President Barack Obama might not have said the word biofuels, ethanol or biodiesel, but the need for clean energy was a part the May 27 White House press conference on the BP oil spill. “More than anything else, this economic and environmental tragedy—and it’s a tragedy—underscores the urgent need for this nation to develop clean, renewable sources of energy,” Obama said. “Doing so will not only reduce threats to our environment, it will create a new, homegrown, American industry that can lead to countless new businesses and new jobs.”
Obama spoke about the government’s involvement in stopping the oil spill in the Gulf of Mexico, which has been spewing oil since an April 20 explosion that killed 11 workers. The press conference was held a day after BP moved forward with the “top kill” procedure, attempting to plug the leak with densely packed mud. “If the well were successfully 'killed,' it is expected that cementing operations would then follow,” BP said in a press release. “The top kill procedure has never before been attempted at these depths and its ultimate success is uncertain.”
Although it’s been talked about for decades, the U.S. is finally getting somewhere on investing in renewable energy and energy efficiency, Obama said. He also mentioned the climate bill, which passed in the House of Representatives last year, and the Senate version that was recently proposed. He called the oil spill a wake-up call to move forward on the legislation, asking for bipartisan cooperation. “It’s time to accelerate the competition with countries like China, who have already realized the future lies in renewable energy,” he said. “And it’s time to seize that future ourselves.”
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As expected, Obama announced that an existing moratorium on drilling will be extended and new permits to drill new deepwater wells will be suspended for six months. In addition, the administration has put the kibosh on planned exploration off the coast of Alaska and pending lease sales in the Gulf of Mexico and off the coast of Virginia. And, drilling will stop at 33 deepwater exploratory wells in the Gulf of Mexico.
“The American people should know that from the moment this disaster began, the federal government has been in charge of the response effort,” Obama said. “As far as I’m concerned, BP is responsible for this horrific disaster, and we will hold them fully accountable on behalf of the United States as well as the people and communities victimized by this tragedy. We will demand that they pay every dime they owe for the damage they’ve done and the painful losses that they’ve caused. And we will continue to take full advantage of the unique technology and expertise they have to help stop this leak.”
Industry associations such as Growth Energy agree wholeheartedly that the oil spill further highlights the importance of clean energy for the U.S. “As President Obama himself said yesterday—this heartbreaking catastrophe in the Gulf of Mexico demonstrates in stark terms why we need to accelerate the use of renewable, domestic alternatives, like ethanol,” said Chris Thorne, director of public affairs.
Brian Jennings, executive vice president of the American Coalition for Ethanol, called the oil spill a painful lesson on the costs of oil exploration. The time has come, he said, for biofuels, and giving consumers more choices at the pump, such as flex-fuel vehicles and more blender pumps. “Building more flexibility into the fuel system will give ethanol a chance to compete with petroleum at the pump, and it will give consumers the fuel choice they deserve,” he said. “Ethanol is readily available, cost-effective, and it’s the cleaner, safer alternative.”
The Renewable Fuels Association responded to the oil spill by sending the president a letter, just two weeks after it happened. Bob Dinneen, president of RFA, urged the president to use the event as a “teaching moment,” drawing Americans’ attention to the country’s addiction to oil. “The juxtaposition of a green American farm field and the copper-toned oil slick spreading across the Gulf is striking,” he said.
RFA advocated a short-term strategy of immediately approving the blending of E12, followed up by the approval of the E15 waiver for all cars, not just newer models. Dinneen also recommended that the U.S. DOE reevaluate the current loan guarantee programs and make them more accessible to next-generation ethanol technologies. “Increasing America’s ability to fuel itself through the use of domestic renewable fuels in and of itself will not solve all our problems,” Dinneen said. “Nor would it have prevented this most recent oil tragedy from occurring. But with sound policies and forward thinking, it can greatly reduce the likelihood of such an event occurring again by reducing demand for oil.”
BP has estimated the cost of the response to the oil spill to-date at $930 million. That includes the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid and federal costs. It’s too early, the company said, to quantify other potential costs and liabilities.
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