So I am not finished with Sel Graham, my expert on ethanol and the awl (that’s oil for you yankees) industry.
It is mindboggling to consider that if Sel Graham was in charge of some things, we might be in better shape on oil policy.
Here we go, from the mouth of Sel, who is just a great guy from Austin,Texas and a great ally in the battle against stupid.
Someone needs to blow the whistle on the Congressman’s false claims.
I have offered a reward for years to anyone who brings proof that an oil producing company is given a federal subsidy. No takers so far.
Domestic oil is always cheaper than foreign oil. According to the DOE, the average price of domestic oil was $94.52 per barrel in 2012, while the average price of imported foreign oil was $101.00 per barrel. Since domestic oil was $6.48 per barrel cheaper than foreign oil, American consumers would have saved $20 billion if domestic oil had replaced foreign oil.
Refineries must pay for a Renewable Identification Number (RIN) for every gallon of ethanol which is not produced below the Renewable Fuel Standard (RFS). The cost of these RIN waivers are passed on to consumers. The Wall Street Journal has called this a “Unicorn Tax,” a tax on something which does not exist. The 2013 RFS demands that 16.55 billion gallons of ethanol equals [42 gallons equals one barrel] 394 million barrels be blended with gasoline at the pump this year. Through August 2013, only 206 million barrels of ethanol had been produced, so only about 309 million barrels of ethanol are expected to be produced this year. Therefore, the projected shortfall in ethanol production is 85 million barrels (3.6 billion gallons). The Energy Information Administration reported that, as of October 30, the RIN price has averaged about 66 cents per gallon in 2013. Thus, ethanol has increased the price of gasoline at the pump about $2.4 billion.
Well, imagine that I, a lowly emergency physician would suggest to the mighty members of Congress that they listen to Seldon Graham–I just know they would check their watches and calenders and decide it was time to move on, because they have no intention of fixing things–life in DC is about the status quo, the current stupidity, not fixing it.
If you think I am lucky to know people like Seldon Graham–you be right.