Today in Biofuels Opinion: “Congress has recognized the important role that the tariff plays in reducing U.S. dependence on foreign energy sources”

From the Renewable Fuels Association: “The Commodity Futures Trading Commission (CFTC) is preparing a detailed report on the role of speculators in the oil market. The CFTC report, set to be released sometime in August, is expected to outline the significant role speculation played in driving the wild swings seen in oil prices over the past 18-24 months.

“At its peak last summer, oil hit $148 per barrel before falling to a low of $33 per barrel in December 2008.

“Common sense told us that speculation, both in energy markets as well as in other commodities like grains, was a significant factor in the rollercoaster ride we have experienced in commodity markets of late,” said Renewable Fuels Association President Bob Dinneen. “While we don’t know the full extent of CFTC’s report, we are hopeful the Commission also examined the role of speculators in grain markets. Last year’s rapid swings in the price of corn corresponded perfectly with the dramatic swings in oil prices, suggesting that the oil market was in the driver’s seat and other commodities were just along for the ride. Still, I hope the CFTC gives all commodity markets the scrutiny they deserve and uncovers the true causes of last year’s unprecedented volatility.”

From Senator Charles Grassley of Iowa: “Dear Secretary Clinton and Ambassador Kirk: I am writing with regard to the nomination of Thomas A. Shannon, Jr., to be Ambassador to Brazil.  The Senate Foreign Relations Committee held a hearing on Mr. Shannon’s nomination on July 8. During the hearing, Mr. Shannon was asked whether it was his view that both the United States and Brazil would benefit from the United States removing its tariff on imported ethanol. Mr. Shannon stated that it was his belief that such an action would indeed be “beneficial.”  Mr. Shannon’s stance on the ethanol tariff is at variance with that of the Congress.

“The ethanol tariff was extended by Congress in 2008. Just one year earlier, in 2007, the Senate soundly rejected an amendment to remove the ethanol tariff. In maintaining and extending the tariff, Congress has recognized the important role that the tariff plays in reducing U.S. dependence on foreign energy sources.

“It also appears that Mr. Shannon’s statement is contrary to the position of President Obama. While a United States Senator, the President recognized the benefits of the domestic biofuels industry and supported the tariff. He maintained this position as a presidential candidate. A clear signal of the President’s stance on this issue would decrease the possibility of confusion in America’s heartland and in Brazil regarding the ethanol tariff if Mr. Shannon were confirmed as Ambassador to that country.  Please note that I expect a response to this letter before a confirmation vote on Mr. Shannon’s nomination takes place.”

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Study Brazil’s oil policy, not ethanol, in seeking energy independence, says report

The National Center for Policy Analysis released a study concluding that US policymakers should study Brazil's oil production efforts, rather than ethanol production, in order to reduce US dependence ...

Today in Biofuels Opinion: “Reducing energy dependence is the highest national security priority for the American public” says survey

From Public Agenda and Foreign Affairs: The Spring 2008 edition of the "Confidence in U.S. Foreign Policy Index" from Public Agenda and Foreign Affairs shows that 60 percent of Americans say reducing ...

Today in Biofuels Opinion: “Should Congress end its subsidies for ethanol?”

Should Congress end its subsidies for ethanol? Andrew P. Morriss, University of Illinois at Urbana-Champaign: "YES. In 2005, a coalition of Midwestern corn growers, giant agribusinesses, environmen...

Today in Biofuels Opinion: Gov. Hoeven of North Dakota, Sen. Lugar of Indiana

Senator Richard Lugar of Indiana: "As Hoosiers, we can appreciate the devastating impact of the current global food crisis. Our farmers know that the current situation was produced by a complex web of...

Today in Biofuels Opinion: “Algae commercially grown in the ocean on specialized platforms could reduce the high costs.”

Manning Feraci, NBB’s Vice President of Federal Affairs: “The biodiesel tax incentive is working. Since its enactment in 2004, U.S. biodiesel production has reached commercial scale, and the natio...

Today in Biofuels Opinion: “She was for it before she was against it. It’s a flip-flop that would make John Kerry proud”

Scott Baker, spokesman for Missouri Republican gubernatorial candidate Kenny Hulshof, on primary opponent Sarah Steelman's change of position on the Missouri ethanol mandate: "She was for it before sh...