thrimironaxe
Member
- Aug 12, 2008
- 66
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In the 1800's United Fruit became immensely powerful in Latin America, earning the company universal dislike in those nations (this is one of many reasons why its name was changed to Chiquita in 1984). Despite its monopoly, there is one type of power that the company never acquired: pricing power. If the price of tropical fruit got out of hand, people could always eat other types of food.
What does this have to do with energy? We can accomplish "energy security" the same way we accomplished "fruit security". We do not have to make our own ... as long as the global market is competitive (i.e. not a monopoly).
How do you create a competitive global market in liquid fuels? OPEC controls oil ... so we need a non-oil alternative. Bio ethanol is the answer.
The United States must stop protecting national corn-to-ethanol (this madness makes no thermodynamic sense and it makes no economic sense). Tropical sugar cane-to-ethanol is about 3000% more efficient from an energy surplus point of view (net EROI is 30% for corn and 1000% for sugar cane). It is also cost competitive against gasoline with no subsidy or government incentive at all.
OPEC is terrified of sugar cane to ethanol - but they are not scared of corn to ethanol at all. That is because they can do the math just as well as I can. If OPEC knows that raising the price of oil will generate ethanol competition, they have an incentive to keep prices reasonable. Just like united fruit.
Strangely enough, in this global economy, Iowa farmers are probably the last real friends that OPEC has left.
What does this have to do with energy? We can accomplish "energy security" the same way we accomplished "fruit security". We do not have to make our own ... as long as the global market is competitive (i.e. not a monopoly).
How do you create a competitive global market in liquid fuels? OPEC controls oil ... so we need a non-oil alternative. Bio ethanol is the answer.
The United States must stop protecting national corn-to-ethanol (this madness makes no thermodynamic sense and it makes no economic sense). Tropical sugar cane-to-ethanol is about 3000% more efficient from an energy surplus point of view (net EROI is 30% for corn and 1000% for sugar cane). It is also cost competitive against gasoline with no subsidy or government incentive at all.
OPEC is terrified of sugar cane to ethanol - but they are not scared of corn to ethanol at all. That is because they can do the math just as well as I can. If OPEC knows that raising the price of oil will generate ethanol competition, they have an incentive to keep prices reasonable. Just like united fruit.
Strangely enough, in this global economy, Iowa farmers are probably the last real friends that OPEC has left.