Green Car Advisor

Oil

September 18, 2009

Study: U.S. Subsidies for Fossil Fuels Are More Than Twice Those for Renewables

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The vast majority of U.S. federal subsidies for fossil fuels and renewable energy from 2002-2008 supported fossil energy sources that emit high levels of greenhouse gases when used as fuel, according to research released today by the Environmental Law Institute in partnership with the Woodrow Wilson International Center for Scholars.

Applying a conservative approach, the respected organizations found that the U.S. government provided substantially larger subsidies to fossil fuels than to renewable fuels.

Subsidies to fossil fuels -- a mature, developed industry that has enjoyed government support for many years -- totaled approximately $72 billion over the study period, representing a direct cost to taxpayers.
 
Over the same period, subsidies for renewable fuels -- a relatively young and developing industry -- totaled $29 billion, the study found. What's more, of the $29 billion, more than half -- $16.8 billion -- went toward corn-based ethanol, the climate effects of which are hotly disputed.
  
The study also found that most of the largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables were time-limited initiatives implemented through energy bills, with expiration dates that limit their usefulness to the renewables industry.

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August 18, 2009

U.S. Firm Says It's Found Cheap, Easy Way to Convert Plastic to Oil

Plastic-containers.jpgEditor's Note: It has come to our attention that the claims expressed by Moinuddin Sarker might not be rooted in good science, but we are not in a position to disprove them.

Plastic and petroleum fuels come from the same place - crude oil. So with more than 15 million tons of plastic entering the nation's waste stream every year, and with the U.S. importing more than 12 million barrels of oil per day, why not turn some plastic into oil?

That's the question a Connecticut-based startup asked itself - and it intends to provide the answer.

Moinuddin Sarker says that his company, Natural State Research, has developed a way to turn waste plastic into finished oil products for a final cost of less than $1 a gallon.

The process, Sarker said, is as simple as heating up the plastic until it becomes vapor, and then letting it condense back into liquid - the way water droplets condense on the cover of a pot of boiling water.

It works because both plastic and oil are made up of carbon molecules, only plastics' molecules are long chains called polymers. Breaking the bonds in the chains, Sarker said, results in smaller carbon-based molecules - the basis for fuels.

While at least six other companies in the U.S. and abroad are already converting plastic to fuel, Sarker said that the technology that NSR has developed is simpler and cheaper.
 
The company uses a natural air mix at normal pressures, whereas most other companies depend on processes that use oxygen-free air and high pressures, said Sarker, vice president of research and development at NSR.

Almost any type of plastic can be used, Sarker said, and various types of finished fuels - like gasoline, diesel and jet fuel - would be the result.

Sarker said the company is still tweaking the process, but its plan is to build a pilot facility in the next six months, and by 2011 or 2012 to start commercially licensing or selling the technology, which is currently pending patent approval.

Because each ton of plastic can yield about 8 barrels of oil, U.S. plastic waste could theoretically generate 120 million barrels of oil per year. With U.S. oil consumption at more than 19 million barrels a day, that would amount to reducing 2 percent of annual oil use by, essentially, recycling some of it.

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May 28, 2009

Once Antagonistic, Big Oil Now Warms to Ethanol and Other Biofuel Companies

Ethanol-plant-in-South-Dako.jpg For decades, the big oil companies and the farm lobby have been fighting about ethanol, with the farmers pushing to produce more of it and the refiners arguing it was a boondoggle that would do little to solve the country's energy problems.

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Right, an ethanol plant in South Dakota.
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So why are technicians for British Petroleum, the giant oil company, now working at an experimental ethanol plant in the old Louisiana oil town of Jennings, helping to make it more efficient?

The erstwhile enemies, it turns out, are gradually learning to get along, as refiners increasingly see a need to get involved in ethanol production, according to a report in Wednesday's New York Times. Ethanol, made chiefly from corn, now represents about 9 percent of the country's market for liquid fuels.

And the percentage is growing year after year because of federal mandates. With the nation's thirst for gasoline, and the ethanol that is blended into it, expected to revive when the economy does, the oil companies want to be in a position to take full advantage.

The interest expressed by big oil companies is coming in the nick of time for small companies that desperately need capital and cannot find it these days in the private markets.

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Study: Oil Prices Will Return to $110/Barrel in 2015, Possibly Hit $200/Barrel in 2030

Yesterday's-Gas-Price.jpg Most Americans likely expect the price of gasoline to one day reach the record highs we saw last summer. The question is not so much will the price soar again, but rather when will it.

According to the Energy Information Administration's 2009 outlook report released today, oil prices will return to $110 per barrel in 2015 and could go up to $200 per barrel in 2030, depending on supply

You'll recall that the nationwide price for a gallon of regular unleaded topped $4 when the barrel price of oil reached $147. But with taxes on gasoline expected to rise, the per-gallon price of gasoline will likely be significantly higher than $4 when the barrel price of oil revisits $147.

World energy consumption - the driving force behind higher gasoline prices - is forecast to increase by 44 percent from 2006 to 2030, the report says, with almost two-thirds of that coming from developing countries and fossil fuels that continue to dominate energy supply.

Developing countries are projected to increase demand by 73 percent by 2030 in the outlook's base reference case - EIA's analysis under current laws and policies - whereas developed countries will grow by 15 percent, the report says.

Liquids, including biofuels, will reportedly continue to be the primary energy source in the world's transportation sector unless there are "significant technological advances" and despite several policy changes.

Unconventional resources such as oil sands and biofuels will become increasingly competitive, accounting for about 13 percent of the world's liquid supply by 2030, according to the report.

The U.S. in particular will see an increase in biofuels, mostly in advanced cellulosic rather than corn-based ethanol, acting Administrator Howard Gruenspecht said at the report's release event in Washington.

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May 5, 2009

Backers Say It Is Time For BioButanol To Take Its Place in Energy Lineup

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By Greg Johnson, Contributor

It's been four years since David Ramey fueled up his unmodified 1992 Buick Park Avenue with butanol derived from biomass and made a 10,000-mile road trip that took him from Blacklick, Ohio to San Diego and back.

The trip, which included stops along the way to court members of the media and environmental agency personnel, was conceived as a way to prove that "biobutanol" had inherent environmental and fuel-economy benefits over its better-known cousin in the green fuels family, ethanol.

Flash forward to 2009 and biobutanol still isn't getting the respect that Ramey and other proponents say the fuel deserves. Ramey, for example, continues to make demonstration drives - he'll fuel up a vehicle with biobutanol for the Fourth off July parade in nearby Gahanna, Ohio.

"There has been very little funding for biobutanol research over the past 30 years and we are simply in the infancy of this new technology," Ramey wrote in a recent email to Green Car Advisor. "Many are talking about biobutanol but few are producing it."

That situation is about to change, according to biobutanol backers who describe the fuel as a worthy challenger to ethanol. When properly formulated, they say, butanol burns cleaner than ethanol, has a higher energy density, can be transported in existing petroleum-product pipelines and won't hurt seals, gaskets or other parts of internal combustion engines.

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April 28, 2009

San Diego Unveils Algae Coalition To Advance "Green Gold" Research

 

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Algae cultures that could lead to green oil products are being grown in a UC San Diego laboratory.

They call it "green gold," and its proponents are betting that the light, sweet crude oil that can be extracted from farm-cultivated algae will help the world to cut its dependence upon dirty and increasingly expensive gasoline and diesel fuels that are extracted from fossil fuels.

And, on Tuesday, San Diego -- which envisions itself as the green equivalent of the traditional oil industry's Houston -- unveiled a "broad-scale research effort" to turn that dream into a reality.

Though no dollar figures for financial support were discussed during Tuesday's press event on the UC San Diego campus, the research effort will build upon the creation earlier this year of the San Diego Center for Algae Biotechnology. The center was created to facilitate green fuels research being conducted by 272 scientists at UC San Diego, The Scripps Research Institute and other San Diego universities, research organizations and for-profit companies.

SD-CAB estimates that algal research in San Diego County already generates $16.5 million in payroll and $33 million in overall economic activity. Tuesday's announcement of an even broader research and development effort was made by San Diego Mayor Jerry Sanders and UC San Diego Chancellor Marye Anne Fox.

"By sharing and facilitating the interactions of these multiple researchers through this center, we hope to make sustainable algae-based fuel production and carbon-dioxide abatement a reality within the next five to 10 years," Fox said. "This consortium will strengthen our ability to obtain grants and attract resources to the area.  Algal biofuels will allow us to reduce our dependence on fossil fuels and other economies, and will provide opportunities for a new economy and workforce."

It is a tall order, but San Diego claims to have the R&D nucleus needed to move toward that goal.

The Xconomy blog counts at least nine algal research efforts under way -- including work being done by defense contractors SAIC Corp. and General Atomics (which is better known as the creator of the unmanned Predator aircraft in service in Iraq, Afghanistan and Pakistan).

We wrote about one of those companies (Sapphire Energy) last May, as well as a California Energy Commission grant to another company (albeit, not in San Diego) that is pursuing algal research.

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April 14, 2009

Uncle Sam Forecasts Relatively Low Gasoline Prices During Summer Months

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Low gasoline prices are a boon for recession-weary consumers who are struggling to make ends meet. But cheaper gasoline also can be a deal-killer when it comes to persuading motorists to pay a relative premium for hybrid cars, fuel-sipping diesels or vehicles with fuel-efficient but relatively expensive direct-injected, supercharged engines.

So green automotive technology buffs had best fasten their safety belts before reading the federal Energy Information Administration's annual  "Short-Term Energy and Summer Fuels Outlook."

Domestic gasoline prices are forecast to stay relatively low during the summer months that typically are a high-demand season. The EIA forecast calls for regular-grade gasoline to peak at $2.30 per gallon, with the summer average falling to $2.23 per gallon. That would mark a dramatic drop from last summer's per-gallon average of $3.81.

Though motorists will continue to benefit from lower petroleum prices, the weak economy will continue to dampen demand. Gasoline consumption should grow by 1.0 percent to 9.1 million barrels per day, according to the EIA forecast, but that growth is measured against last summer's consumption, which was "low due to the high gas prices and hurricane-related distribution problems."

Flat Until Q3

EIA doesn't expect gasoline consumption to begin showing consistent year-over-year growth until the third quarter.

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December 22, 2008

All Ethanol-Based Biofuels More Harmful to Humans Than Fossil Fuels, Study Finds

E&E-Science.jpg Cellulosic ethanol, which people from President-elect Barack Obama to struggling farmers from his home state view a promising biofuel, is actually worse than much-criticized corn ethanol because cellulosic ethanol results in more air pollution, requires more land to produce and causes more harm to wildlife, a major study has found.

The energy alternatives "that are good are not the ones that people have been talking about the most. And some options that have been proposed are just downright awful," said Mark Z. Jacobson, a professor of civil and environmental engineering at Stanford University, in a paper that reviewed and ranked major proposed energy-related solutions to global warming, air-pollution mortality and energy security.

"Ethanol-based biofuels will actually cause more harm to human health, wildlife, water supply and land use than current fossil fuels," he said, adding that ethanol may also emit more global-warming pollutants than fossil fuels, according to the latest scientific studies.

Jacobson has conducted the first quantitative, scientific evaluation of the proposed major energy-related solutions by assessing not only their potential for delivering energy for electricity and vehicles, but also their impacts on global warming, human health, energy security, water supply, space requirements, wildlife, water pollution, reliability and sustainability.

His findings indicate that the options that are getting the most attention are between 25 to 1,000 times more polluting than the best available options. His findings were published in this month's issue of Energy & Environmental Science.

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December 18, 2008

U.S. Military in Iraq Realizes Army's Dependence on Oil Cost Soldiers Their Lives

Military-Solar-Array.jpg At the height of the violence in Iraq, the most dangerous thing for an American soldier to do in the lawless province of Anbar was drive in a fuel convoy.

There were urgent requests for vehicles with better armor to withstand improvised explosive devices (IED), but what if soldiers from supply units never had to travel on a road laden with IEDs in the first place?

Dan Nolan realized that if the military could reduce its fuel consumption, fewer convoys would be exposed to possible ambush in Iraq, and lives would be saved, according to a report published today by Climate Wire (subscription required).

As an adviser to Army General Tommy Franks at the U.S. Central Command and chief of the power task force at the Fort Belvoir, Virginia-based Rapid Equipping Force -- a think tank for military innovation -- the 26-year Army veteran knew what he had to do. He set out to make American bases in Iraq more energy efficient.

The idea grew into a program to markedly cut the amount of fuel the military burns in diesel generators powering air-conditioners in Iraq's smoldering heat by spraying insulating foam on tents and barracks in forward operating bases. Eventually, all U.S. military bases at home and abroad will become energy independent through the use of renewable energy and highly efficient insulated tents and buildings, Nolan hopes.

A program that was started to minimize battlefield casualties may end up boosting the role of renewables in society as a whole, changing the country's energy model and helping to shrink the military's vast carbon footprint.

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December 11, 2008

Obama's Choice to Head U.S. Department of Energy Is a Big Proponent of Biofuels

Steve-Chu-400x267.jpg By John O'Dell and Scott Doggett

Steven Chu, President-elect Barack Obama's choice to head the Energy Department, has been a strong advocate of alternative fuels and a vociferous opponent of fossil fuels -- foreign oil in particular -- for years.

Most recently, the scientific interests of the 60-year-old Nobel laureate and director of the Lawrence Berkeley National Laboratory have centered on energy and finding ways to replace fossil fuels with other energy sources such as biofuels from plants.

But Chu seems to be at odds with Obama on the role of corn-based ethanol in America's future. The domestic ethanol industry had a huge friend in Obama for most of the past year, while Chu has never been a friend to corn-ethanol producers.

On a segment on PBS' The News Hour  last year, Chu said "corn, at best, is a transition crop, but very quickly we want to transition away from corn to a grass that requires far less land for the amount of fuel, far less fertilizer, far less water."

Chu sees tremendous promise in other biofuels, particularly biofuels that would propel automobiles. In an interview with an Australian radio personality last year, he said transportation fuel is the most valuable form of energy we have -- even when that fuel is electricity.

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December 5, 2008

Scientists Link Whale Strandings With Rising Atmospheric Levels of Carbon Dioxide

Blue-Whale.jpg By Scott Doggett, Contributor

Seawater is becoming more acidic as carbon dioxide from the atmosphere dissolves in the oceans, and the more acidic the seawater, the less sound it absorbs, according to scientists at California's Monterey Bay Aquarium Research Institute.

The result: Noise under the surface of oceans can travel farther today than it could ever before. That's terrible news for whales, dolphins and other marine animals that live in an environment that's increasingly loud anyway, the scientists say.

In the October 1 issue of "Geophysical Research Letters," Monterey Bay's Keith Hester and his co-authors calculated that by 2050 the ongoing changes in ocean acidity will allow sounds to travel up to 70 percent farther underwater than they can now.

Unless the amount of carbon dioxide in the atmosphere is reduced, the rising ocean acid level will increase the amount of background noise in the oceans and could affect the behavior of marine mammals, Hester and other scientists wrote months ago.

This week, scientists meeting at the Convention on Migratory Species in Rome reported that evidence now exists linking loud underwater noises with some major strandings of marine mammals, especially deep diving beaked whales such as the blue whale -- Earth's largest animal -- shown here.

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December 3, 2008

Despite Pre-Election Fuss, Obama Drops Windfall Tax on Oil, Natural Gas Companies

ChangeWeCanBelieveIn.jpg President-elect Barack Obama has quietly abandoned a proposal to slap oil and natural gas companies with a new windfall profits tax.

The revelation came after a small-business group in Northern California discovered the proposal had been dropped from the incoming administration's Web site.

"President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel," a transition aide said, according to an article in Monday's Houston Chronicle. "They are below that now and expected to stay below that."

The price of crude has fallen $100 per barrel since its record close of $145.29 on the New York Mercantile Exchange on July 3, translating to lower prices at the pump.

On the campaign trail, Obama repeatedly called for the use of the proceeds from the proposed new tax to give American consumers an "emergency energy rebate" worth up to $500 per individual or $1,000 per married couple.

The transition aide reportedly said the energy rebate plan was included in a middle class "rescue plan," which called for a permanent tax cut of $500 for a worker or $1,000 for a family, which the president-elect released in mid-October.

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November 12, 2008

Dingell Cites Dated Quotes From Heavy Hitters in Effort to Retain Chairmanship

Dingell-Cruisin-Michigan-Av.jpg Supporters of Representative John Dingell today released a list of favorable--but dated--quotes from Barack Obama, Bill Clinton and Nancy Pelosi concerning the Michigan Democrat as part of the heated battle for the gavel of the House Energy and Commerce Committees.

None of the statements address the specific dispute between Dingell (pictured) and Democratic Representative Henry Waxman of California over the chairmanship, but Dingell supporters hope they will prompt other House members to speak up in favor of their candidate.

At stake: potentially enormous influence over automotive fuel-economy and tailpipe-emissions regulations. Dingell has been the Detroit 3's biggest supporter on Capitol Hill for years, their go-to Congress member to battle environmental restrictions placed on the industry. Waxman has been a proponent of such restrictions.

Dingell has received more than $625,000 from the Detroit 3 the last two decades--more money than all other members of the House from automakers since 1989. Waxman, by contrast, has not received a penny from the industry during his time in office. Dingell has also received $394,591 from the oil and gas industry since 1989, compared to Waxman's $23,580. 

As for the impressive but dated quotes, Obama offered praise for Dingell at a June event in Flint, Michigan. "The senior member of the Michigan delegation is somebody who has done more for working people than just about anybody in the history of the House of Representatives," Obama said.

Former President Clinton's comments came more than a decade ago, in a March 1996 appearance in Taylor, Michigan "I've never met anybody who worked harder for the interest of ordinary Americans and working families than John Dingell--anybody who stood up more, and more consistently," Clinton said.

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November 7, 2008

Waxman Power Play Could Have Huge Impact on Mileage, Emissions Standards

John-Dingell.jpg By Scott Doggett, Contributor

For years, members of Congress have been saying we needed to have more aggressive fuel-economy standards. And for years--32 to be precise--Detroit's automakers have lobbied aggressively to prevent that from happening.

The person the car companies have routinely turned to to fight their battles in Washington is Democratic Representative John Dingell of Michigan (right), the longest serving current member of the House and second-longest serving member in our nation's history.

For more than half a century, Dingell has fought virtually every regulation the automakers have opposed, from seatbelts and airbags to tailpipe emissions and fuel-efficiency standards. His position as chairman of the House Committee on Energy and Commerce has given him enormous influence over such matters.

For nearly as long as Dingell has been in office, critics have charged that elected officials such as him are far too beholden to large corporate interests to regulate them in a socially responsible manner.

One of those critics is Democratic Representative Henry Waxman of California, who has been as strong advocate of fuel-efficiency standards and legislation curbing greenhouse-gas emissions. And this week Waxman stated his intentions to replace Dingell as chairman of the Commerce Committee in a power play the chairmen of the Detroit 3 can only dread.

Henry-Waxman.jpg

On Wednesday, Waxman (left) released the following statement:

"When the new Congress starts in January, we will face unprecedented opportunities and challenges. The public expects Congress and President-elect Obama to work together to find solutions to the nation's most pressing problems. But the issues we will confront are immensely difficult. We will need the very best leadership in Congress and our committees to succeed.

"That is why after long thought I have decided to seek the chairmanship of the Committee on Energy and Commerce. Some of the most important challenges we face--energy, climate change, and health care--are under the jurisdiction of the Commerce Committee. In large measure, our success as Congress will depend on how the Commerce Committee performs.

"Enacting comprehensive energy, climate, and health care reform will not be easy. But my record shows that I have the skill and ability to build consensus and deliver legislation that improves the lives of all Americans."

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November 6, 2008

Business, Environmental Groups Waste No Time Lobbying Obama on Energy Policy

handout.jpg In case Afghanastan, Iraq, formation of a transition team and coping with a national recession weren't concerns enough for Barack Obama on election day plus one, several of the country's biggest business lobbies held their hands out Wednesday for policy largesse from the President-elect.

The National Assn. of Manufacturers, U.S. Chamber of Commerce and Business Industry Political Action Committee all urged Obama to see things their way in making energy independence and economic stimulus his top domestic priorities.

The GOP-friendly business organizations were joined by a major green investment coalition that called on Obama to pursue environmentally friendly policies.

The manufacturing industry group, according to a report by the subscription-only E&E News, which specializes in energy and environmental issues, called on Obama to abandon federal mandates for use of alternative fuels and instead expand domestic production of fuel from oil shale.

The trade group also asked in an open letter to Obama, that his the administration support incentives for energy production from coal as well as development of carbon capture and storage technologies to reduce coal's environmentally damaging impacts.

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November 5, 2008

CEO of Pickens-Run Company Pledges To Help California Despite Measure's Defeat

YesOn10.jpg election08-75x50.jpg Clean Energy Fuels Corp., the company founded and controlled through majority stock interest by Texas oilman T. Boone Pickens, issued a press release today following the defeat of a California ballot measure that would have resulted in rebates for natural-gas-powered vehicles at great taxpayers' expense .

Here is the press release in its entirety:

California voters yesterday turned down Proposition 10. Named The California Renewable Energy and Clean Alternative Fuels Initiative, the measure was a $5-billion, first-in-the-nation public investment to provide funds for a wide variety of clean energy projects across the state, including consumer incentives for clean alternative vehicle fuels and the construction of renewable energy generation facilities, such as solar and wind power plants.

"Everyone talks about reducing the use of imported oil, lowering greenhouse gas emissions and cleaning the air through the use of alternative energy resources, and California's voters considered supporting these critical goals in a meaningful way," said Andrew J. Littlefair, President and CEO, Clean Energy. "The passage of Prop 10 would have provided an important funding mechanism to rapidly turn these goals into a reality throughout the state.

"We supported the initiative, and while Prop 10 may have served as a catalyst to accelerate our growth, its failure does not reduce our opportunities. We believe our core business is strong and pledge to continue to help California and the nation meet our critical goals of reducing imported oil while increasing the use of clean, alternative energy for the health and welfare of all our citizens," Littlefair noted.  

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Obama Sought, and Got, Support of Green-Car Crowd on Road to Presidential Win; We Will Report His Follow-Through on Promises He Made to Them as Time Goes By

Obama-@-SUV-Plant.jpg By Scott Doggett, Contributor

election08-75x50.jpg President-elect Barack Obama made many pledges, laid out lots of goals and otherwise built a substantial political platform to appeal to environmentalists and green-car proponents during an 18-month White House bid that culminated in victory several hours ago. Among those pledges and goals:

  • Increase Fuel Economy Standards. Obama and Joe Biden will increase fuel economy standards 4 percent per year while providing $4 billion for domestic automakers to retool their manufacturing facilities in America to produce these vehicles.
  • Get 1 Million Plug-In Hybrid Cars on the Road by 2015. These vehicles can get up to 150 miles per gallon. Barack Obama and Joe Biden believe we should work to ensure these cars are built here in America, instead of factories overseas.
  • Create a New $7,000 Tax Credit for Purchasing Advanced Vehicles.
  • Establish a National Low Carbon Fuel Standard. Obama and Biden will establish a National Low Carbon Fuel Standard to reduce the carbon in our fuels 10 percent by 2020. Obama and Biden will also require 60 billion gallons of advanced biofuels to be phased into our fuel supply by 2030.
  • Promote the Responsible Domestic Production of Oil and Natural Gas. An Obama-Biden administration will establish a process for early identification of any infrastructure obstacles/shortages or possible federal permitting process delays to drilling in the Bakken Shale formation, the Barnett shale formation, and the National Petroleum Reserve-Alaska.
  • Invest in a Clean Energy Economy and Help Create 5 Million New Green Jobs. Barack Obama and Joe Biden will strategically invest $150 billion over 10 years to accelerate the commercialization of plug-in hybrids, promote development of commercial scale renewable energy, encourage energy efficiency, invest in low emissions coal plants, advance the next generation of biofuels and fuel infrastructure, and begin transition to a new digital electricity grid.
  • Ensure 10 Percent of Our Electricity Comes From Renewable Sources by 2012, and 25 Percent by 2025.

These bulleted items were taken verbatim from Obama's official Web site last night as the Democratic senator from Illinois gave his victory speech. In addition, Obama made many statements during his campaign that we expect him to honor.

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November 3, 2008

Nissan To Offer Least-Expensive New Car in U.S. Market Starting Later This Month

2009-Nissan-Versa-With-1.6L.jpg Nissan North America today announced that a 2009 Nissan Versa sedan fitted with a new fuel-efficient 1.6-liter engine (pictured) will go on sale in the U.S. on November 18 for $9,999, which will make it the least expensive new car available in the country.

The low price excludes destination and handling charges of $695, but it will still significantly undercut those of top contenders in the economy-car segment, which include the Toyota Yaris (starting at $12,205 for the three-door liftback model) and the Nissan Versa hatchback and sedan fitted with a 1.8-liter engine (starting at $12,990).

The Versa sedan's DOHC 16-valve 1.6-liter inline four-cylinder engine achieves 107 horsepower and fuel-economy ratings of 26 miles per gallon in the city and 34 mpg on the highway with the five-speed manual transmission.

The fuel economy drops a tad, to 26 mpg city and 33 mpg highway, with the four-speed automatic transmission.

Brian Carolin, a senior vice president for Nissan North America, said the new model "combines the low price of a used car with the dependability, high quality and full factory warranty of every new Nissan."

The current 1.8-liter Versa hatchback and sedan models produce 122 horsepower, which offers one of the highest standard horsepower/torque ratings in North America and the largest interior in the entry-level segment. Their fuel economy is rated at 26/31 mpg city/highway with a manual transmission and 24/32 with an automatic.  

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Ford Sticks With Small-Car Plans Despite Marketing Blitz for F-150 Pickup Trucks

2009-F-150.jpg Last summer, Ford Motor Co. delayed the debut of the reengineered 2009 F-150 pickup truck after gasoline topped $4 a gallon.

Then gasoline prices dropped, and the sell-down of 2008 models went better than Ford expected.

This past weekend, with the national price for a gallon of regular gasoline hovering around $2.65, Ford launched the first salvo of a barrage of television commercials for the 2009 F-150.

Lower gasoline prices may create a better launch environment for the F-150, but they present a problem for Ford, too. Ford is betting that a wave of European-designed, fuel-efficient small cars will lead its turnaround.

So will the drop in gasoline prices cause Ford to rethink its small-car onslaught? Not at all, says CEO Alan Mulally.

Fuel "prices are going to stay relatively higher, even though they're down right now," Mulally told Automotive News last week.

"The most important thing we can do is have a full complement of small and medium-size cars and utilities that complement our larger vehicles."  

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November 2, 2008

Pickens' Proposition Would Cost Taxpayers Billions, but Benefit Very Few

Pickens-Standing-Tall-250.jpg By Scott Doggett, Contributor

election08-75x50.jpg You can't always get what you want, but if you've got a big pot of money and a sweet-sounding environmental pitch, chances are you can get a proposition on a state ballot. In California, anyway.

And if there's enough money left in the pot to pay for volleys of TV ads after you've paid the people who gathered the signatures needed to put the proposition on the ballot, odds are it will become state law. In California, anyway.

And, because California is such a trendsetting state, if your proposition becomes law there, it stands a good chance of becoming law in other states as well. 

Oil tycoon T. Boone Pickens knows this. It's why the Texas billionaire is bankrolling a proposition -- one that ostensibly would advance renewable energy and alternative fuels -- on California's November 4 general election ballot.

In truth, what it advances most is Picken's fortune -- while costing the state's taxpayers $10 billion.

To give you an idea of how little California can afford Pickens' proposition, consider that officials in Sacramento are expected to announce this coming week that the state's budget deficit has reached at least $10 billion.

The budget crisis is why Governor Arnold Schwarzenegger wrote to Treasury Secretary Henry Paulson last month informing him that "California may need to turn to the Federal Treasury for short-term financing." A bailout, in other words.

At a time when the locomotive that drives America's economic train can least afford it, Pickens' initiative would nearly double California's deficit.

And despite the crushing cost the proposition would levy on all of the state's taxpayers, the ballot measure would benefit very few while throwing a tremendous amount of money behind an automotive fuel that isn't very green compared to other alternative fuels that could benefit from that kind of spending.

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October 22, 2008

Two-Buck Gas Likely to Fuel Re-Addiction to OPEC, N.Y. Times Columnist Writes

Tom Friedman.jpg The 2 is back. Last week, U.S. retail gasoline prices fell below $3 a gallon -- to an average of $2.91 -- the lowest level in almost a year. Why does this news leave New York Times op-ed columnist Tom Friedman with mixed feelings?

Because in the middle of this wrenching economic crisis, with unemployment rising and 401(k)'s shrinking, it would be a real source of relief for many Americans to get a break at the pump. Today's declining gasoline prices act like a tax cut for consumers and can save $15 to $20 a tank-full for an SUV-driving family, compared with when gasoline was $4.11 a gallon in July, he writes (registration required).

Yet, it is impossible for him to ignore the fact that when gasoline hit $4.11 a gallon we changed -- a lot. Americans drove less, polluted less, exercised more, rode more public transportation and, most importantly, overwhelmed Detroit with demands for smaller, more fuel-efficient, hybrid and electric cars. The clean energy and efficiency industries saw record growth -- one of our few remaining engines of real quality job creation.

But with little credit available today for new energy start-ups, and lower oil prices making it harder for existing renewables like wind and solar to scale, and a weak economy making it nearly impossible for Congress to pass a carbon tax or gasoline tax that would make clean energy more competitive, what will become of our budding clean-tech revolution?

This moment feels to him like a bad B-movie rerun of the 1980s. And he knows how this movie ends -- with our re-addiction to oil and OPEC, as well as corrosive uncertainty for our economy, trade balance, security and environment.  

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October 20, 2008

In the Tank for Ethanol: General Motors Reportedly Takes Its Case to China

E85Flag.jpg Even as oil hangs below $70 a barrel for the first time in 14 months, the search for its replacement continues.

General Motors Corp. is in Beijing this week to promote biofuels, its favored short-term alternative to oil, at a conference and in workshops for Chinese media, The Wall Street Journal reported today (subscription required).

GM will be traveling with Coskata Inc., a startup it invested in, that claims to have bred a microorganism capable of turning everything from used tires to straw into ethanol, which can be used as a substitute for or blended into gasoline, the Journal reported.

Ethanol's supporters say it can reduce dependency on Middle Eastern oil imports and burns cleaner than fossil fuel. Critics say the ethanol boom has driven up food prices by diverting corn for use in ethanol plants.

In China, food security is a much bigger concern than in the U.S. The impact of inflation on basic foods can have a devastating impact on the hundreds of millions who are still relatively poor.

China has mandated ethanol blending in 10 provinces, but food security concerns have kept the government from expanding its commitment, the Journal reported, despite concerns over China's growing dependence on imported oil.

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October 17, 2008

With Barrel of Oil Less Than Half What It Cost in July, Will SUVs Stage a Comeback?

Barrels-of-Oil-Downward-Tre.jpg The cost of a barrel of oil is down more than 50 percent from its July 3 high closing price of $145.29. Gasoline prices are below $3 per gallon in most parts of the U.S. So, automakers can crank up those SUV factories again, right?

Wrong, Automotive News states in an article published Thursday (subscription required).

Even with oil closing below $70 a barrel these days, almost no one expects rapidly falling gasoline prices to restore pickup and SUV sales.

"The driver of new-car sales has and always will be job and income growth," George Pipas, Ford Motor Co.'s sales analysis and reporting manager, is quoted as saying. "There is scant little right now. In fact, they're contracting, not growing."

When October sales are tallied in two weeks, lower fuel prices won't translate into higher sales of pickups and SUVs, Pipas predicted. The weak economy, not lower fuel prices, will steer buyers to less expensive vehicles, he believes.

"You'll see a return of growth in small cars in October," the magazine quoted Pipas as saying. "We will see small cars grab a higher share of the segment in October than in September. We'll see SUVs and trucks fall."

Mark LaNeve, GM's vice president of North American vehicle sales, service and marketing, said lower fuel prices might cause some consumers to consider putting a pickup or SUV back on their shopping lists.

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September 11, 2008

U.S. Oil Officials Who Handled Billions in Energy Royalties Allegedly Given Sex, Gifts

Investigative-Reports.jpg Government officials handling billions of dollars in oil royalties engaged in illicit sex with employees of energy companies they were dealing with and received numerous gifts from them, according to three reports released Wednesday by the Interior Department's inspector general.

The alleged transgressions involve 13 Interior Department employees in Denver and Washington. Their alleged improprieties include rigging contracts, working part-time as private oil consultants, and having sexual relationships with -- and accepting golf and ski trips and dinners from -- oil company employees.

EarlDevaney-120x150.jpg The investigations reveal a "culture of substance abuse and promiscuity" by a small group of individuals "wholly lacking in acceptance of or adherence to government ethical standards," wrote Inspector General Earl E. Devaney (pictured ), who was appointed by President Clinton in 1999.

The reports describe a fraternity house atmosphere inside the Denver Minerals Management Service office responsible for marketing the oil and gas that energy companies barter to the government instead of making cash royalty payments for drilling on federal lands.

The government received $4.3 billion in such Royalty-in-Kind payments last year. The oil is then resold to energy companies or put in the nation's emergency stockpile.

Between 2002 and 2006, nearly a third of the 55-person staff in the Denver office received gifts and gratuities from oil and gas companies, the investigators found.

Devaney said the former head of the Denver Royalty-in-Kind office, Gregory W. Smith, used illegal drugs and had sex with subordinates. The report said Smith also steered government contracts to a consulting business that was employing him part-time.  

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September 9, 2008

Honda's CNG Civic Could Help Ignite Discussion of Oil Prices vs Energy Security

PhillatHome.jpg By John O'Dell, Senior Editor

As has been noted here and in our longterm vehicles blog, Edmunds' 2007 Honda Civic GX doesn't generate a lot of news. It's a competent daily commuter with carpool lane access and relatively cheap fuel that is plentiful in some places (ie: Utah, Southern California, parts of Oklahoma) and hard to find in others.

But as a leading player in the alternative fuels arena, Honda's natural gas car it ought to help generate discussion about energy resources.

As we approach a pivotal presidential election (correction - they're all pivotal, this one is going to be a real game-changer in terms of the directions we're heading on many fronts), we need to start talking about oil and gasoline prices and availability versus energy security.

Do we simply want to make more oil available so it and the fuels derived from it are cheaper - "drill, baby, drill," as those  suited cheerleaders at the GOP convention were shouting last week - or do we want to figure out ways to free ourselves from oil's tyranny?

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September 5, 2008

Report from the Trenches: "Beyond Oil" Conference in Redmond, Wash.

By Gordon Feller, Urban Age Institute
 
Is there any end in sight to the endless stream of conferences, convened nearly every day of the week, where the post-carbon future is being debated?

My guess is that the answer is "no" - at least not until new and critically needed policies are adopted by government and the private sector.
 
Beyond copy 1.jpg This is why the Beyond Oil: Transforming Transportation " conference sponsored by the Seattle-based Cascadia Center has been such a useful two-day event.

This program has been more than just another conference -- in some ways is akin to the annual "Meeting of the Minds " organized by Urban Age Institute .

"Beyond Oil" was convened at Microsoft's tech-savvy meeting center at the company's HQ in Redmond, Wash., and one keynote ("A New Road Ahead") was presented by someone we'll be hearing more from: Rob Bernard, Microsoft's Chief Environmental Strategist.

The Redmond gang's clearly thinking very hard about the future of transport, and Bernard hinted that some products are likely to be coming out of their R&D pipelines.

Well known big-wigs - including ex-CIA Director Jim Woolsey - shared the stage with numerous lesser known stars, several of whom deserve a lot more attention than they're now getting.

Two of the best of this latter category are the co-convenors of "Beyond Oil": Bruce Agnew , Cascadia's director, and Steve Marshall , the organization's Senior Fellow.

Cascadia is no longer a secret resource.

With a $10-million grant from the Gates Foundation, it's become a genuine pioneer, helping develop and support policies and practices that could make plug-in hybrid-electric vehicles (and other innovative technology) an integral part of the urban landscape. But they're not car-fixated, as any glance at their research web pages helps to show.

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August 8, 2008

Nissan Cancels Israeli Dealership Fuel Economy Ad That Rankled Saudis


hawk.jpg Ah, the perils of free speech.

We told you earlier this week about an ad on Israeli television touting the fuel efficiency of the  Nissan Tiida (sold here as the Versa) that had offended Saudi Arabian sensibilities for the way it portrayed a few Arab oil moguls cursing the car for its negative impact on oil sales.

"Hawks should peck at you night and day!" one traditionally garbed oil magnate shouts at the car.

The initial story, as broadcast on Saudi Arabia's state-owned MBC TV, made it sound as though the ad had been developed by Nissan.

But the carmaker says that's not the case.

It was an ad developed, produced and paid for by an independent Nissan distributor group in Israel, said Nissan spokesman Simon Sproule.

Indeed, Nissan "didn't know about, didn't review it and had nothing to do with it," he said, adding that Nissan dealers and distributors are free to spend their own money on their own advertising without asking Nissan to first okay the material.

After learning that the ad was viewed by at least some in Saudi Arabia as offensive, Nissan did, however, ask the distributor to stop airing it -- a request, Sproule said, that has been agreed to and complied with.

As for the suggestion by a Saudi representative interviewed in the MBC broadcast that Nissan apologize for the ad or face a boycott, well, that doesn't seem to have much traction.

Nissan hasn't received any such request from the Saudi government, insiders said.

John O'Dell, Senior Editor
 
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August 6, 2008

Nissan Ad in Israel Depicting Arab Oil Lords Assailing Fuel-Stingy Car Incites Saudis

Commercial300.jpg With violence in the Gaza escalating last week and chances of an Israeli-Palestinian peace deal crumbling, who'da thunk the lead story on an prominent Arab newscast Sunday night would revolve around a Nissan commercial promoting the fuel efficiency of one of its cars?

But Saudi Arabia's MBC TV began its Sunday night news broadcast with an outraged report about a Nissan commercial for its Tiida (pronounced Tee-da), a somewhat-sporty economy car that goes easy on the gas.

The advertisement, which has been airing in Israel, depicts wealthy Arab oil barons cursing and otherwise assailing the Tiida, enraged that the car is so fuel stingy.

"You destroyed my home! May God destroy your home!" one shouts at the little white car with a tan interior. "Hawks should peck at you day and night," says another.

It's entirely possible that some Israelis have found the commercial amusing and that possibility angered some Saudis, but that's only a hunch.

After showing snippets of the commercial, MBC proceeded to interview a Saudi representative, who was asked why he thought Israel would broadcast the commercial.

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August 1, 2008

Obama Proposes Tapping Oil Company Profits to Fund Energy Rebates

1000Bucks400.jpg Democratic presidential candidate Barack Obama today pushed for a windfall profits tax to fund $1,000 emergency rebate checks for consumers besieged by high energy costs, in response to Republican rival John McCain's call for more offshore drilling in coastal states like Florida.

The pitch for putting some of the economic burden of $4-a-gallon gasoline on the oil industry served a dual purpose for Obama: It allowed him to talk up an economic issue, seen by many as a strength for Democrats and a weakness for Republicans, and at the same time respond to criticism from McCain that Obama's opposition to offshore drilling leads to higher prices at the pump.

"As we provide relief, we must also be mindful of the swelling budget deficit," Obama said in a text provided by his campaign. "That is why I am proposing that we pay for this rebate by taxing the windfall profits of oil companies like Exxon Mobil - a company that announced yesterday that it made nearly $12 billion last quarter, more than any U.S. corporation has ever made in a single quarter.

"It's time," he added, "we used some of their record profits to help you pay record prices."

McCain, who was also in Florida today, said that "to get our economy running at full strength again, we need to stay focused on creating jobs for our people and protecting paychecks from the rising costs of food, gasoline and most everything else."  

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