Going Green

Saturday, May 31, 2008

U.S. Senator Cornyn on Ethanol

U.S. Senator John Cornyn has graciously provided the guest posting below.

Hello Panhandle Poet readers…it’s a privilege to guest post here.

I wanted to touch base with you regarding an issue which is very pressing in the Panhandle, ethanol.

When first introduced to the marketplace, it was hoped that ethanol would help revitalize rural America, lower the price we pay at the pump and reduce our dependence on foreign oil.

That’s a worthy goal, yet the government’s focus on ethanol has produced a problem. There have been unintended adverse consequences to our economy from the focus on ethanol production. Chiefly, since February of 2006 the combined price of corn, wheat and soybeans has increased more than 416 percent.

For this reason and many more, I co-sponsored legislation which was introduced recently to freeze the renewable fuel standard corn-based ethanol mandate at current 2008 levels.

In the panhandle, like other places, the effect of ethanol production has been mixed. While a few have benefitted from it, a great many others have suffered.

As more and more farmers grow corn for ethanol production, cattle feeding ration prices have shot sky high. Mandates, along with the high cost of fuel, are squeezing every bit of profit out of cattle feedlots today.

As consumers continue to see rising food and fuel prices, freezing the corn-based ethanol mandate will allow us to re-evaluate the consequences of using food for fuel and determine the best way forward. Texas will remain a leader as we work to diversify our nation’s energy supply to include alternative and renewable sources, but in the meantime Congress must exercise its oversight role to ensure there are no further unintended consequences. A freeze of the mandate will allow time for necessary assessments and reduce increasing grocery, grain and feed prices.

Last year, the Energy Independence and Security Act (EISA) provided the Environmental Protection Agency (EPA) the authority to waive the mandates, or adjust them as necessary to provide relief for consumers.

Last month, I joined Sen. Hutchison and others in sending a letter to EPA Administrator requesting an update on the pending rule-making process for the waiver of all or portions of the ethanol mandate passed by Congress in 2007. The letter also urged the EPA to consider the sharp rise in food prices as they review the mandate.

Freezing the mandate at its current level for one year is not a long term solution, but it is a good start towards finding one.

My heartfelt thanks go to the Senator for addressing this issue and for providing this post.

Also posted on:

Panhandle's Perspective
Panhandle Poetry and Other Thoughts

Friday, May 30, 2008

Record '08 Ag Exports Expected

It seems like we import everything else, but the agricultural sector is exporting at a healthy rate.

RECORD $108.5 BILLION AGRICULTURAL EXPORTS FORECAST FOR 2008

CFTC Investigation Into Oil Futures Trading

It will be interesting to see what they find.

Government discloses U.S. oil market investigation

Growth of Wind Power

A 46% growth in windpower in the U.S. in 2007.

U.S. Continues to Lead the World in Wind Power Growth
DOE Report Shows Rapidly Growing U.S. Wind Power Market

2007 Food Assistance Report From USDA

One of those things that tends to slip by us about the Farm Bill is that the bulk of it isn't about farming.

The Food Assistance Landscape: FY 2007 Annual Report

Wednesday, May 28, 2008

Indonesia Quitting OPEC?

Political issues are a major factor in oil prices.

Indonesia says it is quitting OPEC

Causes Behind the "World Food Crisis"

The article linked below is an interesting look at the "Global Food Crisis" and its causes. One thing to note is that there seems to be more than adequate food available to feed the world. It is an issue of price, not availability. What is driving world food prices up if supply exceeds demand? That is the real question which must be addressed.


Anup Shah, Global Food Crisis 2008, GlobalIssues.org, Created: Tuesday, May 27, 2008

Monday, May 26, 2008

WTO Backlash to U.S. Farm Bill

Agricultural supports are an issue throughout the globe. They have a profound effect on international trade and thus on country budgets. Because of our size, what the U.S. does on farm price supports impacts the globe.

Farm bill attracts criticism at WTO talks

GENEVA (Reuters) - Several countries at the World Trade Organization (WTO) criticized the new U.S. farm bill on Monday for raising farm support when the WTO is trying to reach a deal to cut agricultural subsidies.

"A few of them had...(complete article here).

How is Gasoline Price Set?

The factors that go into setting the price of gasoline at the pump are the subject of this article from the Houson Chronicle.

Cost of oil only start of what's behind price of gasoline

By JOHN PORRETTO and JOHN WILEN
Associated Press

Consider the game of chicken that plays out every day across Pennsylvania State Highway 441. In Marietta, where the road hugs the Susquehanna River, a Rutter's Farm Store gas station stands on one side, a Sheetz gas station on the other.

Kelly Bosley, who manages Rutter's, doesn't even have to look across the highway to know when Sheetz changes its price for a gallon of gas. When Sheetz raises prices, her own pumps are busy. When Sheetz lowers prices, she has not a car in sight.

She calls Rutter's headquarters to report the competition's new price and wait for instructions.
"I call a lot of times and say...(complete article
here).

Friday, May 23, 2008

Senator Cornyn Visits With Bloggers

Yesterday I had the privilege of participating in a conference call with U.S. Senator John Cornyn (R-TX). It was an invitation only call issued to members of his blog roll.

I appreciate the Senator’s interest in keeping the members of his constituency informed through the new medium of bloggers. He closed his call by thanking bloggers for their role in sharing the news of what is happening in the world without the slanted agenda that is often behind the reporting of main-stream media.

The Senator opened the call with remarks about the Supplemental Troop Funding bill which passed the Senate by a 75-25 vote yesterday. He expressed his disappointment that the bill was saddled with an excessive number of non-defense related items that were added by members whose special interests overrode their concern for our troops in Iraq and Afghanistan. They saw the sure passage of the measure as an easy means of adding pork-barrel items with little threat of veto due to the imminent need for the funding.

Also included on the bill was a modernization of the GI Bill-of-rights. He indicated that he believed such modernization was necessary and proper yet did not seem to be fully pleased with some of the provisions in the bill.

The Senator also remarked about the rising cost of gasoline and the impact that it was having on our lifestyles and our economy. It seems that the agenda of many of the Democrats in positions of power is overriding the common sense of developing our own resources in a sensible manner. While recognizing the need for conservation, we must develop domestic oil supplies from proven reserves as well as encourage the construction of additional domestic refining capacity. These items would help alleviate prices through a focus on the supply side of the equation. It will be necessary to expand our domestic supply to help offset the growing international demand from countries such as China whose economy is requiring energy at an increasing rate.

After his opening remarks, the Senator opened the call to questions from participants. The questions ranged from the vote to override the President’s veto of the Farm Bill (voted yes to override), to additional questions about energy (including the impact of the ethanol mandates) and gun-control.

On the question of ethanol, the Senator noted that the mandates were a perfect example of unintended consequences. He especially noted the negative impact to water and land demands and their impact on food prices through competing away acreage from the production of other crops. He also noted the negative impact to livestock and poultry producers through the escalating price of feed. He, along with several other Senators, has requested the EPA to adjust the mandates according to the provision in the original enabling legislation that allows them to do so.

He also noted that the ethanol mandates have caused many to behave illogically. He specifically cited a story released through Bloomberg on Wednesday, about the Postal Service driving ethanol powered vehicles that were 28% less efficient than similar gasoline powered vehicles. They were burning more fuel to travel the same distance.

I appreciate the Senator’s willingness to take the time to visit with the blogging community. I look forward to the next opportunity. If you are interested in joining the Senator Cornyn blogging community, contact Vincent@johncornyn.com.

Also posted on Panhandle Poetry and Other Thoughts.

Thursday, May 22, 2008

Attitude

Our attitude determines our response to what life hands us. In many ways, it drives our behavior.

Last week a good friend related to me the story of a two-day trip calling on various beef producers. The trip was designed to include a variety of operations as an educational venture for an executive in his company that had little knowledge of the beef industry. His story illustrates the difference in attitude of each of the producers and how they are responding to the currently trying times in the beef industry. (Disclaimer: Note that either no names are given, or they are changed to protect the innocent and not-so-innocent!)

The first stop on the tour was to an operation that consisted of a small pre-conditioning facility as well as a cow herd and some stocker cattle. This individual had experienced escalating feed costs and had been “burned” by a couple of his pre-conditioning customers. His view was that ethanol was killing the beef industry. To sum it up, he had a “woe is me, the sky is falling” attitude. All he could see was the downside created by escalating feed costs.

The second stop on the tour was to an operation that specialized in buying light weight calves and taking them through a stocker phase before selling them to someone else for finishing. This individual had tried numerous approaches to add value to his cattle but found that “it doesn’t matter what I do, someone else always gets ahead while I just try to survive.” His attitude was one of powerlessness in the face of market realities.

The third stop was to meet with a veterinarian. He felt that although we were currently in a “down” cycle, it would eventually pass. The focus of the conversation with him quickly turned to new technology. He wanted to know what was in development, when would it be available and whether they had considered looking at a list of other possibilities. His attitude was forward-looking and positive.

The fourth stop was to a large cattle feeding operation. The attitude there could be described as “it’s bad but it will be better and this is what we’re doing to make sure we are still in business when it does.” They had a “hunkered-down-in-the-bunker” mentality but saw an improving future. Their attitude was one of “dodging bullets” until it got better.

The fifth stop was to a small pre-conditioning and stocker operation. The owner had experienced a number of setbacks and recently taken a job in town to supplement his income from livestock. He was at the point of feeling “beat up” and not knowing what the future would hold. He realized that much of his predicament was due to decisions that he had made that cost him dearly. It will be a difficult road to recovery, but he was going to give it his best effort. His attitude was one of having been through a fight but not through fighting yet.

The sixth stop was to a small operation that primarily ran stocker cattle. He saw opportunity everywhere. To him, turmoil signaled opportunity. His attitude was one of innovation, forward-thinking and determination to exploit opportunity.

The seventh and final stop was to a large seed stock operation. They felt that things weren’t great right now but were preparing for the future. They were extremely knowledgeable of the global factors affecting their operation and had plans in place to adapt to every conceivable contingency. Their attitude was positive but cautious and designed for what they saw as an uncertain future.

All-in-all, the attitudes were more positive than would be expected given the difficulties the industry faces as it adjusts to the realities of a bio-fuel economy. The operations listed above will be profoundly affected by changes in the beef industry. Their individual attitudes will affect how well they do.

We become what we think – what our minds dwell upon. We react to our surroundings based on our attitude toward the things that we see, feel and experience. Some of the producers in the scenarios enumerated above will survive and thrive. Others will fail. Based on their attitudes, which ones do you think will be the survivors?

Water Quality Database from USGS

A useful resource from the USGS.

Real-Time Water Quality Information Available Across the Nation

Wednesday, May 21, 2008

DOI Study Shows Untapped Energy Resources

It's good to see a number put on these untapped resources.


Oil and Gas Report Offers Roadmap for Energy Relief

U.S. public lands estimated to hold 31 billion barrels of oil and 231 trillion cubic feet of natural gas

WASHINGTON, D.C. -- With average national gas prices hovering around $4 per gallon, the Department of the Interior’s Bureau of Land Management today released a study that shows vast untapped oil and natural gas resources exist on public lands in the United States. “America has abundant energy resources,” said Assistant Secretary of the Interior for Land and Minerals Management C. Stephen Allred. “However, for a variety of reasons, many of these resources are not available for development. At a time when energy prices have reached record levels and Americans are feeling the impact, we must find ways to...(complete article here).

EU Farm Subsidy Reforms

I find it interesting that the EU is attempting to dismantle farm subsidies at the same time the U.S. is attempting the same. (Does One World Order come to mind?)

EU shake-up on farming subsidies

The EU has unveiled a plan for reform of its Common Agricultural Policy, the rural payments system that costs more than 40bn euros (£32bn) a year.

The proposals are aimed at making farmers more responsive to...(complete article here).

2008 EPA Report on the Environment

The EPA has issued its 2008 Report on the Environment.

EPA's Report on the Environment

EPA’s 2008 Report on the Environment provides the American people with an important resource from which they can better understand trends in the condition of the air, water, and land and related trends in human health and ecological condition in the United States. This report was subjected to a thorough and rigorous independent external peer review and opportunities were also provided for public review and comment. This is the final report.
EPA is announcing the release of the final version of EPA’s 2008 Report on the Environment (ROE). EPA’s ROE uses scientifically sound indicators to address questions that EPA believes to be fundamental to its mission to protect human health and the environment. EPA believes that paying close attention to trends in such indicators serves two key purposes: it provides valuable input to EPA in developing its strategic outlook and priorities, and allows EPA and the public to assess whether the Agency is succeeding in its overall mission. EPA prepared this Report on the Environment (ROE) to accomplish these purposes. (click
here to find links to the report)

New GrainGenes Website from USDA

A new website from the USDA for researchers working with one of the most important food crops on the planet.

GrainGenes Website Speeds Gene Discovery

By Marcia Wood
May 20, 2008

Even though there's much about wheat that's familiar and ordinary, one feature of this ancient crop—its genetic makeup—remains relatively unknown. In fact, the everyday wheat plant doesn't just have one genome; it has several. In all, wheat's genetic makeup is gargantuan and complex. And it isn't...(complete news release here).

Farm Bill Sent to the President

From the U.S. House of Representatives:


Congress Sends Farm Bill to White House

WASHINGTON, DC – This afternoon, Congress sent H.R. 2419, the Food, Conservation and Energy Act of 2008 to President Bush. The bill passed the House of Representatives with a vote of 318-106 and passed the Senate with a vote of 81-15 last week.

“I hope that President Bush will seriously consider the many positive steps this bill takes to improve nutrition programs that are important to so many Americans, particularly during these difficult economic times; to expand and improve conservation programs that help farmers protect the environment; to continue and improve the safety net for farmers; to support fruit and vegetable producers and to encourage renewable energy production from cellulosic sources,” Agriculture Committee Chairman Collin Peterson said.

“We made every effort to work with Administration officials throughout the Farm Bill process, even when they showed no interest in coming to compromise on these important issues,” Chairman Peterson said. “While the President has pledged to veto the bill, I hope that the strong, bipartisan votes in the House and Senate will demonstrate its importance to the American people and lead him to sign it into law.”

The current extension of the 2002 Farm Bill expires on Friday, May 23, 2008.

Tuesday, May 20, 2008

U.S. Percent Foreign Oil Falling

This could spell bad news for efforts to reduce the ethanol mandates.


US begins to break foreign oil ‘addiction’

By Carola Hoyos, Chief Energy Correspondent
Published: May 19 2008 14:28


The US is starting to break its “addiction” to foreign oil as high prices, more efficient cars, and the use of ethanol significantly cut the share of its oil imports for the first time since 1977.

The country’s foreign oil dependency is expected to fall from 60 per cent to 50 per cent in 2015, before rising again slightly to 54 per cent in 2030, according to...(complete article
here).

Monday, May 19, 2008

Hutchison Bill Seeks Ethanol Freeze

Both Senators from Texas have been working to ease the economic burdens of ethanol. Bravo.

Senator promotes bill to freeze ethanol mandate

WASHINGTON (Reuters) - Texas Republican Sen. Kay Bailey Hutchison introduced legislation on Monday to freeze the federal mandate for corn-based ethanol at...(complete article here).

Where is Your Gasoline Dollar Going?

The post linked below is from Michael Williams, Chairman of the Texas Railroad Commission, which regulates oil and gas in Texas. It helps put things in perspective.


Who’s making money from these high gasoline prices?

May 18, 2008

Who’s getting fat from higher crude oil and gasoline prices?

The Saudi, Russian, Venezuelan, etc. nationalized oil companies. They own 75% of the world’s crude oil reserves. Exxon, the veritable villain for high gasoline prices, controls less than 3% of world reserves.

The pump price is comprised of four components. The main one is...(complete post here).

Friday, May 16, 2008

Species Loss

This topic has headlined numerous publications and news services since the release of the report. Many of them are blaming "global warming" for the loss of biodiversity. The globe just hasn't warmed that much. (see this graph) Human activity certainly is a contributing factor to species decline. Loss of habitat, wars and other conflict, hunger, pollution, exploitation of some species (such as fish), and other similar activities contribute to the decline. Sometimes there is a cascading effect with species. If a key species is decimated it may cause other species that are dependent on that species to also decline. There are also species that are filling many of those niches. Two animals that have made tremendous comebacks in my area are coyotes and jackrabbits. For many years during the 1980's and 1990's, jackrabbits became extremely scarce. They were wiped out by disease and by habitat loss. The advent of the Conservation Reserve Program caused their numbers to explode and today they are a nuisance. The coyote population, although abundant during the 1980's and 1990's, declined severely during the early 2000's due to disease. They are very adaptable animals and habitat changes don't generally pose a serious problem for them. Today they have come back and population levels are growing. I just wish they did a better job of controlling the rabbitts. My point is that although human activity is a contributor, there are naturally occurring cycles of disease that periodically decimate populations. Blaming "global warming" is just an attempt to play on the media hype. Since 1880 we have seen an approximately 0.6 degree Fahrenheit rise in the average global temperature. I don't think that is enough to have been the problem. Especially given that the rise is likely part of a cyclical temperature pattern that appears to be entering a cooling phase of the cycle.

An epidemic of extinctions: Decimation of life on earth

Species are dying out at a rate not seen since the demise of the dinosaurs, according to a report published today – and human behaviour is to blame.

Emily Dugan counts the cost

The world's species are declining at a rate "unprecedented since the extinction of the dinosaurs", a census of the animal kingdom has revealed. The Living Planet Index out today shows the devastating impact of humanity as biodiversity has plummeted by almost a third in the 35 years to 2005.

The report, produced by WWF, the Zoological Society of London (ZSL) and the Global Footprint Network, says...(complete article here).

Senator Cornyn Statement on Farm Bill

It still has to cross the President's desk but with enough votes for a veto override, it is likely this Farm Bill will become law.

Cornyn: Final Farm Bill Good For Texas Agriculture Community

Says Texas Farmers & Ranchers Will Benefit from Carefully-Crafted Compromise

Thursday, May 15, 2008WASHINGTON—U.S. Sen. John Cornyn expressed his support today for final Senate passage of The Food and Energy Security Act of 2007, H.R. 2419, more popularly known as the “Farm Bill.” With today’s approval vote by the Senate, and yesterday’s passage of this bill in the House, the legislation will now be sent to the President’s desk.

“Passage of this bill is an important and long-overdue step for Texas farmers and ranchers, providing them a stable policy moving forward. It’s not perfect but it represents a carefully-crafted compromise that will protect Texas agriculture, including family farms, strengthen key nutrition programs, and fight childhood obesity.

“One in every seven Texans can trace their employment to agriculture. In...(complete news release here).

Wednesday, May 14, 2008

Gas Prices and the Law of Supply and Demand

Senator Cornyn continues to push for increasing our domestic oil production.

Cornyn Statement on Gas Prices / Democrats Acknowledge Law of Supply & Demand, Then Vote Against More Supply

Tuesday, May 13, 2008


WASHINGTON—With gas prices in Texas reaching a new record high of $3.54 a gallon, U.S. Sen. John Cornyn, R-Texas, Vice-Chair of the Senate Republican Conference, expressed his disappointment today with the decision by Senate Democrats to help defeat a sweeping domestic energy production bill that would have provided both short and long-term relief at the gas pump.

The Republican-sponsored legislation would dramatically increase...(complete news release here).

Friday, May 9, 2008

Farm Bill Likely to be Vetoed

We need a Farm Bill but I agree that this is probably not the bill that we need. It would be great if we could split this thing up into all of its component parts that are not really farming related and approach each one separately. Then maybe we could get some common sense back into it.

Fact Sheet: Congress' Farm Bill Is Bad for American Taxpayers

Congress Should Propose Real Reform, As President Bush Did, Or Extend Current Law For At Least One Year

Today, Congressional negotiators announced the completion of a farm bill that fails to include much-needed farm program reforms proposed by President Bush and increases spending by nearly $20 billion. At a time of record farm income, Congress chose to further increase farm subsidy rates, require the American taxpayers to subsidize the incomes of married farmers already earning up to $1.5 million per year, and expand government control over farm programs. This bill also adds...(complete news release here).

Wednesday, May 7, 2008

Booming Texas Economy: What to do With the Surplus

Some good economic news is always welcome. My first reaction is "Yeehaw, I can't wait to get my rebate check!" Upon further reflection however, I think this money should be invested in infrastructure. We need to expand the power grid to get the wind-generated electricity from West Texas to the population centers like DFW, Houston and San Antonio. We also would benefit from a pipeline to move ethanol from plants in the Panhandle to the blenders in Corpus Christi and Houston. We could definitely use additional water resource development and the highways seem to always need upgrading (preferably not as tollways). Let's keep the Texas economy booming by investing the anticipated surplus in the infrastructure necessary to handle the growth.

May 7, 2008, 12:20AM

Oil prices help Texas rake in $10.7 billion surplus

Sales tax revenue also aids projected overflow Perry hopes to share with you

By CLAY ROBISON
Copyright 2008 Houston Chronicle Austin Bureau

AUSTIN — The nation may be on the verge of a recession, but the Texas economy is doing well enough for Comptroller Susan Combs to predict Tuesday that the Legislature will have a $10.7 billion surplus when it convenes in January.

Much of the extra money can be attributed to...(complete article here).

Senator Cornyn Continues to Push for Colombia Free Trade Agreement

The Colombia Free Trade Agreement is important to agriculture. It makes no sense (other than arbitrary wielding of power) for Speaker Pelosi to block a vote on this agreement.



Cornyn: Democrats' Obstruction of Colombia Free Trade Agreement is Harming Texas Jobs


Texas, U.S. exports taxed with more than $1 billion in tariffs as House Speaker blocks vote


Wednesday, May 7, 2008



WASHINGTON—In remarks delivered on the Senate floor this morning, U.S. Sen. John Cornyn, Vice Chairman of the Senate Republican Conference, said the recent decision by congressional Democrats to block consideration of the U.S.-Colombia Free Trade Agreement is costing Texas businesses and farmers hundreds of millions of dollars in unnecessary tariffs.



Sen. Cornyn also pressed this issue at...(complete news release here).

Senator Cornyn Presses For Action On Energy Bill

Senator Cornyn continues to push for energy legislation. It would be great to see the Senate debate the merits of this bill. The mood may finally be right for passage. The taxpayers/voters are ready to see some relief.

Cornyn, Senate Republicans Press for Action on Bill to Address High Gas Prices

American Energy Production Act would produce up to 24 billion barrels of new oil if enacted

Wednesday, May 7, 2008

WASHINGTON—U.S. Sen. John Cornyn, R-Texas, reiterated today that Texans cannot afford further delay on addressing high gas costs and voiced support for the effort by Senate Republican Leader Mitch McConnell, R-Ky, to force the Senate to debate new energy legislation. McConnell, backed by Cornyn and other Senate Republicans, introduced the American Energy Production Act, S. 2958, as an amendment today to separate legislation currently before the Senate.

If enacted, the legislation would lead to the estimated production of up...(complete news release here).

Tuesday, May 6, 2008

Texas RRC Commission Chair: Further Thoughts on Global Warming

Texas Railroad Commission Chairman, Michael Williams, continues his post on Global Warming....


Global warming II

May 5, 2008

More and more research is coming in concluding that, like everything else, there’s no free lunch with federal cap and trade legislation.

The federal Energy Information Agency took a look at S. 2191, the Lieberman-Warner bill. In its April report, EIA concluded:

1. Hold on to your pocketbook. Consumer energy bills will...(complete article here).

Senator Cornyn on Energy Relief

Senator Cornyn again makes some very thoughtful statements concerning our energy situation.

Energy: Near-Term Relief, Long-Term Security

Tuesday, May 6, 2008

By: U.S. Sen. John Cornyn

In every area of our state, Texans are struggling to cope with record-high energy prices. The sharp rise in gasoline, particularly, has caused hardship on Texas families, who are now paying an average $1,400 per year more for gas than in 2007.

In Texas, energy expenditures are not optional. Farmers and ranchers must pay higher prices for fuel and fuel-based fertilizer. Most families have to drive—to work or school or the grocery.

Rising prices are caused by several factors, including...(complete article here).

Friday, May 2, 2008

The President's Request for Additional Food Aid Dollars

The Press Release by the Whitehouse about the President's request for an additional $770 million in food aid is an interesting read. Follow the link to the complete article.

Fact Sheet: Leading the Fight Against Hunger

President Bush Requests Additional Global Food Assistance To Ensure Millions Facing Hunger Get The Food They Need

"The American people are generous people and they're compassionate people. We believe in a timeless truth: To whom much is given, much is expected. And so therefore at home we are working to ensure that the neediest among us can cope with the rising food prices. And with the new international funding I'm announcing today, we're sending a clear message to the world: that America will lead the fight against hunger for years to come."
– President George W. Bush, 5/1/08


Today, President Bush called on Congress to provide an additional $770 million to support food aid and development programs. Rising prices have complicated our worldwide food assistance efforts and...(complete article here).

The very last part of the Press Release refers to the impact of biofuels production on the global food commodities pricing. Specifically, it compares the percentage increase in the U.S. to the global increase. The issue is both complex and politically charged. I have been a supporter of President Bush on most issues throughout his tenure. I believe that he has done an admirable job in one of the most difficult positions on the planet through very trying times. Ethanol is one issue with which I am in total disagreement with him. Perhaps it is because of the devastating impact that it has had on livestock production in the U.S. Perhaps it is because I oppose unnecessary Federal mandates when the free market is the best determiner of the allocation of inputs in the economy. Perhaps it is because increased corn production is putting additional pressure on scarce water resources used for irrigation. Perhaps it is just a strong sense that it is the wrong direction in which to focus our efforts toward energy independence. There is a huge amount of capital being poured into biofuels today. Would that money not be better invested in new technology?

I pray that the President will not become tethered to this misguided policy through a sense of "staying-the-course" when a change of course might be more prudent. There are no easy answers to the energy issues that we face. We will make some faltering missteps along the way. Just like a baby learning to walk, or a young person leaving home to face the world on their own, we will make mistakes. We must learn to accept mistakes for what they are -- learning experiences -- then move on to something better.

Texas RRC Chairman on Global Warming

Texas Railroad Commission Chairman, Michael Williams, weighs in on Global Warming in the article below. It is a very interesting perspective....check out his blog here.


Global Warming Part I

May 2, 2008

Climate change is always happening. The earth’s temperature over time gets warmer, then cooler, and then warmer again. Now we’re likely in a warming trend which is a far cry from accepting that human activity is primarily responsible for such catastrophic future consequences as rising sea levels, food shortages, malaria and hurricanes.

That explains why there were several hundred Texas lawyers, bankers and other big company execs huddled together making plans for...(complete article here).

USDA Report on Factor Affecting Food Prices

Food commodity prices are determined by the complex interaction of many economic forces. This report from the USDA provides a good comprehensive look at those factors.

Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices

By Ronald Trostle

Outlook Report No. (WRS-0801) 30 pp, May 2008

World market prices for major food commodities such as grains and vegetable oils have risen sharply to historic highs of more than 60 percent above levels just 2 years ago. Many factors have contributed to the runup in food commodity prices. Some factors reflect trends of slower growth in production and more rapid growth in demand, which have contributed to a tightening of world balances of grains and oilseeds over the last decade. Recent factors that have further tightened world markets include increased global demand for biofuels feedstocks and adverse weather conditions in 2006 and 2007 in some major grain and oilseed producing areas. Other factors that have added to global food commodity price inflation include the declining value of the U.S. dollar, rising energy prices, increasing agricultural costs of production, growing foreign exchange holdings by major food importing countries, and policies adopted recently by some exporting and importing countries to mitigate their own food price inflation. (Access the complete report
here.)

American Energy Production Act is Introduced

Thank you Senator Cornyn for introducing this legislation. Not only is this a way to alleviate some of the pressure on gasoline prices, it is important to our national security.

Cornyn Co-Sponsors New Bill to Reduce Gas Prices, Increase America's Energy Security

American Energy Production Act would increase American oil and gas production, bolster domestic jobs, reduce dependence on foreign energy

Thursday, May 1, 2008

WASHINGTON—U.S. Sen. John Cornyn, R-Texas, today joined several Republican Senate colleagues in introducing legislation aimed at addressing rising gas prices and strengthening America’s energy security. The American Energy Production Act focuses on common sense measures that will increase production of oil and gas here at home. If enacted, this new legislation would lead to the estimated production of up to 24 billion barrels of oil -- enough oil to supply America for 5 years with no foreign imports.

“It has been more than...(complete article here).