Fuel Shortage Addressed by Gulf Ethanol
Monday November 26, 11:50 am ET
HOUSTON--(BUSINESS WIRE)--Gulf Ethanol Corporation (OTC:GFET - News):
The Wall Street Journal reported on November 19, 2007 that “the world is approaching a practical limit to the number of barrels of crude oil that can be pumped every day.” Gulf Ethanol is addressing this crisis through the development of technology to efficiently produce fuels from non-food biomass.
With oil trading near $100 per barrel, the Journal concludes that production restrictions could “set the stage for a period of marked energy shortages, high prices and bare-knuckled competition for fuel.” With demand growing at an average rate of 2.5% per year, the world will need nearly 120 million barrels per day by 2030.
“With prices rising and shortages looming, where does American turn for energy security?,” asked JT Cloud, President of Gulf Ethanol. “Studies show that using biomass to produce ethanol can replace as much as 30 million barrels per day of oil equivalent,” he noted. “The energy squeeze is here and will only get worse in years ahead. We believe that our investment in cellulose feed-stocks is the answer America needs now. With many ethanol stocks suffering because of rising corn prices, Gulf Ethanol provides a way to capture the value of solving America’s energy squeeze,” he concluded.
The Journal concluded "that to meet 2010 demand for oil, investment in 2005 would have to have been at least $350 billion. In fact, investment was only $225 billion for that year. As a result, we should expect shortages over several years causing debilitating price spikes."
“The time has arrived for a full-court press to complete the development of cellulosic ethanol as a pressure relief valve from rising oil demand,” stated Mr. Cloud. “We expect to be a leader in this sector providing a substantial contribution to addressing this growing crisis,” he concluded.
About Gulf Ethanol Corporation
Gulf Ethanol is an alternative energy company focused on the development of the cellulosic ethanol industry with a particular emphasis on Texas and the Gulf Coast. For more information please visit our homepage at: www.GulfEthanolCorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Contact:
Gulf Ethanol Corporation, Houston
William Carmichael, 713-461-9229
Fax: 713-461-9230
ir@gulfethanolcorp.com
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Source: Gulf Ethanol Corporation
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