Natural Disaster
What Can Washington Do To Reduce Oil Use
June 16, 2010 - 12:51 PM | by: William La Jeunesse“Each of us has a part to play in a new future that will benefit all of us. If we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs.”
Those were the words from President Obama last night, as he addressed the nation about the Gulf oil crisis.
So what is the fastest road to recovery and reducing our dependence on fossil fuels? It begins on the highway, because a majority of the oil in the United States is used for transport.
Wind and solar, while a big part of the cap and trade argument and an alternative to coal fired electricity, aren’t transportation fuels. However, natural gas is.
The U.S. is the Saudi Arabia of natural gas. If every new car sold in the U.S. was natural gas powered, we could still all drive for decades on domestic supply alone.
Supporters say it burns cleaner than gasoline and is 40 percent cheaper. Performance wise, it is similar in acceleration, but it doesn’t take you as far on a single tank.
The problem is infrastructure. There is nowhere to fill up natural gas vehicles, as it is predominantly a fleet fuel, used for things like city buses. Also, there is currently only one natural gas car sold commercially in the U.S., the Honda GX. Ford and Chevy are coming out with their own models next year.
So what can Washington do? First, the government could provide tax credits if you lease a natural gas car. Also, a 100% tax credit if you install a natural gas fueling station.
Another option is ethanol, which is already here. Right now, every gallon of gas you buy contains a 10% ethanol blend. In the U.S., 100% of ethanol comes from home grown corn.
Critics say however, ethanol is neither cleaner not cheaper than gasoline and raises the price of food. It requires billions of dollars in subsidies and the fertilizer used to grow the corn pollutes our rivers.
Also, automakers say cars built before 2001 can’t handle 15% ethanol. They say it is corrosive to rubber seals on the fuel pump and fuel lines and may require expensive repairs.
So what can Washington do? It could allow cheaper, cleaner sugar ethanol to be brought in from Brazil and the Caribbean. The government could provide a 50% income tax credit for ethanol infrastructure, important for the next generation of bio-fuels. Also, it could increase the blend mandate from 10 to 15%, meaning 20 million gallons a day less of gasoline.
“We are talking about transforming one of the largest industries in the world- the transportation energy sector,” said Anthony Eggert, Commissioner of California’s Energy Commission.
“We must recognize it’s going to take some time- but if we don’t start today we are never going to get there.”
Electric cars will also hit the market next year, proving consumers with another choice. Government subsides could add up to $10,000 per car.
The bottom line: oil is a superior fuel source and it will dominate our transportation sector for decades to come, but if the US is to break its oil addiciton, it must start somewhere. That will be neither cheap nor painless.
William La Jeunesse & Laura Prabucki contributed to this report.



























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