Democrats Abroad New Zealand
1.06.2007
Ethanol's Success Story May Have Downside (Boston.com)
As more corn is needed, food costs may rise
By John Donnelly, Globe Staff | January 5, 2007
WASHINGTON -- US factories producing ethanol fuel for cars may consume as much as half of the country's corn crop next year -- more than double earlier government predictions -- creating competition for grain stocks that could drive up supermarket prices for cereals, meat, eggs, and dairy products, according to a report released yesterday.
"The world needs a strategy to deal with this unfolding competition between automobiles and people for the grain supply," said Lester R. Brown , president of the Earth Policy Institute , a Washington- based advocacy organization that wrote the report. Brown called for a moratorium of ethanol plants in the United States "so we can catch our breath and determine how much we want to harvest our corn for ethanol."
Democrats in Congress are expected in the next two weeks to begin a major push for alternative energy, including ethanol, as a way of reducing the country's reliance on foreign oil.
Ethanol plants use corn to create a synthetic form of oil. Feedlot owners, who intensely feed corn to cattle and pigs for four to six months before slaughter, have seen their costs rise dramatically because of ethanol production. The growing competition for corn is expected to create price hikes that will be passed on to consumers who buy anything from milk to pork chops, Brown said.
Ethanol production doubled from 2001 to 2005, and the report said it could double again by 2008 to more than 15 billion gallons, or roughly 6 percent of US auto fuel needs.
(More ... Boston Globe > News > Nation > Washington)
By John Donnelly, Globe Staff | January 5, 2007
WASHINGTON -- US factories producing ethanol fuel for cars may consume as much as half of the country's corn crop next year -- more than double earlier government predictions -- creating competition for grain stocks that could drive up supermarket prices for cereals, meat, eggs, and dairy products, according to a report released yesterday.
"The world needs a strategy to deal with this unfolding competition between automobiles and people for the grain supply," said Lester R. Brown , president of the Earth Policy Institute , a Washington- based advocacy organization that wrote the report. Brown called for a moratorium of ethanol plants in the United States "so we can catch our breath and determine how much we want to harvest our corn for ethanol."
Democrats in Congress are expected in the next two weeks to begin a major push for alternative energy, including ethanol, as a way of reducing the country's reliance on foreign oil.
Ethanol plants use corn to create a synthetic form of oil. Feedlot owners, who intensely feed corn to cattle and pigs for four to six months before slaughter, have seen their costs rise dramatically because of ethanol production. The growing competition for corn is expected to create price hikes that will be passed on to consumers who buy anything from milk to pork chops, Brown said.
Ethanol production doubled from 2001 to 2005, and the report said it could double again by 2008 to more than 15 billion gallons, or roughly 6 percent of US auto fuel needs.
(More ... Boston Globe > News > Nation > Washington)
Labels: Boston Globe, Congress, Energy
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1.04.2007
Democrats Hope to Take From Oil, Give To Green Energy (WashingtonPost.com)
By Steven Mufson
Washington Post Staff Writer
Thursday, January 4, 2007; Page A01
House Democrats are crafting an energy package that would roll back billions of dollars worth of oil drilling incentives, raise billions more by boosting federal royalties paid by oil and gas companies for offshore production, and plow the money into new tax breaks for renewable energy sources, congressional sources said yesterday.
Eager to paint themselves as different from the Bush administration and the past Republican majority, Democratic leaders are targeting a manufacturing tax cut in 2004 that they say gave unneeded incentives to the oil industry, Majority Leader Steny H. Hoyer of Maryland said in a briefing yesterday. Hoyer said Democrats are also planning to force oil companies to pay royalties on deepwater Gulf of Mexico tracts leased in 1998 and 1999; the Interior Department has said that the leases inadvertently failed to include provisions for royalty payments once oil prices rose above certain thresholds.
The repeal of the 2004 tax cuts for the oil and gas industry would generate nearly $5 billion, Democratic lawmakers said, quoting estimates by the Joint Committee on Taxation. The royalty payments would yield between $9 billion and $11 billion, Hoyer said.
But energy industry and congressional sources said that the details of the package remain in flux, in part because of disagreements among Democrats over how the revenue would be used and whether to also roll back oil and gas industry incentives in the Energy Policy Act of 2005, which was supported by many Democrats.
Democratic leaders said House Speaker Nancy Pelosi would introduce the energy package on Jan. 18, toward the end of the "100 hours" of legislative initiatives.
(More ... Washington Post > Business > Special Reports > Oil & Gas Prices)
Washington Post Staff Writer
Thursday, January 4, 2007; Page A01
House Democrats are crafting an energy package that would roll back billions of dollars worth of oil drilling incentives, raise billions more by boosting federal royalties paid by oil and gas companies for offshore production, and plow the money into new tax breaks for renewable energy sources, congressional sources said yesterday.
Eager to paint themselves as different from the Bush administration and the past Republican majority, Democratic leaders are targeting a manufacturing tax cut in 2004 that they say gave unneeded incentives to the oil industry, Majority Leader Steny H. Hoyer of Maryland said in a briefing yesterday. Hoyer said Democrats are also planning to force oil companies to pay royalties on deepwater Gulf of Mexico tracts leased in 1998 and 1999; the Interior Department has said that the leases inadvertently failed to include provisions for royalty payments once oil prices rose above certain thresholds.
The repeal of the 2004 tax cuts for the oil and gas industry would generate nearly $5 billion, Democratic lawmakers said, quoting estimates by the Joint Committee on Taxation. The royalty payments would yield between $9 billion and $11 billion, Hoyer said.
But energy industry and congressional sources said that the details of the package remain in flux, in part because of disagreements among Democrats over how the revenue would be used and whether to also roll back oil and gas industry incentives in the Energy Policy Act of 2005, which was supported by many Democrats.
Democratic leaders said House Speaker Nancy Pelosi would introduce the energy package on Jan. 18, toward the end of the "100 hours" of legislative initiatives.
(More ... Washington Post > Business > Special Reports > Oil & Gas Prices)
Labels: Energy, Washington Post
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