We see stories daily about the impact of high gasoline costs. Gas is consistenly over $3 a gallon and experts agree that it will only go up from here. We are likely to never again see consistenly the lower gas prices we experienced two years ago. We all know that fossil fuels are a exhaustible source of energy. We also know that many things use petroleum as a core ingredient from every form of plastic to many other solvents and composites. We hear that the explosive industrial growth in China and India is increasing the demand for these precious resources. All this makes sense, but really why do we have an energy crisis now?It's because of the instability of the Middle East.
Ok, I get that most of the world's oil is from the Middle East. I also get that this is an unstable part of the world. We have a war in Iraq, and an unstable situation in Iran.
But, wait a minute. 6 years ago, Iraq's oil reserves were under the control of Saddam Hussein, a brutal dictator. Iraq had been sanctioned by the United Nations to the point that very little oil was being exported. Also, the instability of the middle East has gone on for decades. Iran was controlled by unstable forces and there was general tension in the middle East between Israel and every other country; between Iran and and Iraq (remember they had a brutal war with each other); between much of the middle East and Saudia Arabia over the first gulf war, etc, etc. The middle East has been unstable since biblical times and one could argue the region is more stable now because we are controlling Iraq, and offsetting the power of Iran. The middle East is more stable now, but gas is $3.07 per gallon and was approximately $1.64 per gallon in March 2003 when we invaded Iraq. (http://zfacts.com/p/35.html)
I'ts just a case of supply and demand.
Ok, I get that we have limited sources of Oil and demand continues to increase because we use petroleum for nearly everything we make. I understand that India and China are growing increasing demand.
But, wait a minute. We started a war in Iraq to "stabilize the middle East" and "protect our national interest". Iraq has the third largest oil reserves in the world with over 115 billion barrels according to the Oil and Gas Journal, and it is controlled by the U.S. According to Wikipedia (http://en.wikipedia.org/wiki/Oil_reserves#Iraq), "in 2006 Iraq's oil production averaged 2.0 million barrels per day (bbl/d), down from around 2.6 million bbl/d of production prior to the US invasion in 2003".
Renewable Energy Sources are Not Feasible or Economical.
So we are told that there has been no feasible renewable energy source to reduce our dependence on oil. Wind power can only be used in certain locations where thiere is consistently high wind. Solar energy cannot be used in most of the country and requires very large solar "farms" to achieve any significant energy production.
But wait a minute. We have the 5th largest supply of Natural Gas in the world. It also burns cleaner than oil based fuels. Why can't we just convert more of our power plants to Natural Gas? What about Ethanol? It burns clean and is a renewable source of energy.
We have no feasible alternatives to fossil fuels for transportation.
Ok I get that a significant portion of our of our oil use if for transportation in the U.S. (cars, buses, planes and trains). I also understand that new automotive technology like hybrids and fuel cells are emerging and not feasible for mass production.
But wait a minute. Many of the cars made by American manufacturers are Flexible Fuel Vehicles (FFV) and will run on E85 today! E85 is a blend that is 85% Ethanol, and burns cleaner than gasoline and is better for our environment. It is also is 100% renewable in that we can produce it ourselves from corn and other organic home grown sources. Brazil runs exclusively on E85 and is largely energy independent. It is also widely used in Sweden. Producing Ethanol from home grown sources would also mean the billions of dollars we spend on oil would go to U.S. farmers instead of the Middle East. Critics say Ethanol is not economically feasible, but the facts indicate it can be produced at prices only 5-10% higher than gasoline which could easily be covered by subsidies from the government according with Wikipedia. The fact is that Ethanol is not widely used because the large oil companies forbid their gas stations from carrying it. If consumers don't have access to E85, they cannot use it.
So what is the real reason we have an Energy crisis?
Of course this is a complex subject and there are real and technical issues that impact our ability to be energy independent. However, I believe it has a lot to do with the power of the oil companies. Exxon made net profits of $40.61 Billion in 2007 while we had this energy crisis. The oil companies were the largest contributors to George W. Bush's campaign, and the oil companies are blocking the distribution of Ethanol by making is a violation of their franchise agreements for gas stations to carry E85.
I will close this posting with the following questions:
1. If Brazil can convert exclusively to Ethanol, why can't we?
2. If we took the money we money we plan to spend in 2008 for the continued war in Iraq, how many Ethanol plants could we build?
3. How many jobs could we create in the U.S. in agriculture and Ethanol production if required a converstion to E85?
4. Why do we have the political will to require every american convert to Cable television by February of 2009, but do not have the political will to address our energy crisis with real legislative leadership?
5. Why do oil companies block the distribution of Ethanol?
6. Are the drawbacks to renewable fuel real, or embellished by those that have a vested interest in our dependence on oil?
7. Why do gas prices continue to increase when we control the world's third largest oil reserves in Iraq?
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