Posts tagged “RAND”
Scale of the Global Oil Market
The RAND corporation recently released a report “Promoting International Energy Security” for the U.S. Air Force that, for the most part, contained the conventional wisdom about oil prices and energy security: in a global marketplace, there is little that one buyer can do to affect prices. The report then went on to state the importance of the US military in maintaining international trade routes and supporting energy infrastructure security around the world. On the whole, it was an anodyne report from a government contractor to its client that generally would have quietly been filed away.
However, the report did have one section that dove directly into a simmering area of contention: the Department of Defense’s investment in a domestic biofuels industry. Both the House and Senate Armed Services Committees have rejected the Department of Defense’s plans to purchase biofuels and to directly invest in domestic biofuels producers. The Senate will likely consider an amendment on the floor to attempt to reinstate the program in July. The specialist media quickly reported the controversial provisions, saying “Renewables no fix for U.S. military fuel woes” (Reuters) and “Alt fuels won’t solve military energy problems” (Greenwire).
The just-issued RAND report Alternative Fuels for Military Applications has generated quite a bit of controversy. However, in my opinion many of the news stories covering the report got the gist of the message wrong. In essence, what has been reported is “RAND Says Biofuels are Bunk.” In fact, many in the renewable energy industry have responded as if they are under attack. Biofuels Digest published comments from several in the renewable fuels industry. Some excerpts from those comments: Will Thurmond, CEO, Emerging Markets Online Is it simply a coincidence that RAND’s study on alternative fuels for the military, the “Clean Coal” Coalition’s advertising campaign, and the State of the Union address were released on the same day? In contrast… Continue»