Robert Bryce
Fellow
Institute for Energy Research
Houston, Tex.
Edited by Kenneth Korane
Their
rhetoric begs lawmakers to create an artificial market for ethanol and
condemns anyone who speaks about its shortcomings as part of a “coordinated
offensive of mistruths.” These statements undermine the effort to
have a serious debate about the right way to diversify our energy sources
and increase America’s energy security.
Despite accusations of an insidious campaign by the fossil-fuels industry
against biofuels, there are a myriad of legitimate concerns about ethanol.
These include, but are not limited to, ethanol’s effect on food prices, its
huge water demands, and the ability to replace substantial amounts of oil.
The U.S. Energy Information Administration believes the practical
limit for domestic ethanol production is about 13.8 billion gallons/year by
2030, or about 3% of America’s current oil consumption on an oil-equivalent
basis. That’s hardly enough to provide “energy security.” Then there’s
the promise of cellulosic ethanol as the solution to all our problems. For
years, ethanol boosters have been claiming they will soon be producing
vast quantities of ethanol from sources such as wood chips, corn stover,
and switch grass. But commercially viable cellulosic ethanol is akin to the
tooth fairy: an entity that many believe in, but no one ever actually sees.
Among the doubters: the Dept. of Agriculture, which recently reported
that while cellulose-based fuels hold “some longer-term promise,” much
research is needed to make the technology commercially economical. In
short, there’s no reason to expect it to be a practical reality anytime soon.
What about greenhouse gases? Virtually all studies show that greenhouse
gases associated with ethanol and gasoline are about the same once
the entire life cycle of the two fuels are compared. Further, as more land
is harnessed for corn production, less fertile soils will be brought into
production, requiring more energy-intensive farming, primarily through
increased use of fertilizers and irrigation. By reopening previously dormant
land, we may be unwittingly emitting tons of carbon dioxide with
simple land-use changes.
The Institute for Energy Research supports energy diversity, tapping
into the most efficient traditional, alternative, and renewable sources
capable of sustaining themselves in a free market. Propping up inefficient
producers with endless subsidies and mandating production of biofuels
will not increase our energy security, and will likely produce a host of
negative unintended consequences.
These are legitimate concerns that require serious thought before
Congress mandates the use of billions of gallons of renewable fuels. The
ethanol industry has been getting supersized subsidies for more than
two decades. We should be looking to innovators and entrepreneurs to
develop the next great technological breakthroughs in energy not to
lobbyists seeking more handouts in Washington.
The Institute for Energy Research (instituteforenergyresearch.org) conducts
research and evaluates public policies in the oil, gas, coal, and electricity
markets.