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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Senators one-up Bush with ethanol goal
Hydrocarbon AlternativesWhen the Senate passed an ethanol-friendly energy bill last month, there was no particular scientific or economic reason for setting 36 billion gallons -- six times what is used today -- as America’s renewable fuels requirement within 15 years.

But there was a political reason for that number: Senators wanted to one-up President Bush, who had called for 35 billion gallons in his State of the Union message.

The ethanol bandwagon was speeding so swiftly that even the industry was stunned by the lofty numbers.

Fueled by adroit politicking, potent themes and farm-state clout, ethanol may get the opportunity to reach that number — if a nearly 30-year run of luck doesn’t run out.

For ethanol, the next step in Congress could be trickier, given other energy priorities and its growing list of adversaries. But for now, ethanol and corn growers are still riding high, their political successes prompting envy even from enemies.

“We may or may not be addicted to oil, but we sure are addicted to the politics of ethanol,’’ said Charlie Drevna, an official with the National Petrochemical and Refiners Association.

Lincoln JournalStar

Posted on Monday, July 30 @ 14:35:23 PDT by rumspringa
 
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