Wind, Cattle and Politics

This is one of my favorite photographs of all time.  I have used it before, although it has been a few years.  It was taken near Vega, Texas, at a wind farm.

I suppose it is a favorite because it shows energy and beef side-by-side on the Texas Plains not far from where I was raised.  Texas has long been known for both, although normally it is oil and gas that comes to mind.  These generators sit on the edge of the Canadian River breaks.  If you could look across the river to the north you would see plenty of the oil and gas production.

It is also a favorite because it shows the two enterprises as being complementary.  The land is being used in a sustainable way for cattle grazing on native pasture while the ever-present wind generates electricity that is sent through the power grid to cities far down state.  The last I checked, Texas still leads the nation in wind-generated power.

Those generators are becoming a problem though.  As time passes, that problem will become even bigger.  What do you do with one when it is broken and no longer can be fixed?  There are quite a few beginning to accumulate around the world.  The proponents of wind energy don't acknowledge the problems with it because it isn't in their backyard -- it's in "flyover" country. 

Food production, energy production, mining/extracting of minerals -- all, for the most part, are in "flyover" country.  The people driving for changes in how these things are done are located on the coasts in their elite enclaves of energy-sucking mansions, dining at high-end restaurants and flying around the world in their private jets.  They dictate policy through their manipulation of the political machinery (which includes the press) but don't have to live with the consequences.  They just enjoy the fruits.

There is always room for improvement, but out here in the country we get a lot of things right.  The wind generators in the photo wouldn't exist without large subsidies extracted from the taxpayers of this nation and passed on to already wealthy individuals who invest in the wind-capturing technology.  What we got right is that it didn't really disrupt the production of protein too much as evidenced by the cattle grazing beneath the generators and it brought a portion of those tax dollars out into the countryside in the form of jobs.

I really didn't intend to bring the political aspects into this brief commentary this morning, but it is a fact of life that the "fat cats" in Washington tend to find ways to make life difficult for the rest of us.  It's all about power and money -- it doesn't matter which political party, they're all essentially the same.

Energy Independence Days

U.S. Senator John Cornyn has declared war on our dependence on foreign oil. He has created a special emphasis on his website called “Energy Independence Days” in which there will be a series of posts including videos from Senator Cornyn on the subject of how we might achieve our Energy Independence.

I am thankful that the Senator has taken the best interests of the American people to heart and created this opportunity for the people of this state and nation to have input, as he helps through his leadership, to set our lawmakers on course to address this critical issue. I pray that solutions can be developed through the private and public initiatives that are a hallmark of this great nation. I am humbled to have the opportunity to provide a guest post to the Senator’s website. Thank you Senator Cornyn for all that you do for our state and our country.

Chance Conversations on Energy

Often while traveling I run into other salesmen that I have met through the years. It is interesting how we often end up in the same places. The cattle industry is worldwide and yet fairly small in the number of people that are involved in it. Those companies that serve the cattle industry are few. Anywhere that cattle are concentrated, you tend to run into the same people. The advantage is that you occasionally have company for dinner that otherwise would be eaten alone.

Tonight I was visiting with an acquaintance from Colorado who happened to be eating in the same place that I was. We talked about all of the wind generation fields that are going in throughout the plains. For both of us it seemed that no matter where we travelled, we saw wind generators being installed. We both agreed that it was a good thing. We also were both in agreement that there are a lot of ethanol plants being built and they are not necessarily a good thing.

I think biofuel plants should be limited to converting human waste and garbage to fuel. They should not be converting plant mass to fuel. Ethanol production is a losing proposition for the taxpayers of this country. Converting crop acres to corn production that will be used for ethanol only drives up food prices. It is not an efficient use of our land resources. Ethanol production continues to be subsidized. It should not be. Spend the subsidies to develop technologies for converting garbage and human waste to fuel. Spend the subsidies to develop efficient solar and wind technologies. Lets develop nuclear fuel generation plants and fuel cells. Quit wasting our tax money on ethanol. It doesn't really help us.

Capture the Wind

There's another Wind Farm coming to the Panhandle...

Huge wind farm in works

World's largest facility be built in Briscoe County

By Kevin Welchmailto:Welchkevin.welch@amarillo.com

Two big players raised the stakes in the wind power game Friday.

Shell WindEnergy and Luminant, a subsidiary of TXU, announced an agreement to build 3,000 megawatts of wind generation in Briscoe County. The plan would top the world's largest wind farm near Abilene, which produces 735 megawatts.

A megawatt can power about 250 average homes.

The planners think the reception has been very positive.

"People love it in Briscoe County," said Jerry Leatherman, managing director of ACE Renewables, which has contracted with Shell to help develop the project. "It is typical of rural areas of the Panhandle where the water table has declined (reducing irrigation) and other things have drawn people away. It's been shrinking."

The impact could be substantial.

"You've got 900 square miles and 1,700 people," said Tim O'Leary, communications manager of Shell. "There will be an economic impact and demand on infrastructure. There will be an economic impact for decades."

Employment will increase, both for construction and during normal operations.
"It'll give a big bump during construction," said Mark Wilby, senior business development manager for Shell. "And after construction, on a project of 85 to 90 turbines, usually there are two to three full-time jobs and another four or five for maintenance. Conceivably this could be 1,500 turbines is one estimate."

The power from the project would significantly boost the wind energy Luminant's parent company, TXU, can deliver to customers. It currently buys 705 megawatts and has a contract to start buying another 209 megawatts.

"We're the largest purchaser of wind power in the state now," said Tom Kleckner, Luminant spokesman. "So actual ownership of generation is the next logical step."

The announcement came after a lot of action on the ground trying to catch the wind.
"It's been very interesting leasing rights," Leatherman said. "There has been a great deal of competition. I'd say eight different developers have been in here and left. It's been a challenge."
Nobody wanted to talk about project costs, number of acres leased or exact locations. However, the plan is to build the wind farm on top of the Caprock in the southeast sector of the county.
"It's not only on the rim or edge of the Cap, the wind is very good as you approach the rim for several miles," Leatherman said.

Everyone involved is waiting for the Texas Public Utilities Commission to issue a final order that will start the construction of transmission lines to get wind power to the metropolitan areas in the eastern part of the state, so time lines are not firm.

"PUC Chairman (Paul) Hudson has said he anticipates transmission could be completed by 2011/2012," Wilby said.

While other developers have proposed large projects - Boone Pickens touts a 4,000 megawatt project and Airtricity and partners propose a 2,235 megawatt project - the Shell/Luminant plan is different.

The twist is to use the turbines to also pump air into underground formations to compress it. The compressed air is then released to turn generators, producing power when the wind is not blowing or demand is too great for the wind to keep up with. The geologic situation below the surface looks promising.

"One of two formations have to be present - a salt dome or depleted aquifers, either gas or water," Wilby said. "The Panhandle is an ideal place for that."

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Everywhere that I drive I see wind generators -- either generating electricity or parts on a truck headed down the highway. This part of the world is fast becoming the Wind Power Generation Capitol of the World.

Ice Cream and Ethanol

OK ice cream lovers. It's time to rebel!!!


Ice-cream makers frozen out as corn price rises

From The Times
July 16, 2007

Suzy Jagger and Carl Mortished

What’s the connection between ethanol, the biofuel produced from corn, and a cherry vanilla ice-cream?
Answer: the first is responsible for pushing up the price of the other.

This month, the price of milk in the United States surged to a near-record in part because of the increasing costs of feeding a dairy herd. The corn feed used to feed cattle has almost doubled in price in a year as demand has grown for the grain to produce ethanol.

Christina Seid, whose family have been making ice-cream at the Chinatown Ice Cream Factory for 28 years, said yesterday that she expected to have to raise her prices, along with all competitors in the short term. “We are holding out as long as we can, but prices will rise,” Ms Seid said.

Amy Green’s Ivanna Cone ice-cream emporium in Lincoln, Nebraska, has already raised its prices for a small cone to $3.50 before tax, up from $2.95 a few months ago. She also estimates that she is paying $150 more a week for the butterfat that she uses in her ice-cream.

The squeeze on ice-cream makers, chocolate manufacturers and pizza companies – all of whom use dairy produce as a raw material – is set to tighten as the price of a gallon of milk in the US – up 55 per cent in the past 12 months in some American states – is now the same as a gallon of petrol, with dairy prices accelerating faster than the cost of fuel.

Prices for dairy products have also risen because of increasing demand from China and the Middle East along with the drought in Australia, reduced subsidies in the European Union and the rocketing cost of corn.

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I don't know about you, but I think that when the ethanol boondoggle starts affecting the price of ice cream they've gone too far!!

Energy vs. Food

This is a glimpse of the future...



China blocks food for biofuel

By George Reynolds



12/06/2007 - Chinese biofuel producers should only use non-food crops, the government said yesterday, following fears of shortages and further price rises that could occur as demand for greener energy increases.Biofuels are seen as a potential alternative to fossil fuels, because they can be manufactured from sustainable crops including corn, wheat, sugar, cassava, sweet sorghum, and oilseeds.The moratorium will ease manufacturing concerns about competing for ingredients being used to make ethanol and biodiesel. Corn is currently accounts for 90 per cent of the inputs in Chinese ethanol manufacture, and has sharply risen in price over the past few years due to subsidies and high crude oil prices.Moreover, last year's 43 per cent rise in the price of pork, China's principal meat, due to increasing feed costs, has pushed officials to act."Food-based ethanol fuel will not be the direction for China," said Xu Dingming, an official of the National Energy Leading Group, at a energy seminar held this week, according to the Xinhua News Agency.Biofuel manufacturers will now need to source non-food crops, such as cassava and sweet sorghum used ....(follow the link for complete article)



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Ethanol and biodiesel will have a dramatic impact on food prices in this country over the next few years. I have posted some of my thoughts on this in the past. Fuel independence may create food dependence if we continue to focus those efforts on biofuels. Are we as a country willing to become dependent on South America for our grains? That may not be an issue if Brazil continues with its efforts to produce ethanol. We are heading for a global food crisis. U.S. citizens will pay a higher percentage of their disposable income for food than ever in the history of this country. What will the impact be on countries that suffer from chronic food shortages today?

There have been numerous issues to criticize the current administration and Congress over. I think the subsidies to encourage biofuels may be the biggest one. The money spent subsidizing ethanol would be better spent on nuclear, wind, or solar power generation. Biofuel money should be restricted to garbage and human waste. Subsidizing the use of crops for biofuels is an error in judgment that will have huge impact on our food supplies in a very short time. That impact is in fact already occurring although there is a significant lag before it will be felt in the consumer marketplace. The sad thing is, it will not lower gasoline prices and may contribute to their rise due to legislating blends both at the Federal and State levels. This, at the same time that it is raising food prices.

The first impact that will be felt is in the cost of proteins. This includes all meats and beans. The impact to grain-based foods will be more slowly realized. This seems backward at first glance. However, due to the small impact of "in-the-field" prices for grains on the cost of a finished loaf of bread, the impact will be minimal in spite of significant grain price increases. However, the cost of feeding livestock has increased tremendously based on the speculative impact of corn conversion to ethanol. There has also been secondary impact on the price of feed fat which is a rendered energy source similar to lard that is a component of many animal feeds -- such as pet foods. This is because of the utilization of tallow for biodiesel production. Just get ready. The price of your hamburger is about to double. It will only take about 6 -9 months for the initial impact to begin to filter through the production cycle.

The potential impact of significantly higher food prices could quickly spread to the housing market. Families will have less disposable income. Foreclosures may become as common as they were in the 80's at the height of the S&L crisis. Prices will plummet. The housing bubble will burst. The impact will then ripple through the financial sectors potentially causing bank failures.

OK. I guess that's a bit of a gloom-and-doom view, but it is also realistic. Cheap and abundant food has been a significant component of the economic success of this country. Current alternative energy policies are threatening our future food supply. Congress and the President need to think again about how we achieve energy independence.

More on Ethanol

This article from CattleNetwork.com is interesting (at least to those of us who seem to be obsessed with Ethanol)....

The Efficiency of Ethanol Production

The efficiency of ethanol productionhas long been questioned. Critics would argue that the industry could not survive without government subsidies and that it takes more energy to produce a unit of ethanol than the energy derived from the ethanol. There might have been some merit to these arguments, given the technology that existed at the time, both in terms of agronomic practices and the processes for turning feedstocks into fuel ethanol.
However, a study published in July 2006 by the University of Minnesota concluded that there is a net energy gain with the production of ethanol from corn. Researchers tracked the amount of energy used to grow corn and to turn it into ethanol, and they factored in the cost of transporting the raw product to the plant.
Researchers also factored in the cost of how much fertilizer and pesticides were required to grow the corn, and the greenhouse gases, nitrogen, phosphorus, and pesticide pollutants that were released into the environment. They concluded that corn-based ethanol yielded 25% more energy than was expended in producing that unit of ethanol.
The cost of producing ethanol varies with the feedstock being used and its availability. In the U.S. and Canada, corn is the most widely used feedstock because it is generally the cheapest, both in terms of the cost of feedstock and the processing costs. In Brazil, sugar cane is the most cost effective feedstock, despite the relatively low ethanol conversion factor. The low cost of sugar cane and the associated processing costs make Brazil’s ethanol producers very competitive in the world ethanol market.
Processing costs, for corn-based ethanol production, depend on the type of milling process. For very large plants, the economics of production favour the wet milling process, despite a lower conversion rate than the dry milling process and higher processing costs per gallon.
The value of by-products derived from wet milling more than offsets the lower conversion rate and higher processing costs, resulting in the lower cost per gallon of ethanol. The by-products of the wet milling process are normally corn oil, corn gluten meal, corn gluten feed, and carbon dioxide, but some larger plants have developed the ability to also produce vitamins, food and feed additives from the same feedstock, by-products which help to reduce the cost per gallon of ethanol.
Dry milling accounts for most of the ethanol produced in the U.S., and the main by-products of this process are distillers dried grain with soluble (DDGS), condensed syrup, and carbon dioxide. DDGS is a high-protein feed ingredient, but it is low in amino acids, including lysine.
The low levels of lysine limit the usefulness of DDGS in hog and poultry rations. However, the abundance of DDGS in the U.S Midwest, where ethanol plants are concentrated, allows nutritionists to incorporate this relatively low cost feed ingredient into feed rations, provided that the customers for the DDGS are within a certain radius of the ethanol plants.
Currently, the U.S. ethanol industry appears to be less dependent on government subsidies than in the past. That move to self-sufficiency can be attributed to several factors, including record high prices for crude oil. High crude oil prices and the market price of ethanol have made its production much more profitable. In fact, ethanol production might be profitable enough to allow producers to operate without the US$0.50/gal subsidy they currently receive from the U.S. government.

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Obviously the profitability of ethanol is dependent on the relative price of gasoline. The subsidy for production probably is just an offset against reduced farm subsidy payments due to increased corn prices in the market so it isn't a real loss to the taxpayer, however, I'd like to see our "all wise and powerful government" end this subsidy for ethanol and let the market take its course.

Robots and Ethanol

I thought this to be an interesting article on Ethanol. The ARS is searching for ways to make ethanol production more efficient. They need to.....


Robot, Yeast Combo May Mean More Ethanol

Scientists with the Agricultural Research Service (ARS) in Peoria, Ill., are excited about the latest member to join their team: a one-armed robot. They expect it to speed studies aimed at harnessing the power of proteins for industrial uses, such as making fuel ethanol from fibrous corn stover. The robot is the centerpiece of an automated system called the "plasmid-based functional proteomics work cell." According to Stephen Hughes, a molecular biologist with the ARS National Center for Agricultural Utilization Research in Peoria, the system is the first of its kind to fully automate several procedures that have traditionally been carried out by hand--human hand, that is. A short list of functions includes extracting genetic material from the cells of plants, microbes and other organisms; making DNA copies of genes; inserting the copies into Escherichia coli; culturing these bacteria so that the copies can be sequenced and their proteins identified; and inserting desirable genes into yeasts used to make ethanol. Thanks to the fast, precise movements of its mechanized arm, the robotic system can carry out such tasks hundreds--or even thousands--of times faster than a human could, notes Hughes. He and colleagues in the ARS center's Bioproducts and Biocatalysis Research Unit codeveloped the system with a team from Hudson Control Group of Springfield, N.J., starting in 2004. Of particular interest is using the robotic system to genetically modify new strains of Saccharomyces yeast that can metabolize sugars locked up within corn fiber--something these microbial workhorses have so far failed to do. Currently, only the starch from corn and other grain crops is being converted commercially into the sugars from which ethanol is derived. With the Saccharomyces yeasts now used, this equates to nearly three gallons of ethanol from a bushel of corn. Using new strains capable of breaking down corn fiber could potentially squeeze 10 percent more ethanol from the grain, Hughes and colleagues estimate. Read more about this and other ARS bioenergy research in the April 2007 issue of Agricultural Research magazine, available online at: http://www.ars.usda.gov/is/AR/archive/apr07/robot0407.htm ARS is the U.S. Department of Agriculture's chief scientific research agency.

Source: Jan Suszkiw, ARS News Service

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I think there is definitely a place for ethanol in the alternative fuels debate. I would just like to see it made from recycling scrap organics, or from fibrous plant residues that can be harvested from marginally productive land rather than from corn. Until the switch occurs, the negative impact to food prices, and the inefficient ethanol production methods will cost the consumers more than the benefits.

Alternative Fuels - Biodiesel

This article might be of interest to you who are interested in alternative fuel sources:


Tyson, ConocoPhillips Plan Animal Fat Fuel Venture

Oil giant ConocoPhillips (COP) and meat-processor Tyson Foods Inc. (TSN) said Monday they will join forces to produce biodiesel fuel using beef, pork and chicken fat.

Production is expected to begin late this year. Tyson said it will make capital improvements in coming months to begin pre-processing animal fat from some of its rendering facilities. ConocoPhillilps said it will make capital expenditures to produce the biofuel at several of its refineries.

Output could reach 175 million gallons annually, the companies said in a news release.

Tyson projected that the venture eventually could add 4 cents to 16 cents to per-share earnings, or $14.2 million to $56.4 million based on current diluted shares outstanding.

Biofuels are becoming increasingly popular, as traditional petroleum-based fuel costs rise and climate change becomes a growing concern.

The nation's largest pork processor, Smithfield Foods Inc. (SFD) has been producing a biodiesel from animal fat at a small plant in Cleburne, Texas, for the past two years. When announced, that facility was to be designed to use vegetable oil as well as animal fat....

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This may not sit too well with the animal rights crowds, but I think it's an outstanding idea. This way I can eat my beef and drive it too!

Some New Links Added

Since I find myself repeatedly writing about climate change, alternative energy sources, ethanol, the weather, etc. I've added a few Links in my Links list. There's some interesting reading there if you have time to wade through it all.

Ethanol -- Why???

The traffic volume on the highways throughout the Panhandle seems to be increasing. That's a good sign. It is a sign of a thriving economy.

I have been seeing a lot of trucks on the highways carrying what appears to be capital equipment and machinery. I have recently seen parts for the giant wind generators, many large storage tanks, motors, fan assemblies, valves, etc. Almost all of the pieces destined to either wind generator fields or to ethanol plants.

I really struggle with the ethanol plants -- especially in corn growing areas that rely on the Ogallala Aquifer for sufficient water to grow the corn. Think for a minute about what it takes to grow corn in the Texas Panhandle where our rainfall is approximately 20 inches per year, or less. The fields are prepared by tractors fueled by diesel, the primary nitrogen fertilizer (anhydrous ammonia) requires huge amounts of natural gas to manufacture, the water is pumped from an aquifer that lies several hundred feet below the surface and therefore requires energy to lift the water. Usually the irrigation pumps are powered by electricity, the bulk of which continues to be generated at plants fueled by natural gas. Once the corn is ready for harvest, the combines that shell it, and the trucks that take it to the ethanol plants are fueled by diesel. I have heard it said that we spend approximately $0.98 worth of fossil fuel to produce $1.00 worth of ethanol. It just doesn't make sense to me.

The one area of benefit that I see, is that the ethanol plants are a source of jobs in many smaller rural communities. I think that's great in the short run, but what will happen in the longer term? Will those jobs still be there in 10 years? Or, will they dry up with the demise of ethanol.

One argument says that this is a transitional time for ethanol. Eventually we will shift to a cellulosic basis for production rather than using corn. I think that's great, but will that reduce the amount of fossil fuel used to produce it? I doubt it.

Another problem with using corn, or any other crop for that matter, for making ethanol is that it is causing a shift in acreage from other crops to corn production. This does several things. 1) It increases the amount of fertilizer used which adds to potential runoff issues. 2) Corn demands a much larger amount of water for production than most other crops raised on the High Plains, further stressing the already significantly depleted water supply. 3) The acreage shift to corn from other crops drives up the price of all crop-based commodities. This may be good in the short-run for the farmers. But, it will eventually be reflected in one of two ways. Either our food and fiber costs will increase at the consumer level, or we will end up purchasing more from other countries.

If our strategy in developing ethanol as an alternative fuel is to decrease our reliance on other countries, it won't work. It will just shift the reliance from a minuscule percentage of our fuel demands to a significant percentage of our food and fiber demands.

Increasing crop prices may have the short-term positive effect of increasing farm income from the marketplace to offset government subsidies. This would be a positive benefit to the taxpayers of the nation if the Congress would just not spend that money on something else. We all know how that will turn out.

Currently there are significant government subsidies to incent the creation of ethanol capacity in our country. Some of the subsidies are direct and some are related to the investment of funds in alternative energy production in lieu of taxing those funds derived from other means. Either way, it is dollars out of the taxpayers pocket. I would much rather see that money spent on projects such as the windmill generators, or geothermal, or nuclear energy. The problem is, ethanol plants seem to generate more votes because of the "pork-barrel" nature of the projects.

It would be nice if Congress would vote for sensible legislation rather than their behavior being totally dictated by what will get them the most votes, or line their pockets the quickest. I think we need to fire them all and start over.