Attaining energy independence is possibly the most critical issue facing the United States and yet many would prefer to bash some of the more promising methods for reducing the need for foreign oil.
Expanded use of nuclear power, ethanol and biofuels are all facing criticism from those who would like to maintain the status quo of dependence on oil or prefer unrealistic strategies such as reliance upon solar and wind power to meet our energy needs. Increased use of corn for ethanol is being blamed for higher food prices, but as Grain Net http://www.grainnet.com/ points out the primary cause of our larger grocery bills is rising energy costs.
Ethanol critics and many in the media charge that the rising price of corn due to growing ethanol demand is the major culprit for moderately rising consumer food prices.
Conspicuously absent from the discussion is the chief reason for increasing food costs: escalating energy costs.
According to a new analysis of food, energy and corn prices conducted by John Urbanchuk of LECG, LLC, "rising energy prices had a more significant impact on food prices than did corn."
In fact, rising energy prices have twice the impact on the Consumer Price Index (CPI) for food than does the price of corn, according to the report.
"Energy costs have a much greater impact on consumer food costs as they impact every single food product on the shelf," said Urbanchuk.
"Energy is required to produce, process, package and ship each food item.
"Conversely, corn prices impact just a small segment of the food market as not all products rely on corn for production.
"While it may be more sensational to lay the blame for rising food costs on corn prices, the facts don't support that conclusion.
"By a factor of two-to-one, energy prices are the chief factor determining what American families pay at the grocery store."
According to the study, "Increasing petroleum prices have about twice the impact on consumer food prices as equivalent increases in corn prices.
A 33 percent increase in crude oil prices - the equivalent of $1.00 per gallon over current levels of retail gasoline prices - would increase retail food prices measured by the CPI for food by 0.6 to 0.9 percent.
An equivalent increase in corn prices - about $1.00 per bushel over current levels - would increase consumer food prices only 0.3 percent."
The report goes on to find, "Corn and energy prices both affect consumer food prices.
"However, since increases in corn prices are limited to a relatively small portion of the overall CPI for food, an increase in corn prices resulting from higher ethanol demand or a supply disruption such as a major drought is expected to have about half the impact of the same percentage increase in petroleum and energy prices."
"Critics of ethanol, including those in the animal feeding and oil industries, are engaging in baseless scare tactics to convince Americans that ethanol production will irreversibly increase their grocery bills," said Renewable Fuels Association President Bob Dinneen.
"While it is true increased ethanol production is creating a real market-driven price for corn, this report clearly presents the undeniable facts:
. Energy prices, not ethanol, are responsible for much of the increase in the price of food.
.Our industry is rapidly developing next generation cellulosic ethanol technology that will allow us to meet the growing demand for renewable fuels from wood chips, switch grass and other materials in addition to corn.
. Ultimately, the market will adjust and all those in the food, fuel and fiber industry will be able to prosper."
Much of the debate has been centered on the notion that the U.S. will not be able to produce enough corn to satisfy all markets, creating shortages and intensifying competition that will continuously drive the price of corn higher.
This claim misses some key facts.
Advancements in seed, farming and ethanol technologies are allowing American farmers to continue feeding the world while helping to fuel our nation.
"There is no conflict between food and fuel-we can produce both," said Ken McCauley, president of the National Corn Growers Association.
"Demand for corn is at unprecedented levels, and we fully expect unprecedented levels of supply as well.
"This spring U.S. corn growers planted the largest crop this country has seen since the 1940s," McCauley continued. "Given normal weather conditions this summer, we'll produce the largest corn crop in history, and that will allow us to readily satisfy demand for livestock feed, human food processing,exports and fuel ethanol."
For more information, call 202-289-3835
Complete text of the report
* KEYSTONE CENTER STUDY BACKS NUCLEAR ENERGY
A new report released by The Keystone Center suggests the safety of nuclear power and that concerns about security and disposal of waste can be effectively addressed. The following is a quote for a summary provided by the Nuclear Energy Institute http://www.nei.org/
The fact-finding group was comprised of 29 individuals, including representatives from environmental groups, state regulators, electric utility industry and consumer advocates. The group was brought together by The Keystone Center, a non-profit organization that facilitates cross-sector dialogues on pressing environment, energy and public health issues.
The group broadly agreed on issues detailed in the report that included:
Safety: The participants reviewed many factors, including improvements in plant equipment and human performance, organizational and risk insights gained through experience, the implications of aging materials and components, and institutional changes in safety oversight. They found that “on balance, commercial nuclear power plants in the U.S. are safer today,” that “increased centralization among utilities and plant operators has improved the ‘safety culture’ at nuclear power plants,” and that new reactors are likely to be advanced light-water reactors, “incorporating features that improve both safety and security.”
Climate Change: A number of different approaches have been debated or proposed, including an economy-wide cap and trade program for greenhouse (GHG) emissions, a sector-specific cap and trade approach and a carbon tax. Each confers different economic advantages to nuclear power in comparison to other electricity sources. The specific provisions of U.S. climate policy will affect exactly how much of an advantage nuclear power receives. Most importantly, the more stringent the policy (the greater the reductions required or the higher the tax), the greater the relative advantage bestowed on low-GHG generation sources like nuclear energy.
Used Nuclear Fuel Management: The group also broadly agreed on issues surrounding the ultimate disposal of used nuclear fuel. They agreed that:
· Ultimate disposal of the byproducts from nuclear fuel should take place in a deep underground geologic repository;
· desirable geologic repository characteristics are well understood; and
· Suitable geological environments for disposal exist throughout the world, including locations in the United States.
Furthermore, the group voiced its belief that until the federal government’s geologic repository is licensed for operation, older used nuclear fuel “can be stored safely and securely” on nuclear plant sites in either spent fuel pools or steel and concrete containers for extended periods of time. They also agreed that centralized interim storage is a reasonable alternative for managing used fuel from decommissioned plant sites and “could become cost-effective for operating reactors in the future.”
Recognizing that used fuel must be transported from the plant sites to centralized interim storage facilities and/or a geologic repository, the fact-finding group looked at the safety and security of used fuel transportation and found: “There is wide agreement among the group participants that transport of spent fuel and other high-level radioactive waste is highly regulated, and that it has been safely shipped in the past.” The group also noted that although transport security requires continued vigilance, “security requirements during transport have been enhanced in response to 9/11.”
Expanded use of nuclear power, ethanol and biofuels are all facing criticism from those who would like to maintain the status quo of dependence on oil or prefer unrealistic strategies such as reliance upon solar and wind power to meet our energy needs. Increased use of corn for ethanol is being blamed for higher food prices, but as Grain Net http://www.grainnet.com/ points out the primary cause of our larger grocery bills is rising energy costs.
Ethanol critics and many in the media charge that the rising price of corn due to growing ethanol demand is the major culprit for moderately rising consumer food prices.
Conspicuously absent from the discussion is the chief reason for increasing food costs: escalating energy costs.
According to a new analysis of food, energy and corn prices conducted by John Urbanchuk of LECG, LLC, "rising energy prices had a more significant impact on food prices than did corn."
In fact, rising energy prices have twice the impact on the Consumer Price Index (CPI) for food than does the price of corn, according to the report.
"Energy costs have a much greater impact on consumer food costs as they impact every single food product on the shelf," said Urbanchuk.
"Energy is required to produce, process, package and ship each food item.
"Conversely, corn prices impact just a small segment of the food market as not all products rely on corn for production.
"While it may be more sensational to lay the blame for rising food costs on corn prices, the facts don't support that conclusion.
"By a factor of two-to-one, energy prices are the chief factor determining what American families pay at the grocery store."
According to the study, "Increasing petroleum prices have about twice the impact on consumer food prices as equivalent increases in corn prices.
A 33 percent increase in crude oil prices - the equivalent of $1.00 per gallon over current levels of retail gasoline prices - would increase retail food prices measured by the CPI for food by 0.6 to 0.9 percent.
An equivalent increase in corn prices - about $1.00 per bushel over current levels - would increase consumer food prices only 0.3 percent."
The report goes on to find, "Corn and energy prices both affect consumer food prices.
"However, since increases in corn prices are limited to a relatively small portion of the overall CPI for food, an increase in corn prices resulting from higher ethanol demand or a supply disruption such as a major drought is expected to have about half the impact of the same percentage increase in petroleum and energy prices."
"Critics of ethanol, including those in the animal feeding and oil industries, are engaging in baseless scare tactics to convince Americans that ethanol production will irreversibly increase their grocery bills," said Renewable Fuels Association President Bob Dinneen.
"While it is true increased ethanol production is creating a real market-driven price for corn, this report clearly presents the undeniable facts:
. Energy prices, not ethanol, are responsible for much of the increase in the price of food.
.Our industry is rapidly developing next generation cellulosic ethanol technology that will allow us to meet the growing demand for renewable fuels from wood chips, switch grass and other materials in addition to corn.
. Ultimately, the market will adjust and all those in the food, fuel and fiber industry will be able to prosper."
Much of the debate has been centered on the notion that the U.S. will not be able to produce enough corn to satisfy all markets, creating shortages and intensifying competition that will continuously drive the price of corn higher.
This claim misses some key facts.
Advancements in seed, farming and ethanol technologies are allowing American farmers to continue feeding the world while helping to fuel our nation.
"There is no conflict between food and fuel-we can produce both," said Ken McCauley, president of the National Corn Growers Association.
"Demand for corn is at unprecedented levels, and we fully expect unprecedented levels of supply as well.
"This spring U.S. corn growers planted the largest crop this country has seen since the 1940s," McCauley continued. "Given normal weather conditions this summer, we'll produce the largest corn crop in history, and that will allow us to readily satisfy demand for livestock feed, human food processing,exports and fuel ethanol."
For more information, call 202-289-3835
Complete text of the report
* KEYSTONE CENTER STUDY BACKS NUCLEAR ENERGY
A new report released by The Keystone Center suggests the safety of nuclear power and that concerns about security and disposal of waste can be effectively addressed. The following is a quote for a summary provided by the Nuclear Energy Institute http://www.nei.org/
The fact-finding group was comprised of 29 individuals, including representatives from environmental groups, state regulators, electric utility industry and consumer advocates. The group was brought together by The Keystone Center, a non-profit organization that facilitates cross-sector dialogues on pressing environment, energy and public health issues.
The group broadly agreed on issues detailed in the report that included:
Safety: The participants reviewed many factors, including improvements in plant equipment and human performance, organizational and risk insights gained through experience, the implications of aging materials and components, and institutional changes in safety oversight. They found that “on balance, commercial nuclear power plants in the U.S. are safer today,” that “increased centralization among utilities and plant operators has improved the ‘safety culture’ at nuclear power plants,” and that new reactors are likely to be advanced light-water reactors, “incorporating features that improve both safety and security.”
Climate Change: A number of different approaches have been debated or proposed, including an economy-wide cap and trade program for greenhouse (GHG) emissions, a sector-specific cap and trade approach and a carbon tax. Each confers different economic advantages to nuclear power in comparison to other electricity sources. The specific provisions of U.S. climate policy will affect exactly how much of an advantage nuclear power receives. Most importantly, the more stringent the policy (the greater the reductions required or the higher the tax), the greater the relative advantage bestowed on low-GHG generation sources like nuclear energy.
Used Nuclear Fuel Management: The group also broadly agreed on issues surrounding the ultimate disposal of used nuclear fuel. They agreed that:
· Ultimate disposal of the byproducts from nuclear fuel should take place in a deep underground geologic repository;
· desirable geologic repository characteristics are well understood; and
· Suitable geological environments for disposal exist throughout the world, including locations in the United States.
Furthermore, the group voiced its belief that until the federal government’s geologic repository is licensed for operation, older used nuclear fuel “can be stored safely and securely” on nuclear plant sites in either spent fuel pools or steel and concrete containers for extended periods of time. They also agreed that centralized interim storage is a reasonable alternative for managing used fuel from decommissioned plant sites and “could become cost-effective for operating reactors in the future.”
Recognizing that used fuel must be transported from the plant sites to centralized interim storage facilities and/or a geologic repository, the fact-finding group looked at the safety and security of used fuel transportation and found: “There is wide agreement among the group participants that transport of spent fuel and other high-level radioactive waste is highly regulated, and that it has been safely shipped in the past.” The group also noted that although transport security requires continued vigilance, “security requirements during transport have been enhanced in response to 9/11.”
2 comments:
Simply stated - Corn based Ethanol may not be the best answer -
http://ethanolhoax.wordpress.com
Moveon.org declares war on blue dogs.
http://www.newshounds.us/2007/08/09/harold_ford_jr_joins_criticism_of_yearly_kos.php
Post a Comment