Report, Biofuels Ethanol will not Replace Oil.

Why Biofuels Burned Up Your Dollars

Farm state politicians, entrepreneurs and venture capitalists have sold biofuels to rest of us as a way to revive rural America, attack the problem of global warming and reduce our dependence on foreign oil.

In response, investors and taxpayers have poured many millions of dollars into corn ethanol. The returns have been skimpy.

That, at least, is the conclusion of a new report from the Worldwatch Institute called Red, White, and Green: Transforming U.S. Biofuels. The unhappy news is that we don’t seem to have learned much from our dismal experience with corn ethanol, and unless things change in Washington, we’re going to burn a lot more of it.

So far in 2009, ten ethanol production plants have filed for bankruptcy.

Government support “is the only reason the industry is up and running,” McKeown says. “Otherwise it wouldn’t be profitable.” Even so, much of the industry has failed to survive the combination of rising corn
prices, declining oil prices and the credit crunch.

The United States is increasingly dependent on imported energy to meet our personal, transportation, and industrial needs. As a domestic, renewable source of energy, ethanol can reduce our dependence on foreign oil and increase the United States' ability to control its own security and economic future by increasing the availability of domestic fuel supplies

One fact is correct, the United States is increasingly dependent on imported oil. What is not true, ethanol can reduce our dependence of foreign oil. By 2030, the Energy Information Administration (EIA) projects the U.S. will import 70% of its petroleum. So what is going to replace oil? Wind or solar, not yet. We must drill off our coast and on our land.


Oil rigs of the past. Today we have fewer oil rigs.

The production facility of today has been radically streamlined and occupies far less surface area when compared to operations 25 years ago. In 1970, a 20-acre offshore oil rig could drill a mere 0.8 square miles at 10,000 feet. Today , an oil rig of just 2 acres can drill over 80 square miles - again, while spilling almost none of it.

The key word regarding today’s footprint is small.  For instance, one development opened in 2000 in Alaska’s Alpine Field produces from a pad area of 97 acres—just 0.2 percent of the 40,000-acre field.  Directional drilling, zero-waste discharge, roadless development and other innovations were used to minimize the Alpine field’s footprint on the Arctic tundra.

The U.S. oil and gas industry has integrated an environmental ethic into every aspect of business.  The industry actively collaborates with private conservation groups to protect sensitive coastal and marine habitats and wildlife.

We need energy to keep our country going.  If we don't drill now to provide for our economy, our children might have no future. Not from global warming but of no USA.

More post from Wag This Dog.
US Massive Oil Deposits could be 10x Increase to Supply.
Five Nations urge Oil Producers to Boost Output.
US House Votes to Sue OPEC for Price Fixing.


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Senator Obama Speaks Out About America's Oil Addiction. President Obama it's not an addiction, it's our life blood.

Pelosi OK's Drilling Vote, Snubs Republicans.

Democrats Start on Energy Plan - washingtonpost.com

Speaker Nancy Pelosi (Calif.) and her leadership team, emerging from a nearly two-hour
meeting with the Democratic caucus, offered a plan that marks policy reversal for Democrats. It would allow more offshore drilling in exchange for additional funding for renewable resources.

The most controversial provision, which drew fire from conservatives and liberals alike, would permit drilling 100 miles off the Atlantic coasts from Virginia to Georgia, and in the Gulf of Mexico off Florida's western coast.

The limit could be reduced to 50 miles if each state's governor and legislature endorsed the move, said Democratic aides and environmental activists briefed on the plan.

Off shore oil platform.

Now Nancy Pelosi and her leadership team, the Democrat caucus came up with their Energy plan. Hay Nancy, was there any Republicans on your leadership plan? Why did you meet with just the Democrat caucus? Now it will come up for a vote by the end of the week and your going to want Republicans to vote for it. Nancy where is the bipartisan congress that you promised when you took office?

Many of the items on her legislative wish list failed earlier this summer because Democrats brought the measures to the floor under rules reserved for noncontroversial legislation. Those rules block the minority from offering alternatives but also require a higher threshold for passage.

Senate Majority Leader Harry Reid, applauded the bipartisan "Gang of 10" for offering a compromise package in the Senate that would allow Georgia, North Carolina, South Carolina and Virginia to opt out of a federal ban on offshore oil and gas drilling, calling it a "step in the right direction." Oh I see Republicans must compromise and Democrats don't.

Let's look at Speaker Nancy Pelosi plan. We would permit drilling 100 miles off the Atlantic coasts from Virginia to Georgia. This is just four states. What about the west coast? How about Alaska? And we can drill only in the Gulf of Mexico off Florida's western coast. What about the east coast of Florida?

More offshore drilling in exchange for additional funding for renewable resources.
Is this funding from revenue from the drilling or form the tax payer, you and me.

Oil companies can only drill 100 miles out. If you would drill 100 miles south of Florida, we would be drilling in Cuba! The limit could be reduced to 50 miles, if each state's governor and legislature endorsed the move. This is Federal waters, why should the states have a voice in this? The states are not going to get a dime from this oil money. Just ask Louisiana.

Coastal states are also entitled to a share of revenues from offshore tracts. While the first three miles off Louisiana's coast belong to the state, the area beyond the three-mile zone is considered federal property. The zone between three and six miles is known as the 8(g) zone, as designated by the 1953 federal Outer Continental Shelf Lands Act.

•Louisiana has had offshore drilling since 1947. About 172 active rigs dot the Gulf of Mexico waters off the coast, producing about 79% of the oil and 72% of the natural gas that comes from drilling off the nation's coastlines.

So we been drilling off the coast of Louisiana since 1947. We have learn and advanced in off shore drilling. Google Louisiana offshore drilling and you will learn the facts. Don't let Nancy Pelosi and the Democrats hinder the growth of our country by limiting our offshore drilling.

Other post on oil drilling.
Actual Gulf of Mexico rig count is down from Last Year.
US House Votes to Sue OPEC for Price Fixing.
Gas Prices fall as Crude Oil Increases.

Technorati Tags: offshore, oil, Pelosi,

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Gas Prices fall as Crude Oil Increases

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6NQe8YC4OTYBloomberg.com: U.S.

Aug. 5 (Bloomberg) -- Crude oil fell to $118 a barrel on speculation Tropical Storm Edouard won't damage U.S. Gulf facilities and as slower U.S. economic growth limits the appeal of commodity investments.

Will Gas Come Down at the Pump?

The question you must ask is why did the price of crude oil drop? If you read the article above you will see that in the last four weeks crude oil supplies rose as if more oil was being pumped out of the ground but the article also said that fuel consumption was lower those four weeks. This proves if we increase the supply the price of oil will drop.

President Bush said in his radio address: "To reduce pressure on prices, we need to increase the supply of oil, especially oil produced here at home," It was the fourth time this week that he has called for Congress to end the drilling restrictions off the Atlantic and Pacific coasts and in the eastern Gulf of Mexico.

The Congressional Democrats don't want us to drill for more oil. They argue that the big oil companies already have large areas of federal land and offshore water where they can drill now. Now this is foolish.

Let's compare this to gold mining. If the gold miners want to look for more gold some where else and not keep on digging in the same hole, there is a reason. The gold is getting harder to get or they are slowly running out of gold. If there was gold, next to the mine on the same property, why would they want to go and mine some where else and maybe not find gold? The same with the oil companies they are in the business to produce oil.

Since our country's whole economic system is based on oil, it's almost imposable to replace it in 10 years or maybe even 50 years. You take the chance of killing our economy by reducing our oil and not first finding an abundant source of something else.

So the answer to the question: How do you get the gas prices, at the pump, to drop? Well it happened in the 1970's. Saudi Arabia, trying to gain back market share, increased production and caused downward pressure on prices, making high-cost oil production facilities less profitable or even unprofitable. The world price of oil, which had reached a peak in 1979 during the 1979 energy crisis, at more than $80 per barrel, decreased during the early 1980s to $38 per barrel.

So we must drill and we must drill now. Even though this oil will take time to reach the market, it will cause downward pressure on prices. So the price at the pump will drop.

Yes Democrats, we can drill ourselves out of this.

More on oil.
US Massive Oil Deposits Could be 10x Increase to Supply.
Five Nations Urge Oil Producers to Boost Output.

Technorati Tags: oil

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US Massive Oil Deposits Could be 10x Increase to Supply

Massive Oil Deposit Could Increase US reserves

America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation
in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.

Among Biggest Oil Finds in USA - Montana & North Dakota


The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of
horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel.

Because of past failed policies, even if we can get this oil out of the ground, where are we going to refine it? We have not built a new oil refinery since the Marathan Ashland,s Garyville, Louisiana plant, which was completed in 1976. There are plenty of reasons gas cost so much, but one of them is that the United States doesn't have enough refineries.

Now the call is for alternative energy. And the Democrats say that we don't need to drill but to conserve or use alternatives. This is not a new idea. If you lived through the 1973 oil crisis than you know we did everything to conserve energy. The energy crisis of 1973 led to greater interest in renewable energy and spurred research in solar power and wind power. You need to go to the Wikipedia 1973 oil crises site and see what we did. The truth is that the U.S. government response to the embargo was quick but of limited effectiveness.

This is one issue that sharply divides Democrats and Republicans. Virginia Senate candidate Mark R. Warner, Democrat, said " "We could drill everywhere from here to New Jersey, and it's still years away and will only add about 140 days of oil supply to this country." My question to Mark would be, " Why would the oil companies spend million of dollars for just 140 days of oil?"

His GOP opponent, James S. Gilmore III, has made drilling in the Arctic National Wildlife Refuge and off the East Coast, including Virginia, a central focus of his campaign, casting it as the only plausible solution for reducing the price of gas.

My question: Is this the beginning of the 2008 oil crises? What have we learned in the past 25 years? Not much! We have hindered the growth of our oil industry and still don't have any large scale alternatives. Democrat's solution; Blame everyone else. Republican's solution; Drill now. Which side are you on?


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Five Nations Urge Oil Producers to Boost Output.

Oil producers urged to boost output as prices soar - USATODAY.com

AOMORI, Japan (AP) — Leading energy-consuming nations urged oil producers Saturday to boost their output to counter soaring prices threatening the world economy, while they pledged to develop clean energy technologies and improve efficiency.

Democrats Vote Against Drilling for U.S. Oil - TREASON?

The five nations — the United States, China, Japan, India and South Korea — differed, however, on how urgently oil subsidies should be phased out, with Washington backing bold movement while India and China warned of political and economic instability.

These five countries consume more than half of the world's oil and they need more in order to keep their economies running. China and India subsidies the price of gas in their countries so their citizens don't know what the real price of gas is. And because these countries are subsiding oil, it's hurting their economies.

Indian Oil is running losses of $76 million a day, and will run through its line of credit of $21.4 billion by July. That's because the government has insisted that Indian Oil subsidize all the gasoline, diesel, and cooking oil it sells, so much so that prices are a third cheaper at the pump in India than they are in the U.S. Since the oil it purchases abroad is so much more expensive than what it sells at home, Indian Oil basically loses money every time it makes a sale.

India is already facing such effects. The government hiked gasoline and diesel prices, triggering protests by angry consumers who blocked rail tracks and roads and shut down businesses. China also is afraid of mass riots if they hike the price of gasoline.

First President Bush asked OPEC for more oil and now the other four nations are doing the same. Democrats don't want us to drill for more oil but we need more oil to keep our economy going. Whoever holds the oil, holds our economy in it's hand. Boxer argued that the United States could save more oil than the refuge would produce "by just getting the SUVs to have the same fuel economy as autos."

This is the thinking of the Democrats and this is their solution, which if could be done, will take ten or more years. The American people will take so much and then we also will revolt. Their were talks in 1973, during the oil embargo, to go to OPEC and taking their oil. This just might be the reason for future wars.

Technorati Tags: Oil

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US House Votes to Sue OPEC for Price Fixing.

House votes to allow suit against OPEC - Los Angeles Times

Will gas be rationed?

WASHINGTON - Congress' latest answer to rising gasoline prices: Sue OPEC.

Defying a White House veto threat, the House on Tuesday overwhelmingly approved legislation that would allow the Justice Department to pursue legal action against the Organization of the Petroleum Exporting Countries for conspiring to restrict supplies or drive up prices.

It was the second time in a week that a majority of Republicans joined Democrats to support an energy measure over the Bush administration's objection and came as the average price for a gallon of self-serve regular set more records Tuesday -$3.80 nationally and $3.976 in California, according to AAA.

The White House warned that the measure could invite retaliatory action by the oil cartel, which supplies about 6 million barrels of crude to the United States every day.

If the United States sues OPEC, who will we be suing? A bunch of middle east countries that export oil? NO. There will be two South American countries, Ecuador and Venezuela, a founder member. Four countries from Africa, and Indonesia from Asia.Out of the thirteen members only six are from the middle east and one of them is Iran.

I would like to see us sue President Hugo Chavez of Venezuela. I sure he won't retaliate against the United States. I also would like to see us sue Iran's President Mahmoud Ahmadinejad. He is urging OPEC members to from a joint bank and stop pricing oil trades in US dollars. Mahmoud Ahmadinejad says oil valued at $115 per barrel is priced too low. I am sure if we sue him, he won't retaliate against the United States. And the other eleven countries will love us as we sue them and bow at our feet.

I don't know why Congress is so upset. Just last August, 10 months ago, CNNMoney.com reported that despite oil's record high last week, forget about crude going to $100 a barrel. The government run Energy Information Administration has a $50 target price for crude by 2015. Here we go, most analysts agree with EIA assessment. "This is an inherently cyclical business," said Edward Morse, chief energy economist at Lehman Brothers, who said he could see oil prices in the $40 to $50 range by 2010. Thats only a year and a half from now. Do you believe them?

Now the United States is going to sue OPEC. Are we going to have another oil crisis of 1973? The 1973 oil crisis began on October 17, 1973 when the members of OPEC announced, as a result of the ongoing Yom Kippur War, that they would no longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt (the United States and it's allies in Western Europe and Japan.) I guess we should have sued OPEC then, because Syria and Egypt launched a military attack on Israel.

This proves OPEC doesn't need to sell us oil and we are just going to make them mad and they will produce less and really fix the price. So maybe the day that our Congress sues OPEC that will be the day that the 2008 oil crisis will begin.




Technorati Tags: OPEC Oil Congress

Actual Gulf of Mexico rig count is down from last year.

Rising crude oil prices are bolstering Gulf of Mexico drilling activity, even though a key indicator says otherwise. This week crude closed above $105 a barrel for the first time, capping a months-long stretch in which oil prices have marched steadily higher. Louisiana energy companies say the up tick in prices leaves them with more cash on hand and more of an incentive to drill. Though industry leaders say oil prices have stoked interest in Gulf drilling, the number of rigs actively working in the Gulf has actually declined in the past year. As of Friday, 60 rigs were working in the Gulf, down from 87 one year ago. "There are a number of things people have suggested" as causes for the decline, Shiels said. New regulations implemented by the U.S. Minerals Management Services after the 2005 hurricane season might have discouraged some activity in the Gulf. And the rig count tends to more closely track natural gas exploration as opposed to oil. In addition, certain rigs are leaving the Gulf of Mexico for foreign markets where they command higher rents, he said. By Kimberly Quillen. T.P. Business writer.

In one year we lost a third of our oil rigs in the Gulf of Mexico. Where did they go? Well certain rigs left for foreign markets. They left for other countries where the governments don't try and tell them how to run their businesses and try to take their profits. Hillary Clinton said she will take their profits if she is president so now the oil companies, which are now global, are moving to greener pastures.

The green people are happy. They think they are saving the earth by stopping the drilling in the U.S. What they don't understand is that they might slow it down here and hurt our economy, but it is going strong through the rest of the world. Just ask the Chinese how many Americans are over there helping them drill for oil. There are countries begging for our expertise and our rigs so they can go and drill oil for themselves. The green people will not stop them.

Just a note. Oil is what makes the world go round. If you stop the flow of oil in the U.S. you will stop the U.S. economy. If you stop the flow of blood in your body, you die.