Corporations like Exxon and other oil companies and grain companies, are the ones that have built the Ethanol plants. The oil companies will make money no matter what you put in your car’s gas tank. These Ethanol plants have made deals with our farmers for their corn harvest to be used to make an alternative fuel; Ethanol. So, less and less will be going for feed for cattle and hogs, in the Meat industry. The Government is not only telling us to not only eat a vegetarian diet, but it is imposing it’s authority over the private sector by reducing the demand for beef and pork in our country, and reducing the amount of beef raised for exports to countries like Japan and China, to name a few.

If the cattle ranchers don’t have corn for feed they can’t raise enough cattle to export, therefore decreasing their bottom-line. The same goes for the farmers who raise hogs. So, the pressure to reduce meat consumption among Americans and to change our eating habits to a vegetarian diet is to the advantage of the oil and grain companies and to the energy industry. Another way to look at it is that they are taking the food out of our mouths to fulfill their Energy agenda. Ethanol will only supply 11-13% of America’s alternative fuel needs. Using corn to make Ethanol is more expensive than using let’s say Sugar, yet the Government is willing to go the Corn route.

Americans really need to learn how to connect the dots. There is so much more going on out there than they even realize. Yet, too many are not taking the time to investigate these things for themselves. How Americans live their lives, what they eat, and what doctor they go to is up to them, but little by little they are giving that right, that power, to the Government, when they allow it to tell them how and what to eat, and what kind of medical procedures they can and can not have. No one is connecting the dots. Are you?

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