Wednesday, July 28, 2010

Sniffing Ethanol

The problem with corn ethanol is that creating it requires about as much energy as it generates. Were it not for government subsidies, it would fail. Instead government mandates its expansion.

Farming corn requires only 35% of the production energy total; refining 65%. In terms of EROEI (Energy Return On Energy Invested), the most efficient U.S. refinery produces 1.18 output for 1.00 input. In the attached table, Minnesota's 1.14 (EROIRG, in the last column) is the most efficient. In other words, for 7.5 gallons of ethanol produced, 6.5 gallons or their energy equivalent are consumed in growing and refining. In states such as Texas and Missouri, ethanol production requires more energy input than output. In the table, the next-to-last column (EROIPG) relates the efficiency of farm production.

Overall, the average efficiency is approximately 1.05 to 1.00, one gallon net for every 20 gallons consumed, less than 5% efficiency. Compared to gasoline, one gallon is consumed for every ten gallons produced, or a 90% efficiency. Even Canadian tar sands or oil shale outdistance ethanol, easily, and this is before considering ethanol has only 62% of the energy of gasoline.

Ethanol production stands on the government's subsidy of 51-cents per gallon, combined with a protective tariff of 54-cents per gallon. Otherwise sugar-cane ethanol from Brazil could compete with subsidized corn-based ethanol. Unsubsidized corn-base ethanol cannot compete with its own costs of production, and this doesn't consider soil or aquifer depletion. It's a boondoggle keeping the price of corn up, bio-refiners in business, Midwestern congressmen in office, and food prices higher the world over.

Ethanol produced in oak barrels, by comparison, provides profits to its producers, $16 per gallon taxes to the Federal government, 6-10% sales tax to state governments, products for export, and contributes to the pursuit of happiness for its consumers.

Saturday, July 17, 2010

An End to Nuclear Arms? Doubt it!

The Russian Federation sits above China. Russia has a population of 141 million, down from 148 million when the Soviet Union dissolved. The majority of that population resides in the European areas near Moscow and St. Petersburg; few in the Asian areas where the majority of Russia's plentiful natural resources are.

Russia is the richest country in the world in terms of natural resources. After the Soviet Union went bankrupt, Russia invited many international corporations in to develop its natural resources with revenue sharing as the contingent reward. It worked well. Twenty years later, Russia is the world's second-largest exporter of oil and natural gas and the seventh-largest holder of American debt.

China is the most populous country in the world with 1.3 billion people and could well use the natural resources to its north. Without Russia's nuclear arms, how long would China take to acquire those natural resources?

Russia is not suicidal.