Thursday, June 16, 2011

New posts from Gas 2.0!

New posts from Gas 2.0!

Senate Votes to End Ethanol Subsidies

Posted: 16 Jun 2011 04:09 PM PDT

Today marked the beginning of the end for the 45-cent-per-gallon ethanol blending subsidy, as the U.S. Senate voted 73-27 to end the subsidy. But that doesn't mean the ethanol subsidy will end overnight. Here's why.

First and foremost, President Obama and the White House have already released a memo stating that they do not support ending all ethanol subsidies, which cost the government about $6 billion. That means Obama could veto the bill (if it makes it through the House), even though the subsidy is widely regarded by deficit hawks and environmentalists alike as a wasteful windfall to the oil industry. As it is, the main beneficiaries of the blending subsidy are oil companies themselves, who earn a hefty 45-cents per gallon of ethanol they blend into gas reserves.

The bill that passed the Senate would also end a 54-cent-per-gallon import tariff on ethanol, which was largely designed to protect domestic corn growers from Brazilian sugarcane growers. So at the same time we would be ending an ethanol subsidy, we'd also be encouraging growth of the biofuel by allowing imported ethanol to compete on a level playing field. So don’t expect domestically-produced ethanol to just disappear. It’ll be around for a while yet.

Like I said though, don't count on it happening anytime soon. That such a measure was even able to make it through the Senate, and with such a whooping majority, is a bit of a breakthrough. Just not enough of a breakthrough to make a difference. Make no mistake though, this is the beginning of the end for ethanol subsidies in America, and its days are numbered.  So what’s next on the chopping block?

Source: Reuters

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to HEMIs. You can read about his slow descent into madness at Sublime Burnout or follow his non-nonsensical ramblings on Twitter @harshcougar.

Department of Defense Wants More Fight for Less Fuel

Posted: 16 Jun 2011 12:51 PM PDT

Even the Department of Defense knows that oil is a volatile and limited resource, and they are planning for a future without it. The DOD has released a new energy strategy designed to get more fight out of less fuel.

Currently, all military vehicles are required to be able to run JP-8, jet fuel, and many of them do run it on a daily basis. As you might imagine, keeping a massive military well fueled takes a lot of gasoline. It took over 10 billion gallons to power our war machine in 2010, at the cost of over $13.2 billion, with some fuel costing more than $400 per gallon. That helps the DOD makes up about 80% of the entire federal government's energy use. 80% of convoys in Afghanistan are primarily for using fuel, and some 3,000 U.S. servicemen have been wounded or killed in Afghanistan and Iraq defending these fuel convoys. Those are some scary numbers to military brass, who have outlined a new energy strategy designed to get them off the oil standard.

There plan is simple, and three-fold; reduce demand and improve efficiency, secure energy security, and build energy security into the future fighting source. The military has explored multiple alternative fuel options, and at this point there is no telling what direction they could go, though they only have by 2040 to do it. But from biofuel jets to hybrid Hummers and algae-powered Navy vessels, the future of our armed forces is looking leaner, meaner, and greener.

Source: Green Car Congress | Department of Defense | Image:  U.S. Air Force

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to HEMIs. You can read about his slow descent into madness at Sublime Burnout or follow his non-nonsensical ramblings on Twitter @harshcougar.

China Plans to Expand High Speed Rail Across Asia, Into Europe

Posted: 16 Jun 2011 08:46 AM PDT

Political analysts agree that China is expanding its influence across much of Asia through dramatic economic and diplomatic policies. One such policy is the creation of a high speed rail across much of Southeast Asia, and eventually into Europe.

Right now, there is no official "master plan" regarding the when, where, and how of this huge high speed rail network. The first step though is to link neighboring land-locked Laos (which has just 2 miles of train track total) with China. From there, experts believe China will expand its rail network through Laos, Thailand, Myanmar, Vietnam, Cambodia and eventually Singapore. Such a network could eventually wind its way right into Russia and perhaps one day, Western Europe. Imagine being able to hop a train from Paris to Hong Kong, without the aggravation of a plane flight.

The end goal for this network is a two-day trip from London to Shanghai…not quite as fast as an airplane, but infinitely more comfortable.  However, this rail network is as much about economics as it is expanding China's influence across Southeast Asia. Of course, given that the current rail network in China is subject to poor construction, high corruption, and anger over costly ticket prices, government leaders may want to solve these problems before exporting a Silk Rail Road.

Meanwhile America can’t even get its trains into the triple digits. Sigh…

Source: Inhabitat | NPR | Transport Politic

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to HEMIs. You can read about his slow descent into madness at Sublime Burnout or follow his non-nonsensical ramblings on Twitter @harshcougar.
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