Wed, 05/07/2008 - 00:51
In my last (and first, for that matter) post, I tried to link to a recent article by Thomas Friedman entitled Dumb as We Wanna Be. It appears that the NYT wants one to register in order to read the scathing review of our current energy policy, and so many of you may have been stymied by the link. In a nutshell, Mr. Friedman lays out a case that, to put it euphemistically, suggests we should be approaching our energy policy differently. It's about an 800 word opinion piece, so if you don't have the time, you'll get the gist of his opinion from one of his quotes. In describing our policy, he succinctly summarizes it as follows, "Maximize demand, minimize supply and get the rest [of our oil] from the people who hate us the most."
So, this is not meant to be a political blog; it's a
BIODIESEL blog. But we are at a time and place where energy is a major issue, and, therefore, given it's an election year, that means political people are on and in the news opining on the problem and occasionally offering "solutions". Take the gas tax discussion. For me this "solution" highlights several energy issues and problems. First of all, it's poorly thought out and won't work (
McCain/Clinton Gas Tax Holiday Slammed) This seems to apply to quite a bit of recent and proposed energy policy coming out of Washington, which doesn't bode well for intelligent near-term regulatory stimuli.
If you think through the numbers it's less effective than spitting into a tornado. The $0.18 per gallon savings equates to $3.60 or less on the majority of tank fill-ups. Let's assume that your average tank holds 20 gallons (probably high, but the math is easier); that means that your average "hard working" American, who drives a gas guzzling SUV, with 10 cup holders, needs to drive the equivalent of San Francisco to Bangor in order to save enough money for a modest night out at a restaurant of his/her choice. Of course, as the actual gasoline refiners can't just turn on and off their production capacities (minimize demand), there is the age-old supply and demand issue: If we all start driving more - because we're saving 18 cents/gallon at the pump - we will create more demand (maximize demand) and further increase the "base" price of gas, so instead of a nice filet mignon, our meal might be McDonalds, but "those who hate us most" will be pleased to count their added profits.
What's it all got to do with biodiesel? We need an alternative to our current situation. We can't strive to save only $0.18/gallon; that's striving to fail. We need an alternative infrastructure. Biodiesel, made from existing waste streams, is a viable answer. It's vastly superior for the environment (a critical attribute for a debate that has been overshadowed, temporarily, by the relentless upward march of gas prices, but it's a debate that must be continued and one for which a solution must be found). It's a piece of the next-generation energy infrastructure that is available today, and it saves people substantial amounts of money. One 50 gallon batch from a BioPro 190 creates $150 of "savings". That's in two days! If you're a power user and use the BioPro 190 24/7 - and we have a lot of users who do this - in 90 days, which is the term of the proposed McCain/Clinton tax holiday, you will save $6,750. That is meaningful and cleaner savings and, we hope, will get people to strive for meaningful and cleaner change.
