The constant oil prices increase
in the world market is something that has been affecting many world economies
as well as local products and services.
Rising cost has been a deterrent to economic growth and tempers the business
communities especially manufacturing sectors from ever expanding progressively.
Oil prices are being dictated
upon by a few oil producing countries and thus everyone else in the world that
primarily depends on imported oil are bound by the mercy of oil producing
countries.
So I made a few research onto how
the US was able to have lesser impact by the unstable oil price and demand
factors and its due to the alternative fuel called Ethanol.
ETHANOL BUBBLE
This is what I learned from the
history of how the US became an advocate of alternative fuel.
In 1974, as the United States was
reeling from the oil embargo imposed by the Organization of Petroleum Exporting
Countries, Congress took the first of many legislative steps to promote ethanol
made from corn as an alternative fuel.
The gradual phase out of lead in the 1970s and 1980s provided an
additional boost to the fledgling ethanol industry. (Lead, a toxic substance,
is a performance enhancer when added to gasoline, and it was partly replaced by
ethanol.) A series of tax breaks and subsidies also helped. In spite of these
measures, with each passing year the United States became more dependent on
imported petroleum, and ethanol remained marginal at best.
Now, thanks to a combination of
high oil prices and even more generous government subsidies, corn-based ethanol
has become the rage. There were 110 ethanol refineries in operation in the
United States at the end of 2006, according to the Renewable Fuels Association.
Many were being expanded, and another 73 were under construction. When these
projects are completed, by the end of 2008, the United States' ethanol
production capacity will reach an estimated 11.4 billion gallons per year.
Ethanol is a renewable fuel made
from corn and other plant materials. The use of ethanol is widespread, and
approximately 97% of gasoline in the U.S. contains some ethanol. The most
common blend of ethanol is E10 (10% ethanol, 90% gasoline). Ethanol is also
available as E85 (or flex fuel)—a high-level ethanol blend containing 51%-83%
ethanol depending on season and geography—for use in flexible fuel vehicles.
E15 is defined by the Environmental Protection Agency as a blend of 10.5%-15%
ethanol with gasoline. It is an approved ethanol blend for use in model year
2001 and newer light-duty conventional vehicles.
Ethanol Benefits and
Considerations
Ethanol is a renewable,
domestically produced transportation fuel. Whether used in low-level blends,
such as E10 (10% ethanol, 90% gasoline), or in E85 (a gasoline-ethanol blend
containing 51% to 83% ethanol, depending on geography and season), ethanol helps
reduce petroleum use in transportation and greenhouse gas (GHG) emissions. Like
any alternative fuel, there are some considerations to take into account when
contemplating the use of ethanol.
Energy Security
Depending heavily on foreign
petroleum supplies puts the United States at risk for trade deficits and supply
disruption. In 2014, 27% of petroleum products were imported. That number has
declined during the past 10 years because of increased domestic crude supplies
and ethanol production.
Fuel Economy and Performance
A gallon of ethanol contains less
energy than a gallon of gasoline. The result is lower fuel economy than a
gallon of gasoline. The amount of energy difference varies depending on the
blend. For example, E85, with 83% ethanol content, has about 27% less energy
per gallon than gasoline (the impact to fuel economy lessens as ethanol content
decreases). Gasoline vehicles, including flexible-fuel vehicles (FFVs), are
optimized for gasoline. If they were optimized to run on higher ethanol blends,
the fuel economy penalty would likely be less.
Job Impacts
Ethanol production creates jobs in
rural areas where employment opportunities are needed. According to the
Renewable Fuels Association, ethanol production in 2014 led to the addition of
nearly 84,000 direct jobs across the country, $53 billion to the gross domestic
product, and $27 billion in household income.
Lower Emissions
The carbon dioxide released when
ethanol is burned is balanced by the carbon dioxide captured when the crops are
grown to make ethanol. This differs from petroleum, which is made from plants
that grew millions of years ago. On a life cycle analysis basis, GHG emissions
are reduced on average by 40% with corn-based ethanol produced from dry mills,
and up to 108% if cellulosic feedstocks are used, compared with gasoline production
and use.
Equipment and Availability
Low-level blends of E10 or less
require no special fueling equipment, and they can be used in any conventional
gasoline vehicle.
It is also possible to
accommodate blends above E10 in existing fueling equipment, however, some
equipment needs to be upgraded to comply with federal code. See the Codes,
Standards, and Safety page and the Handbook for Handling, Storing, and
Dispensing E85 and Other Ethanol-Gasoline Blends (PDF) for detailed information
on compatible equipment.
FFVs (which can operate on E85,
gasoline, or any blend of the two) are available nationwide as standard
equipment with no incremental cost, making them an affordable alternative fuel
vehicle option. Fueling stations offering E85 are predominately located in the
Midwest. Find E85 fueling stations in your area.
Ethanol is a renewable fuel made
from various plant materials collectively known as "biomass." Nearly
97% of U.S. gasoline contains ethanol, typically E10 (10% ethanol, 90%
gasoline), to oxygenate the fuel and reduce air pollution.
Ethanol is also available as E85
(or flex fuel), which can be used in flexible fuel vehicles, designed to
operate on any blend of gasoline and ethanol up to 83%. Another blend, E15, has
been approved for use in newer vehicles, and is slowly becoming available.
There are several steps involved
in making ethanol available as a vehicle fuel:
Biomass feedstocks are grown,
collected and transported to an ethanol production facility
Feedstocks are converted to
ethanol at a production facility and then transported to a fuel terminal or
end-user by rail, truck, or barge
Ethanol is mixed with gasoline at
the fuel terminal to make E10, E15, or E85, and then distributed by truck to
fueling stations.
Fuel Properties
Ethanol (CH3CH2OH) is a clear,
colorless liquid. It is also known as ethyl alcohol, grain alcohol, and EtOH
(see Fuel Properties search.) Ethanol has the same chemical formula regardless
of whether it is produced from starch- and sugar-based feedstocks, such as corn
grain (as it primarily is in the United States), sugar cane (as it primarily is
in Brazil), or from cellulosic feedstocks (such as wood chips or crop
residues).
Ethanol has a higher octane
number than gasoline, providing premium blending properties. Minimum octane
number requirements prevent engine knocking and ensure drivability. Low-octane
gasoline is blended with 10% ethanol to attain the standard 87 octane requirement.
Ethanol contains less energy per
gallon than gasoline, to varying degrees, depending on the volume percentage of
ethanol in the blend. Denatured ethanol (98% ethanol) contains about 30% less
energy than gasoline per gallon. Ethanol’s impact on fuel economy is dependent
on the ethanol content in the fuel.
Ethanol Energy Balance
In the United States, ethanol is
primarily produced from the starch in corn grain. Ethanol produced from corn
demonstrates a positive energy balance, meaning that the feedstock and fuel
production does not require more energy than the amount of energy contained in
the fuel.
Cellulosic ethanol improves the
energy balance of ethanol, because cellulosic feedstocks are anticipated to
require less fossil fuel energy to produce ethanol. Biomass used to power the
process of converting non-food-based feedstocks into cellulosic ethanol also
reduces the amount of fossil fuel energy used in production. Another benefit of
cellulosic ethanol is that it results in lower levels of life cycle greenhouse
gas emissions. (Find out more about emissions related to ethanol.)
PHILIPPINES Joins the Bandwagon of
Alternative Fuel
Although the Philippine came in
far too late in joining the alternative fuel bandwagon, it was only in 2006
that the Philippines Biofuels Act was enacted that requires oil companies to
use biofuels in all liquid fuels for motors and engines sold in the
Philippines. All gasoline sold in the country must contain at least 5 percent
ethanol by February 2009, and by 2011, the mandated blend can go up to 10
percent. The new law is expected to bring a number of benefits to the country:
"Commercial production of
ethanol from sugarcane, cassava or sorghum will help the island nation
diversify its fuel portfolio and help to ensure its energy security. It could
also generate employment, particularly in rural regions, as investors put up
biofuel crop plantations and processing plants. Also, the shift to these
plant-based fuels for transportation will help reduce pollution."
Four feedstocks—sugarcane, corn,
cassava and sweet sorghum—were initially identified for ethanol production, but
sugarcane is expected to be the predominant source of ethanol. The Philippines
is a sugar-producing country, and sugarcane is grown mainly in the islands of
Negros, Luzon, Panay and Mindanao. Despite growing demand for sugar, there are
still an estimated 90,750 hectares (224,000 acres) of sugarcane available that
can be used for ethanol production, and high-yielding varieties of sugarcane
are available.
This is a good start especially for farmers and small
communities that are mostly in agricultural reliance, with the unstable prices
of commodities, there is a new source for which agricultural products are
process and use as a means of fueling the Philippine economy, though still a
far cry from dependence on the oil producing countries, it’s a good start in
reducing a percentage of our previous absolute dependence on imported fuel.
