Tuesday, April 15, 2008

What Goes Around, Comes Around: Ethanol vs. Oil

Interesting how things turn out...

Once upon a time the US had low energy/fuel costs which allowed it to produce cheap, abundant food in such quantity that it was made available to the world's population. Then the ragheads and nutty South Americans, who were already filthy stinkin' rich, decided where the US could pay more for fuel. Whatever shall we do?

Everyone knows nothing happens in a vacuum; there is always a reaction to any action, and often a cascade of events. Here's the one we're lookin' at now:

Demand for replacement cheap energy source is huge, this drives the search for cheap energy sources. During this search folks get the bright idea that food crops can be converted into useful fuel. Last I looked Ethanol from corn was $85 a barrel while oil was $100+. This encourages energy companies to start using ethanol in their products, meaning they buy a lot of the stuff which drives the price of corn up while encouraging increased crop production of corn. The corn used to go to the world market as food, now it's going into the market as fuel. But folks still gotta eat, right?!

There's less food out there and demand is still high, the price goes up. The US won't just give the stuff away so much. Food crop production is up, but it's going heavily to corn destined for nonfood use. The EU isn't helping matters much with its global warming bullshit biofuels mandates. The other food crops will shrink in relation and it is from this portion that folks are lookin' to get fed. Who are they going to look to?

Seein' as a shitload of folks live near dessert who depend on US surplus food to live they are liable to turn to the folks pumping oil out of said dessert, who started this whole process by the way, for relief - barring that relief they will be lookin' a whole lot like the french revolution only hungrier, meaner, and more raggedy-assed.

The US will get the blame, but we've got the food. And soon, the energy.

I wouldn't rule out coal becoming king again, either. Global warming is on the skids and there are a lot of ideas out there to "clean" up coal. Combustion technology, materials, and controls have advanced in a quantum leap since coal was last implemented as a locomotion source. Wouldn't it be cool if the old steam locomotives were to become feasible again? A local railroad man just took delivery of a NEW steam locomotive from China. They still manufacture and use them. Coincidence?



What we really need is steam turbine locomotives.

Like this one from 1938:


GE built them and they were complete electric power plants on wheels. Piece of cake!

No comments: