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by Richard Lyon
The US media is preaching the gosphel that there will be a way out of the present energy crisis without the pain of belt tightening. The Washington Post takes us on the exotic road to Rio.
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/19/AR2006081900842.html
Brazil's Road to Energy Independence Alternative-Fuel Strategy, Rooted in Ethanol From Sugar Cane, Seen as Model Record oil prices have made the world's energy landscape a darkly foreboding place this year, inhospitable to optimism and celebration. Except in Brazil. It has been something of a banner year here, full of milestones. The government predicts that for the first time in its history, Brazil will achieve energy equilibrium, exporting as much oil as it imports. The production of sugar cane-based ethanol is expected to reach an all-time high. And just three years after the introduction here of flex-fuel vehicles -- cars that run on either ethanol or gasoline -- several major automakers predict that such vehicles will represent 100 percent of their production by the end of the year, eliminating gas-only models.
Sugar cane-based ethanol is one reason why the government predicts that for the first time in its history, Brazil will export as much oil as it imports.
Since President Bush this year emphasized ethanol as one possible solution to U.S. oil dependence, Brazil has become a destination of choice for curious U.S. lawmakers and venture capitalists searching for a crystal ball in which to glimpse America's future. Ethanol is not solely responsible for Brazil's newfound energy independence -- domestic oil exploration has exploded in recent years -- but it has replaced about 40 percent of the country's gasoline consumption, according to Caio Carvalhal, an analyst with Cambridge Energy Research Associates in Rio de Janeiro. There is a lot more to this article and it makes interesting reading. There are certainly many questions about the soundness of this approach, but I think it offers a pretty likely notion about the direction policy is likely to take in the immediate future.
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The Search For A Sugar Daddy | 35 comments (35 topical, 0 editorial, 0 hidden)
The Search For A Sugar Daddy | 35 comments (35 topical, 0 editorial, 0 hidden)
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