Post by warriorwitch on Apr 25, 2006 14:07:59 GMT
Overview
The United States is faced with a series of public policy challenges that can be favorably addressed with the accelerated development of a domestic transportation fuels industry with a clear and defined role for biomass and other renewable technologies.
The policy challenges include:
Deteriorating environmental quality caused by increased emissions from the combustion of fossil fuels, including such pollutants as air toxics, greenhouse gases, carbon monoxide and ozone-forming volatile organic compounds. Crude Oil Imports
Source: U.S Commmerce Department
Forty-five billion dollars in health care related costs from air pollution.
Crude oil imports to the U.S. which now exceed 50 percent of the U.S. consumption of oil. The U.S. Department of Energy projects crude oil imports to reach nearly 70 percent in the next decade.
A corresponding decrease in U.S. crude oil production and a decline in proven reserves of domestic oil and natural gas.
Surplus U.S. agricultural production and shrinking commodity exports markets.
Continuing $100+ billion per year trade deficit, half of which is attributed to oil imports.
Losing between 1-2.5 million U.S. jobs as a result of crude oil imports.
Growing industrial and consumer waste with limited disposal options.
Declining rural economies and rising social costs associated with this trend.
For 100 years, the hydrocarbon-based economy has helped make the United States the premier industrialized nation in the world. The nation's investment in the hydrocarbon transportation infrastructure, including over $100 billion in oil and gas subsidies, helped create the world's most dynamic and fastest growing economy in this century. However, the rapid economic growth and resulting depletion of natural resources has pushed the nation's nearly single-minded hydrocarbon-based economic investment to a point of diminishing returns. Since the nation's first oil crisis in 1973, the United States has spent more than $1.3 trillion on crude oil imports. Since the end of the Vietnam War, the U.S. has also been involved in four military conflicts in which petroleum resources were at issue.
Trade Deficit 1996
Source: U.S. Commerce Department
Nearly 70 percent of the oil imported into the United States is consumed in the transportation sector. The transportation sector is also responsible for over half the nation's air pollution. To date, the world's automobile manufacturing industry, primarily U.S. manufacturers, have shouldered most of the blame and investment responsibility for simultaneously resolving the fuel consumption and motor fuel related emissions dilemma.
Recognizing the vital importance of liquid fuels for transportation, energy diversity, domestic production, economic stimulation and environmental enhancement, the U.S. Congress passed a series of energy investment incentives between 1978 and 1980. These legislative actions created investment opportunities for the production of alcohol from agricultural products and biomass. These initiatives were part of a national goal that ten percent of the nation's motor fuel would contain ethanol derived from biomass by 1990.
Overview
Since the adoption of the original initiatives and supplemental initiatives in the Reagan, Bush and Clinton Administrations, private industry has invested over $2 billion in renewable alcohol fuel production. The United States currently has the capacity to produce 1.65 billion gallons of ethanol per year. While this 15 year growth pattern is considered generally successful, it is very modest from what Congress originally envisioned. Renewable ethanol still represents only 1.2 percent of the nation's annual demand of 115 billion gallons of gasoline.
Passage of the Clean Air Act Amendments of 1990 and the Energy Policy Act of 1992 reinforced the nation's commitment to energy security, economic development and ensured the pursuit of an environmental equilibrium. As the nation plans for economic growth and domestic investment, the motor fuel market remains one of the most obvious sectors that can absorb the necessary investment, sustain long-term growth, while simultaneously provide numerous and diverse benefits to nearly every facet of the economy.
The United States is faced with a series of public policy challenges that can be favorably addressed with the accelerated development of a domestic transportation fuels industry with a clear and defined role for biomass and other renewable technologies.
The policy challenges include:
Deteriorating environmental quality caused by increased emissions from the combustion of fossil fuels, including such pollutants as air toxics, greenhouse gases, carbon monoxide and ozone-forming volatile organic compounds. Crude Oil Imports
Source: U.S Commmerce Department
Forty-five billion dollars in health care related costs from air pollution.
Crude oil imports to the U.S. which now exceed 50 percent of the U.S. consumption of oil. The U.S. Department of Energy projects crude oil imports to reach nearly 70 percent in the next decade.
A corresponding decrease in U.S. crude oil production and a decline in proven reserves of domestic oil and natural gas.
Surplus U.S. agricultural production and shrinking commodity exports markets.
Continuing $100+ billion per year trade deficit, half of which is attributed to oil imports.
Losing between 1-2.5 million U.S. jobs as a result of crude oil imports.
Growing industrial and consumer waste with limited disposal options.
Declining rural economies and rising social costs associated with this trend.
For 100 years, the hydrocarbon-based economy has helped make the United States the premier industrialized nation in the world. The nation's investment in the hydrocarbon transportation infrastructure, including over $100 billion in oil and gas subsidies, helped create the world's most dynamic and fastest growing economy in this century. However, the rapid economic growth and resulting depletion of natural resources has pushed the nation's nearly single-minded hydrocarbon-based economic investment to a point of diminishing returns. Since the nation's first oil crisis in 1973, the United States has spent more than $1.3 trillion on crude oil imports. Since the end of the Vietnam War, the U.S. has also been involved in four military conflicts in which petroleum resources were at issue.
Trade Deficit 1996
Source: U.S. Commerce Department
Nearly 70 percent of the oil imported into the United States is consumed in the transportation sector. The transportation sector is also responsible for over half the nation's air pollution. To date, the world's automobile manufacturing industry, primarily U.S. manufacturers, have shouldered most of the blame and investment responsibility for simultaneously resolving the fuel consumption and motor fuel related emissions dilemma.
Recognizing the vital importance of liquid fuels for transportation, energy diversity, domestic production, economic stimulation and environmental enhancement, the U.S. Congress passed a series of energy investment incentives between 1978 and 1980. These legislative actions created investment opportunities for the production of alcohol from agricultural products and biomass. These initiatives were part of a national goal that ten percent of the nation's motor fuel would contain ethanol derived from biomass by 1990.
Overview
Since the adoption of the original initiatives and supplemental initiatives in the Reagan, Bush and Clinton Administrations, private industry has invested over $2 billion in renewable alcohol fuel production. The United States currently has the capacity to produce 1.65 billion gallons of ethanol per year. While this 15 year growth pattern is considered generally successful, it is very modest from what Congress originally envisioned. Renewable ethanol still represents only 1.2 percent of the nation's annual demand of 115 billion gallons of gasoline.
Passage of the Clean Air Act Amendments of 1990 and the Energy Policy Act of 1992 reinforced the nation's commitment to energy security, economic development and ensured the pursuit of an environmental equilibrium. As the nation plans for economic growth and domestic investment, the motor fuel market remains one of the most obvious sectors that can absorb the necessary investment, sustain long-term growth, while simultaneously provide numerous and diverse benefits to nearly every facet of the economy.