Posts tagged with: gasoline

Koehler Urges Higher Gas PricesU.S. households are projected to save an estimated average $550 on gasoline in 2015. According to U.S. Energy Information Administration’s Short Term Energy Outlook, “The average household will spend about $1,962 on gasoline in 2015, the first time that average will have fallen below $2,000 in five years.” Readers as well may assume the likelihood that falling fuel prices will exert some type of downward pressure on food and other commodity prices, which will be cheaper to bring to market.

By any realistic measure, this is great news for the United States in general and for the struggling lower middle class and poverty-stricken specifically. To those for whom reality is somewhat more elusive, however, it’s a travesty. Unfortunately, some of these individuals are advocating against the use of fossil fuels at cross purposes with their religious vocations. For example, nine bishops representing The Latin American Bishops Conference, the Symposium of Episcopal Conferences of Africa and Madagascar, the Federation of Asian Bishops Conferences and the French and Brazilian bishop’s conferences called for ceasing the use of fossil fuels: “We express an answer to what is considered God’s appeal to take action on the urgent and damaging situation of global climate warming.” (more…)

As citizens await state decisions on new state EPA “fracking” regulations, many are worried radical environmentalist may compromise a promising opportunity in the development of gas reserves.

Natural gas advocates say radical environmentalists have long demonized the oil industry in their fight against free enterprise. Environmental groups claim fracking techniques to extract natural gas threatens the cleanliness of ground water, but their attacks contradict EPA studies that report there are no proven cases where fracking has contaminated water.

Extreme environmental groups have teamed up with some in the media to push their anti-growth agenda. A Heritage Foundation blog reports,

Environmentalists […] have hijacked media outlets like The New York Times to run biased reports against fracking’s key contributions to America’s current and future energy supplies that would be a tremendous catalyst for the country’s economic recovery.

Though more EPA fracking studies are currently underway, environmentalist accusations contradict solid facts and studies. With almost any human activity, there will be some sort of environmental effect, but the benefits of shale drilling blows the costs out of the water. According to experts, a typical Marcellus Shale well can generate up to $4 million in economic benefits while only creating $14,000 in environmental damage.

If given the chance, the Independent Petroleum Association of America suggests the oil industry has the potential to lift our economy back on its feet again:

Petroleum powers the economy of this nation overall, evidenced by [a] strong correlation between states that have high petroleum use and high output. Petroleum is integral in our daily lives, not just as a fuel, but because it is present in common objects that are crucial to living a high-quality life.

But radical environmental groups often stand in the way. Some of these groups insist on “biological egalitarianism” in which all life forms are considered equal. An Acton publication titled A Biblical Perspective on Environmental Stewardship explains the dangerous connotation of this faulty environmental philosophy:

Instead, this philosophy negates the biblical affirmation of the human person’s unique role as steward and eliminates the very rationale for human care for creation. The quest for the humane treatment of beasts by lowering people to the level of animals leads only to the beastly treatment of humans.

Extreme environmental groups should remember the oil industry is not evil. They fail to see that their radical ideology is hurting the nation’s poor. Increasing oil production can fuel economic growth and provide jobs for the unemployed. To attack the oil industry in such a way is indirectly attacking human development. Cited in Ray Nothstine’s commentary on high gas prices and its impact on the poor are these words from John Paul II,

Besides the earth, man’s principle resource is man himself. His intelligence enables him to discover the earth’s productive potential and the many different ways in which human needs can be satisfied.

Of course, any human action has some effect on the environment; and so we have the responsibility to exercise environmental stewardship rather than prioritizing the fish in the Chesapeake Bay over the welfare of the human person.

Ethanol subsidies, once considered a sacred cow, are facing the possibility of being axed from the budget. The Senate cast a deciding vote, 73-27 in repealing the 45 cent per gallon subsidy to refiners for blending gasoline with ethanol, and the 54 cent per gallon tariff on imported ethanol.

Cutting the ethanol subsidy and repealing the tariff still face an uphill battle as it must pass the house and get the signature of President Obama, who has vowed not to fully repeal the subsidy. Supporters of ethanol are fighting harder to preserve the subsidy and tariff, and are now issuing claims that the ethanol subsidy keeps gas prices lower than what they would be if the subsidy wasn’t in place.

Iowa State University released a study arguing that ethanol has helped suppress gasoline prices. It is of no surprise that supporters of the ethanol subsidy and tariff have embraced the study by Iowa State University with open arms and are using it to add weight to their position.

Unfortunately for supporters of the ethanol subsidy, the Institute for Energy Research, released its own study debunking the arguments from Iowa State. While the Institute for Energy Research admits that removing the ethanol subsidy will result in a short-term spike in gasoline prices, they argue that in the long run consumers are better off without the ethanol subsidy–ideally the country would’ve been better off if the subsidy had never existed.

Those who claim that removing the ethanol subsidy and tariff will increase gasoline prices also fail to acknowledge principles of basic market economics. By removing the tariff, the United States is able to import cheaper ethanol from countries like Brazil, which produce the cheaper sugar-based ethanol, thus making ethanol more affordable for consumers. As a result, the market adds a product to compete with gasoline, and through competition, may drive the price of gasoline lower.

The concept of competition driving down prices is explained by Joel Velasco, former chief representative in North America for the Brazilian Sugarcane Industry Association. Velasco argues that competition between corn and sugarcane ethanol will benefit consumers. The principle of competition found in his argument can be applied to competition between gasoline and ethanol as well.

While it may seem like ethanol from Brazil is a perfect solution, there are unintended consequences that must be weighed. Ecology professor at the University of São Paulo in Brazil, Luiz Martinelli, warns of the many problems with Brazilian ethanol in an article published in the Cornell Daily Sun. Martinelli explains that ethanol production pollutes the environment and results cause serious problems:

Ethanol production fosters deforestation in Brazil. Sugarcane needs a well-defined drought season to concentrate sugars in the cane stalk, making the wetter Amazon region less than ideal for growth. Consequently, growers convert increasing areas of land in the transitional area between the cerrado grasslands and the Amazon forests to sugarcane. As a result, the increase may indirectly lead to deforestation as other crops, like soybean, are pushed into the Amazon.

“We don’t have much room for deforestation. If sugarcane causes 1,000 of squared kilometers of deforestation, we’ve set off any savings [of avoided carbon emissions] that we have saved,” emphasized Martinelli.

Such unintended consequences were also articulated by Ray Nothstine on the PowerBlog in 2007 as religious leaders began to express alarm about increasing ethanol production:

Religious leaders are speaking out. In March, Roman Catholic bishops in Brazil warned that a rapid increase in ethanol production based on sugar cane could lead to widespread deforestation, massive relocation of workers and their communities, and harsh working conditions for cane cutters. Analysts predict that Brazil, the world’s largest exporter of ethanol, may increase ethanol production as much as 40 percent in the next four years. “We are going to turn the country into a huge cane (plantation),” said Cardinal Geraldo Majella Agnelo. In Colombia, Christian aid organizations say armed groups are driving peasants off their lands to make way for plantations of palm oil, another biofuel. Acreage dedicated to production of the palm oil tree has more than doubled in the last four years.

Nothstine later explains in “‘Big Corn’ and Unintended Consequences” how corn ethanol will increase food prices, is more costly to produce and transport, and has pollution problems.

If ethanol made from sugarcane gains traction in the United States and other countries, the same questions that have been raised by corn ethanol must also be asked when it comes to sugar-based ethanol. Will we have a problem with unintended consequences? Will sugar ethanol contribute to rising food prices in a manner similar to that of corn ethanol? What effects will sugar ethanol have on the environment, and what are the impacts of deforestation?

Now meeting the goal of cutting our dependence depends largely on two things: first, finding and producing more oil at home; second, reducing our overall dependence on oil with cleaner alternative fuels and greater efficiency. This begins by continuing to increase America’s oil supply.

These were the words spoken by President Obama on March 30 in an address he gave at Georgetown University on America’s energy security.  The president also stated in the same speech that “one big area of concern has been the cost and security of our energy,” and “ … our best opportunities to enhance our energy security can be found in our own backyard … ”

Today, Fox News reports that the Environmental Protection Agency (EPA) is forcing the Shell Oil Company to scrap its efforts to drill for oil in the Arctic Ocean,  off the northern coast of Alaska. The move by the EPA is based on the decision that the arctic drilling will be hazardous to those who reside in a small village located 70 miles away from the proposed off-shore drill site.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.

The stakes associated with Shell’s proposed drilling site are  high: an estimated 27 billion barrels of oil. Furthermore, oil production on the North Slope of Alaska is currently so low that any more decrease in production will result in the shutdown of the pipeline.  Is that how we reduce dependence on foreign oil?

The problem is the Obama Administration is not walking in step with the president’s most recent speech. Today they scrapped what may have become an important step to increasing more oil produced in America. President Obama stated in his speech, “…producing more oil in America can help lower oil prices, can help create jobs, and can enhance our energy security…”

In the same speech he said:

Right now the [oil] industry holds tens of millions of acres of leases where they’re not producing a single drop. They’re just sitting on supplies of American energy that are ready to be tapped. That’s why part of our plan is to provide new and better incentives to promote rapid, responsible development of these resources.

Again, it doesn’t look like the Obama Administration is following through with its message.

Among other problems, we can see that this latest action by the Obama Administration will do nothing to slow the rapid rise in the price of gasoline.  In a recent commentary, Ray Nothstine articulates many of the problems Americans are seeing by the rising gas prices:

Many individuals and families are already curtailing discretionary spending to save for gas. In turn, more money and jobs exit the U.S. economy for oil exporting countries.


Some lawmakers from both parties in oil producing states are asking for more domestic drilling, more refineries, and uniform state standards on gasoline mixture requirements. All of these proposals will help lower prices and could add hundreds of thousands of American jobs.

President Obama has responded by saying an increase in domestic drilling “will help some.” He also signaled he may be willing to tap more of the Canadian oil sands, but at the same time, he wants to cut oil imports by one-third.

High prices at the pump can offer a moment to pause too and remember a spiritual truth. The price of gas not only draws attention to the Middle East, but it draws our attention back to the Garden of Eden that tradition places in that oil-rich region.

Oil itself is decayed vegetation and plankton that has seeped into the ground, forming over millions of years. At one time wildlife was abundant and forests were especially lush in the garden. In the creation story we are reminded that after the fall of man, we have to toil for resources (Genesis 3:19).

While we are bound to labor, 17th century Bible commentator and Presbyterian minister Matthew Henry reminds us, “Let not us, by inordinate care and labor, make our punishment heavier than God has made it; but rather study to lighten our burden.”

President Obama’s speech, delivered on March 30, 2011, can be read here.

To read Ray Nothstine’s commentary, “High Gas Prices Devastating to Poor” click here.

As the Drudge Report today hails the coming of the fuel-efficient Smart car, it might be worth pointing out other ways in which people are adapting to deal with higher fuel prices. I don’t mean to minimize any of the pain associated with skyrocketing energy costs, whether personal (I feel it, too) or economy-wide, but it is interesting to observe the myriad and often unexpected effects of price changes. It’s the market working. Or, to put it another way, it’s the human mind working to adapt creatively to the challenge of scarce resources.

The search for fuel-efficiency has, for example,…

…hurt the trucking industry, but given new life to long-suffering railroads.

…convinced growing numbers of urbanites to use mass transit.

…been a boon for bicycle shops.

…hurt many parts of the auto industry, but has also spurred a sharp advance in hybrid auto sales.

Blog author: jballor
Thursday, June 21, 2007

Do you consider gasoline to be a gift from God? You should.

Andy Crouch, editorial director of the Christian Vision Project at Christianity Today, writes in a recent Books & Culture piece, “As our family sits together, eyes closed, we say grace. Today it’s Timothy’s turn. ‘God, thank you so much for all we have,’ he begins in what turns into a typically prolix nine-year-old’s prayer. Eventually he is done—’in Jesus’ name, Amen’—and I turn the key. We have just filled up our car with gasoline.”

The Crouch family has introduced a tradition of praying at the pump, to recognize the gift that is the ability to fill up with gas and drive around. I think that’s a great thing to do.

But even still, Crouch seems to have a hard time fully admitting that petroleum products ought to be seen as manifestations of divine grace.

“Unlike a well-prepared meal, gasoline does not prompt gratitude unbidden. The stuff is smelly, dangerous, and not at all self-evidently good in itself. It is a means to my ends, juice for a momentary sense of power and control. It is surprisingly hard to remember to stop and say thanks before I pull out, a little too quickly, into traffic,” he writes.

I have to say that I’ve had some meals of my own that were pretty smelly and/or dangerous, and the parallels between food fuel for the human body and gas fuel for the car could perhaps be expanded further. But seriously, it seems to me that, despite the new family tradition, Crouch is having a hard time admitting that something like gasoline is just as much a gift from God as our daily bread.

I’m not quite sure what this means: “I can reasonably expect that the food I eat today will be replaced by a fresh crop next season. But the gallon of gas I burn today is gone for good (though it does leave behind 19 pounds of carbon dioxide for the biosphere to absorb). In this fleeting historical moment that will be remembered as the petroleum era, saying grace seems like the least we can do.”

Maybe we all should think about thanking God for gasoline, not only when we are at the pump, but also when we’re sitting down to our “well-prepared meal,” which was made possible by the foodstuffs delivered from all over the world by petroleum-powered vehicles.

Blog author: jballor
Wednesday, December 27, 2006

Our series on the year in review continues with the second quarter:


“Surprise! Evangelical Politics Isn’t Univocal,” Jordan J. Ballor

So from issues like immigration to global warming, the press is eager to find the fault lines of evangelical politics. And moving beyond the typical Jim Wallis-Jerry Falwell dichotomy, there are real and honest disagreements among evangelicals on any number of political issues….


“How Do You Spell Relief?” Jordan J. Ballor

If Congress really wants to address the rising price of oil over the long-term, the only thing it can really do is act on what it directly controls. Congress doesn’t control supply and demand, but it does control how much it adds in taxes to the price per gallon. Why not cut or suspend the federal gas tax indefinitely?…


“There are more environmentalist misanthropes than you think,” Jay Richards

But anyone who reads widely in the environmental literature knows that suggestions such as Pianka’s are not uncommon. In fact, the desire for mass human death follows logically from the anti-human beliefs of some radical environmentalists. Some are more consistent in their beliefs than others. But Pianka is by no means the only person to express such opinions….