QUOTE(Eino @ Apr 26 2005, 02:54 PM)
Necessity is the mother of invention. There are a lot of smart people in the US. These smart people need to be encouraged by our government and others to build alternate energy infrastructure on a big scale. The necessity is there.
Last year on the JohnKerry.com forum, we saw several posts about a new alternative energy book by Dr. Galen Suppes, a professor of chemical engineering at the University of Missouri.
This is what the posts said:
Alternative Fuel Technology Being Blocked By National Policy, University Researcher Finds
Crude oil imported to the United States costs more than $100 billion per year. As these reserves become depleted, synthetic alternatives may provide the best opportunities to displace these imports with indigenous products, including ethanol from corn, bio-diesel from vegetable oils, and oil from coal. However, it has been difficult to bring this new alternative fuel technology to the United States. A new study by a University of Missouri-Columbia researcher found that by changing existing roadblocks, such as the U.S. tax structure, it would be possible for the United States to reduce the need for imported crude oil.
“In modern society, a nation must be able to commercialize new technology to maintain high worker productivity and an industrial base that is critical for national security,” said Galen Suppes, MU associate professor of chemical engineering. “When national policies inhibit this commercialization, the future of a country is inevitably compromised.”
In the study, Suppes and MU professor emeritus Truman Storvick examined a synthetic fuel sales price and four potential non-technical barriers: the number of years of petroleum crude oil reserves held by a corporation considering an investment into an alternative fuel facility, the intangible costs associated with investing into a new technology, the U.S. tax structure, and the return on investment. Suppes used an analysis that is similar to analyses used to make investment decisions in the chemical industry.
Suppes found that without the non-technical barriers, a barrel of synthetic fuel would cost $13, including technology costs. However, when the other barriers were added, the price dramatically rose. The return on investment and the existing U.S. tax structure would add $14 each, intangible costs related to foreign competition would cost $38 more, and conflicts of interest in the crude oil industry that might be relied upon to commercialize the technology would add more than $100 per barrel.
Suppes believes changes need to be made. For example, according to Suppes, there are essentially zero taxes made on imported crude oil. By contrast, a barrel of domestic synthetic crude oil would have corporate taxes, personal income taxes, FICA taxes, state income taxes, local sales taxes and other misc. taxes that are applied to income, dividends, and property before workers and investors realize their earnings. Stated in a different way, if a refinery pays $1 for a gallon of synthetic oil produced in the United States, about 50 cents of the purchase price goes to the U.S. state and local governments.
“These major non-technical barriers need to be removed for technology to continue to provide national prosperity in a global community,” Suppes said. “The industrial environment in the United States would be more conducive for the commercialization of new technologies that bring with them quality jobs, increased national research and development activities, and needed tax revenues.” The book was published in late October 2004. Here is the link to the book on Amazon.
Energy Disclosed: Abundant Resources and Unused Technology— A book on energy technology and options available to make our country stronger and the world a better place
By Galen J. Suppes, Ph.D., P.E.
Truman S. Storvick, Ph.D., P.E.The book reads like a college lecture on energy, but without the math or engineering vocabulary. It includes a great review of the history of the discovery and development of our modern energy technology, and recognizes the crucial role of government investment and R&D.
The publisher used a low-end printer, so the print quality is disappointing, but the information in the book is very good. An engineer might not find anything new, but the book is a good tutorial on the subject for non-engineers. What I like best about it is the fact that the authors presented much of the info to their students first, and then used the feedback from the college kids to help improve the presentation.
The last 3 chapters explain exactly how existing technology can be used to produce synthetic diesel and methanol for less than $28 per barrel of oil equivalent... if the USA would change its tax policy, which favors imported oil.
If only our politicians and their staff would read this book...
QUOTE
Too many wars have been fought over oil already. I think things would have been different if Kerry had been elected.
I think Kerry would be doing more than holding a Saudi Prince's hand, but I think the problem is so bad now, that it will take years of dedicated effort before we will see results.
If we move now to develop new diesel engines and hybrids and synthetic fuels, and change our tax laws so American companies who stay in the USA can compete on a level playing field...
Suppes, in his book, challenges the definition of free-trade. Pure capitalism assumes no taxes, no environmental laws, no interference. The USA is NOT a pure capitalist economy (thank God). Yet our stupid, blind, acceptance of "free trade" fails to acknowledge that "off-shore" factories and oil production are not subject to civilized laws and taxes.
So, Suppes asks, why do we allow this definition of "free-trade"? Why not demand that foreign manufactures and energy suppliers "pay their dues" to play in our market?
The Republicans answer is to tell us that the problem is USA labor - it is to expensive, taxes are too high, environmental/safety regulations too restrictive...
So, they take their factories off-shore, and we the people happily "shop at Wal-Mart" and buy "cheap" gasoline from who knows where...
We can do better... Suppes has a few ideas. Read Chapters VIII, IX and X in his book.