Energy Independence Myths and Solutions

Everyone expresses concern about “energy independence.” We are awash in pronouncements about the
need for more solar, wind, clean coal and nuclear power. But no amount of new electrical power would
make us any more independent. The United States already gets 100% of our electricity from our domestically
produced coal, natural gas, nuclear, hydroelectric, wind and solar. We are already energy independent when
it comes to generating electricity. The problem is not energy independence – it’s oil independence.
Since virtually every car, truck, bus, train, ship and plane runs on oil, expansion of nuclear, solar, wind, etc.
will have no impact on oil independence. These promising technologies may replace coal for electricity
generation, but will not decrease oil demand.
Dollar amount in billions
0 100 200 300 400 500 600 other

Oil is also oil

COAL
U.S. Expenditures on coal:
the largest 21%
$30 billion per year. 42%
contributor
U.S. Expenditures on oil: to U.S. CO2 37%
oil $600 billion per year. emissions. coal

Source: U.S. Energy Information Administration

True energy independence requires that oil’s monopoly over trans-
portation fuel be broken. Since most cars sold in America today
can run only on gasoline, the monopoly holds our transportation
hostage. Only fuel choice via flex fuel can break that monopoly.
Since cars consume approximately half of the 20 million barrels
of oil we consume daily, this would have the greatest impact for
the least cost.
An Open Fuel Standard ensuring that every car sold in America
is flex fuel capable is the cheapest and most-effective way to
break oil’s monopoly over transportation fuel, strengthening
America’s security and economy.
* Flex fuel technology exists and can be implemented swiftly.
Flex fuel vehicles have comprised the majority of new cars in Brazil
for years.
* Flex fuel technology is cheap.
This technology costs less than $100 per vehicle.
* Flex fuel technology truly is flexible.
Flex fuel enables cars to run on any blend of gasoline and alcohol,
such as ethanol or methanol. Such fuels can be made economically
from a variety of non-petroleum energy sources, including coal,
natural gas, biomass, waste, corn and sugar.

Flex fuel is already here.

Many cars sold in America are already flex
fuel capable, including the No. 1 selling
Ford F-150. The following new cars come
flex fuel capable: Chevrolet Impala, Chev-
rolet Uplander, Chrysler Sebring, Chrysler
Town & Country, Dodge Avenger, Ford
Crown Victoria FFV, GMC Yukon, Mercury
Grand Marquis FFV, Nissan Armada,
Nissan Titan, Mercedes C300 and Bentley.
The challenge with flex fuel is the difficulty in locating a station that pumps it. Of America’s 121,000 gas stations,
only about 1,275 stations in 41 states currently offer E85.
That will change when all cars come flex fuel capable. At 10-12 million new cars per year in the U.S., it will
take only about three years for flex fuel to reach the 30 million cars needed to justify most gas stations to
invest in flex fuel pumps. With American leadership, the Open Fuel Standard would become a global standard,
forcing gasoline to compete against a variety of alternative fuels worldwide. These alcohol fuels can be
made domestically, as well as in Africa, Latin America and South Asia, thereby also enabling millions
of people to rise out of poverty.

The Danger of the OPEC Monopoly

Drilling and efficiency won’t do the trick.
Public debate on this issue has been domi-
nated by calls to “drill more” (Republicans)
or “use less” (Democrats). The reality is
that both methods perpetuate petroleum’s
monopoly over transportation fuel, doing
nothing to weaken OPEC’s stranglehold.
Members of the oil cartel OPEC sit on
78% of world oil reserves, but account for
only 40% of global oil production. In 1973,
just before the Arab Oil Embargo, OPEC
produced 30 million barrels per day. Today,
with global oil demand nearly doubled,
OPEC produces an average of 29 million
barrels per day – one million barrels less
than in 1973!
OPEC’s strategy of deliberately constraining
supply effectively manipulates oil prices
in order to maximize the revenue and
power of its member regimes while
blocking competition from alternative
energy sources.
OPEC policies have resulted in:
• exacerbating our trade deficit
• f unding terror
• strengthening anti-western dictators
and despots who desire our destruction
While electric cars present another strategic
component of oil independence, large-scale
market penetration requires a much longer
time line than flex fuel vehicles. Electric
cars and liquid fuel flexibility are comple-
mentary rather than competing. A flex fuel,
plug-in hybrid would enable the broadest
competition among transportation fuels.
By stretching each gallon of gasoline with For additional
alcohol fuels and electricity, such a vehicle information,
would achieve hundreds of miles driven
for each gallon of gasoline used.
please contact:
It is estimated that $100 billion of the U.S. * Anne Korin
defense budget – one dollar per gallon – anne@iags.org
is oil related. Our military protects the oil
states, protects oil routes, and fights radical * Gal Luft
Islam, which is itself funded by oil money. luft@iags.org
By implementing the Open Fuel Standard, * Marc Goldman
the U.S. can engage in global affairs from a mg@hsprings.com
position of strength – without the dangers
and costs associated with maintaining
access to oil lanes. It is a matter of national
security, without which we have no
other freedoms.
What we can do about it
Each of us can insist to our congressmen
and senators that they immediately pass
legislation to require that every car sold
in America must be flex fuel capable.