Posts Tagged ‘biofuel’

The Obama Navy Illustrates Why America Is Sinking: PC Navy Buying Biofuel At $16 A Gallon

December 14, 2011

In Obama’s God damn America we do truly breathtakingly stupid things and then keep doing them until we collapse.  And then of course we can also add a healthy mixture of Obama’s crony capitalist fascism:

Navy buys biofuel for $16 a gallon
posted at 7:00 pm on December 11, 2011 by J.E. Dyer

This is going to help the Defense Department weather looming budget cuts, for sure. Teaming up with the Department of Agriculture (which has a cheery Rotary Club ring to it), the Navy has purchased 450,000 gallons of biofuel for about $16 a gallon, or about 4 times the price of its standard marine fuel, JP-5, which has been going for under $4 a gallon.

You won’t be surprised to learn that a member of Obama’s presidential transition team, T. J. Glauthier, is a “strategic advisor” at Solazyme, the California company that is selling a portion of the biofuel to the Navy. Glauthier worked – shock, shock – on the energy-sector portion of the 2009 stimulus bill.

The Navy sale isn’t Solazyme’s first trip to the public trough, of course. The company got a $21.8 million grant from the 2009 stimulus package.

Solazyme’s partner in the biofuel sale is Dynamic Fuels, a Louisiana company owned jointly by Tyson Foods and Tulsa-based Syntroleum. Tyson and Syntroleum are distinguished by having profitable lines of business that do not rely on government grants to unprofitable “green” projects. This does not make their biofuel product price-competitive with fossil fuels, however. (They were induced to develop biofuel manufacturing processes by a combination of subsidies and tax breaks.)

The Dynamic Fuels plant was opened for business in Geismar, LA in 2010, becoming by far the largest biofuels plant in North America – and reportedly, in combination with a plant in Finland, a producer of 94% of the world’s biofuels. This is great boosterism stuff, but the biofuels produced by Dynamic Fuels are still considerably more expensive than the fossil-fuel alternative. Dynamic Fuels has begun supplying aviation biofuel to KLM, the Dutch flag carrier, but of course, the use of more-expensive biofuels by commercial carriers has to be subsidized by governments.

If governments stopped subsidizing biofuels, their artificial “profitability” would disappear overnight. Price-wise, they can’t compete with fossil fuels. The day may come when they can, but subsidizing them while they don’t is not a method with any record of success for encouraging price efficiency. What it does instead is create languishing public dependencies and tremendous opportunities for cronyism, as demonstrated in the Solyndra scandal.

As the Institute for Energy Research article (top link) indicates, the US has enormous reserves of both conventional and unconventional oil and natural gas resources. Opening them up for exploitation would, among other things, ensure that the US armed forces could buy cheaper fuel – cheaper than today’s prices – produced in the USA. At a time when federal debt is spiraling and the Defense Department is facing budget cuts that are guaranteed to gut the fighting forces and render them ineffective, it seems to border on insane to eschew a ready, significantly cheaper alternative and require the armed services to quadruple what they pay for fuel as a proof of concept – apparently with the idea that the forces should buy more of the 4-times-as-expensive fuel. This is, after all, our national security we’re talking about.

While Obama is making the Navy shoot itself in both feet by buying fuel that costs FOUR TIMES what they need to spend, he is simultaneously demanding that the military’s budget be gutted by $600 billion – AFTER he already gutted it $450 billion the year before.

And to “pay for” forcing the Navy to purchase fuel that costs four times more than what they had been buying, Obama is going to lay off more than 3,000 valuable mid-level sailors who make up the heart of our armed forces.

Hopefully all that biofuel is for ships with names like “The USS Dodo Bird.” Because that’s the way we’re going under this president’s leadership. Or maybe the “USS Teapot Dome” in honor of Obama’s in-your-face blatant corruption.

Biofuel Liberals Are Killing People

September 9, 2008

The news in Ethiopia isn’t good:

UNITED NATIONS – The U.N. humanitarian office said Monday that food shortages in Ethiopia have reached alarming levels following widespread drought in the country.

Relief organizations are grappling with a “considerable shortage of supplies,” with the U.N. World Food Program in need of $136 million for its operation in the Horn of Africa nation, U.N. spokeswoman Michele Montas said.

Why are relief organizations grappling with such a “considerable shortage of supplies”?  Because, as an Economist article titled, “Cheap no more” puts it:

Rising incomes in Asia and ethanol subsidies in America have put an end to a long era of falling food prices (more…)