September 17, 2010
OPEC’s Success is America’s Failure
Published in Biofuels Journal Blog
OPEC (Organization of Petroleum Exporting Countries) celebrated its 50th Anniversary yesterday and along with this anniversary should come the painful reminder that their success is our failure.
In other words, America let itself become addicted to foreign oil and as a consequence, put our country’s security at risk.
In an effort to make Congress aware that it has the power to make change, Growth Energy, along with ethanol supporters, hosted a press conference in the House Agriculture Committee Hearing Room.
Tom Buis, the CEO of Growth Energy, said to those in attendance, “For 50 years, the OPEC oil cartel has had America over a barrel of foreign oil.
"We have had the opportunity in the past to break this chain.
"We need to enact policies to ensure we won’t be celebrating another 50 years for OPEC.
“Since the inception of OPEC we have had conflict in and with the Middle East.
"We’ve invested generations of soldiers and untold trillions in warfare in the Middle East, over access to oil.,” continued Buis.
“We’ve experienced $4-a-gallon gasoline, gas lines and oil shocks to our economy. Every year we pay $300 billion annually – the equivalent of a thousand-dollar-a-person tribute—to foreign countries for oil,” Buis said.
“Today, after 50 years of OPEC, we suggest it is time to retire this cartel’s hold over our country.”
This week, the U.S. Department of Energy’s Energy Information Administration reported that last month the U.S. imported 63% of its oil, or 382 million barrels in August 2010.
In sum, we sent $29.3 million, or $656,000 per minute to foreign countries.
These numbers should frighten all Americans – especially our policy makers who are elected to look out for our best interests.
Unfortunately, if our legislators stay their current course our country will in fact remain beholden to OPEC and watch the cartel celebrate another 50 years.
However, they do have the opportunity to make change, first by extending the ethanol subsidies (VEETC), second through the approval of E15 and third by passing legislation that would require all vehicles sold in the U.S. to be flex-fuel vehicles.
But that is just a start.
They also need to make the loan guarantee program a priority, make a commitment to investing in renewable energy and invest in building higher blend infrastructure that would allow ethanol to compete in the marketplace.
“All that is necessary to break the hold that OPEC has on America is to end gasoline’s monopoly and allow all fuels to compete in an open market,” said Jeff Broin, CEO of POET and Co-Chair of Growth Energy.
“With access to the market, American ethanol could replace OPEC oil well before we get to OPEC’s 75th birthday.”
I hope that in 50 years, someone is writing about how America has OPEC over a barrel – a barrel of American produced ethanol.
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