Sunday, March 4, 2012
We are pleased to share our support for the Open Fuel Standard Act HR. 1687 with you.
We are strongly supportive of the policy embodied in this bill. We believe placing oil into competition with fuels made from other commodities including natural gas and coal is imperative to reducing its inordinate strategic importance and the geopolitical power it grants the OPEC oil cartel.
OPEC countries control 80% of conventional oil reserves, and yet due to a deliberate policy of constraining production capacity to keep prices higher than they otherwise would be, account for just 36% of global oil supply. While our economy bleeds, key OPEC countries accumulate wealth that allows them to propagate the ideology of radical Islam and foment hatred against our country, our values, and our allies.
At the same time, our country is blessed with a vast array of energy resources that can be converted to transportation fuel. Natural gas in particular is very low cost today. A recent MIT report concluded that the most economical way to use natural gas in vehicles is to convert it to the liquid fuel methanol. This fuel is so economic that illegal fuel blending is rampant in China. Unfortunately, Americans are unable to take advantage of this option because cars sold in the U.S. are not warranted to use the fuel. Ensuring new cars are fuel flexible so drivers can choose the least expensive fuel per mile among a broad array of choices including methanol would cost automakers under $100 dollars a car.
The Open Fuel Standard, in a fuel and technology neutral manner, ensures that most new cars will be open to fuel competition, so the market can determine the optimal fuel blend on any given day depending on comparative pricing. Further, this policy expends no tax dollars.
We understand that a companion bill S. 1603 was introduced by Senators Cantwell and Lugar in the Senate and we strongly urge you to consider adding your support as a co-sponsor.