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How to subscribeEthanol Groups React to Record Oil Price
Crude oil prices broke the $100 a barrel barrier for the first time today on rising concerns over violence in Nigeria.
Light, sweet crude for January delivery rose $4.02 to $100 a barrel on the New York Mercantile Exchange, before slipping back to $99.48, but now that the psychological ceiling has been breached analysts expect it is only a matter of time before triple digits are the norm.
Renewable Fuels Association President Bob Dinneen issued the following statement on the unhappy milestone of the new year:
“Oil’s unprecedented rise to $100 a barrel underscores our economic and geopolitical vulnerability to depleting oil reserves. While developing new oil reserves is proving more difficult and expensive, the American ethanol industry is rapidly developing new cost-effective technologies that will greatly reduce our nation’s reliance on imported oil from unstable regions often hostile to the United States.
“Developing new petroleum sources requires more energy-intensive and environmentally-questionable practices, such as the extraction of oil from the tar sands in Canada. Conversely, next generation ethanol technologies will improve ethanol’s already green footprint and allow for greater ethanol production from resources ranging from corn to switchgrass to wood waste and garbage.
“The continuing volatility of world oil and energy markets highlights the importance of the energy legislation Congress passed late last year. By pairing higher fuel economy standards with the increased use of renewable fuels from non-traditional feedstocks, our country now has a policy and plan in place to begin mitigating the impact of volatile and ever-increasing world oil prices.
“The energy paradigm in this country and around the world is beginning to change. Volatile oil prices and dwindling supplies further emphasize the need to develop renewable alternatives. The American ethanol industry stands ready to help lead the revolution away from fossil fuels and to a more stable, sustainable energy future.â€
Other biofuels groups issued similar statements today. The Ethanol Promotion and Information Council’s Robert White said, “The American public is looking for realistic solutions to our dependence on a dwindling supply of energy of which ethanol plays an important role. Once again, the ethanol industry will rise to the challenge and continue to provide a renewable, efficient, economy boosting product for Americans. Without ethanol, the cost of our oil addiction is far too great.”
The Canadian Renewable Fuels Association says the case for biofuels has never been stronger.
“Oil at $100 makes the case for biofuels crystal clear. The price of oil is simply too high and too unreliable. We must continue to diversify our fuel supply” said Gordon Quaiattini, President of the Canadian Renewable Fuels Association. “Biofuels, such as ethanol and biodiesel, are real viable alternatives and are better for the environment, prices, and farmers.”