Fuel News

Horizontal fracking is spurring a boom in oil and natural gas exploration across the U.S.  The drilling technique has brought environmental controversy to many states, and it now appears to be bringing a new angle to the oil and gas business in Kansas, which has its own unique environmental concerns.

Controversy over a proposed oil pipeline from Alberta, Canada to Texas is bubbling up again. In Nebraska, critics are focusing on the threat to underground water supplies.
 

The federal government pays oil companies about $6 billion a year to use ethanol.   That subsidy was once iron clad, but things have changed, and now Congress could cut it off as soon as the end of this month.   Funny thing is, the ethanol industry says it doesn’t really care.  

The U.S. Senate in mid-June voted to end a $6 billion a year tax credit supporting the ethanol industry.  And at least one expert believes this may actually help the industry.

 

The Associated Press reported that the Senate measure will be added to a bill renewing a federal economic development program -- and the prospects for the overall bill are uncertain.  Read that story HERE

The U.S. State department has delayed its decision on whether to approve a permit for TransCanada to build the Keystone XL oil pipeline. But while federal officials take more time to go over environmental issues, landowners along the proposed pipeline route in Nebraska are facing urgent decisions

President Obama has unveiled his vision for the country’s energy future. Harvest Public Media reporter Jessica Naudziunas on April 1 spoke with U.S. Agriculture Secretary Tom Vilsack , the man who will help implement the agriculture side of Obama’s energy plan. Here is a transcript of the conversation about how  how American farmers, agriculture and biofuels will play a role in Obama’s goal of cutting foreign oil imports by ⅓ by the year 2025.

As oil prices rise, so does dialogue about finding new oil reserves in the United States.  There’s some hope in new drilling technology that is providing access to previously out-of-reach oil in the western United States. The Niobrara shale basin — in Wyoming, Colorado and Nebraska — shows particular promise.

The prospect of expanded oil drilling in Nebraska has safety advocates concerned about drinking water. That’s because both vertical and horizontal drilling these days involves hydraulic drilling — basically creating fractures and propping them open with sand.

The “next generation” of ethanol has been in development for decades, but significant progress has been hard to come by — and may still be a long way off.  Even corn ethanol’s most ardent supporters say it can’t completely replace petroleum as a fuel.  There is no way to grow that much corn — and besides, devoting the entire crop to fuel would severely exacerbate world hunger.

When it comes to filling up the gas tank with ethanol-blended fuel, lots of American drives pay attention to price, fuel economy and engine performance. The ethanol industry fights hard to shape public opinion of the fuel, and it has now found a new way to get its message across in a partnership with NASCAR.  This February, starting at the Daytona 500, NASCAR will be filling up with Sunoco Green E15 gasoline — a 15 percent ethanol gas blend. It’s got just a bit more ethanol than E10, what many gas stations today offer as regular fuel.  Ethanol trade group Growth Energy signed a six-year deal with NASCAR to promote the fuel.

Dozens of ethanol plants have sprung up in small farm communities throughout the Midwest. And those plants have provided jobs and economic growth.  Consider Cambridge, in south-central Nebraska, where on a cold December day a steady stream of semis hauling corn drove onto large weight scales outside an ethanol plant. Earlier this year there was no line of trucks. The plant sat desolate after the locally owned company that built it just last year went belly up.

As the ethanol industry eats up more and more corn, it has helped drive up the prices of grain.  That’s good news for the Corn Belt, but the meat and dairy industries are up in arms over the high cost of their main feed.  And ultimately, consumers feel the rising costs, most strongly in the prices of meat, dairy and eggs.

Congress this week extended a tax subsidy for ethanol, along with an import tariff supporting the fuel — which already enjoys a guaranteed market.   But, what are taxpayers getting for their money?

Click HERE earn more about this Harvest Special Report

Starting in February 2011, NASCAR's race car drivers will add another logo on their vehicles, marking the use of fuel blended with 15 percent ethanol in all cars on the speedway. The partnership between the corn-based fuel and America’s most watched sport was officially launched Dec. 2 with a live simulcast in 14 locations across the country.

In the 1970s, the federal government funded the Aquatic Species Program, which looked into how algae oil could be tapped for transportation fuel. Funding was cut in 1996 when cheaper types of biomass, such as corn, became standard.  Now, with the country’s renewed interest in domestic fuel choices, scientists such as Keesoo Lee at Lincoln University in Jefferson City, Mo., are taking a fresh look at algae.

The Environmental Protection Agency announced Wednesday, Oct. 13, that it raised the maximum amount of corn-based ethanol that could be blended with gasoline from 10 percent to 15 percent.  The decision sparked a flurry of back and forth between trade, environmental and consumer groups.  

 

Coverage of the issue has been robust, and we’ve rounded up links to some of the news reports.

The Environmental Protection Agency is expected to make a decision this month on the use of 15 percent ethanol in gasoline (vs. the currently allowed 10 percent). But approval would apply to 2007 model year and newer cars — what the EPA calls “Tier 2” vehicles.  And that could lead to customer confusion.

Gas station owners have been blending on-site to make regular unleaded fuels into mid-grade and premium for years. But these next-generation pumps dispense unleaded gas and higher blended ethanol gasoline from the same pump. While the consumer doesn’t do the fuel blending, there is plenty of concern about potential confusion.

The Mojave valuable to rare plants and animals and the people who want to protect them. That's why Sen. Dianne Feinstein (D-CA) has proposed a national monument to keep some Mojave lands off-limits to energy development.