September 30, 2003
Iowans face high prices
due to energy shortage
DES MOINES, Iowa--High gasoline prices are currently hurting Iowans at the pump, and winter is on its way. But Iowans may hold the solution to their own energy problems.
"We don't foresee anyone having to go without heat this winter unless there's some sort of catastrophic disaster," Jennifer Moehlmann, an energy data analyst at the Iowa Department of Natural Resources, said. "It looks like we'll have enough, but you'll just have to pay more to get it."
Over the summer, the U.S. population used more gasoline than it could produce. Gasoline prices have since skyrocketed due to high crude oil prices and a tight supply of gasoline production and gasoline demand.
Iowa does not have any of its own crude oil or natural gas resources, not does it have its own refinery. This makes the state dependent on importing the product.
"We haven't built a new refinery since the 1970s because they are extremely expensive, and they are very hard to permit," Moehlmann said. "Nobody wants one in their backyard, let alone the next county."
An oil refinery might not be on Iowa's agenda, but the state is giving Iowans many alternatives and solutions to help deal with the spike in energy prices.
"We encourage energy efficiency, not energy conservation. There is a difference," Moehlmann said. "Energy efficiency is getting more or better by using less."
Iowans can make their homes energy efficient by buying new furnaces, which use less natural gas than older models. Installing programmable themostats also allows furnaces to run on less natural gas or heating fuel.
Iowa's best resource for coping with rising energy prices may come right from its own backyard.
"Ethanol is probably the best motor fuel," Moehlmann said. "Every Iowan has access to it and can use it."
Ethanol is an alcohol made from renewable resources such as corn and wheat. Currently, Iowa motorists choose ethanol-blended fuel more than 50 percent of the time, according to the Iowa Department of Revenue and Finance. Moehlmann said every Iowa pump provides gasoline that is 10 percent ethanol, and it is warranted by every manufacturer for every type of vehicle.
"It is definitely beneficial to farmers because it provides an additional demand for the corn," Moehlmann said.
Iowans are not only using corn to run their cars, some are also using it to heat their homes.
"It's not something we necessarily recommend, it's just one of the alternatices our there," Moehlmann said.
Moehlmann warned that people who do choose to burn corn to heat their homes need to be extremely careful to make sure that they use plain seed corn and not corn that has been chemically treated. Treated seed corn is coated with a chemical, and when it is burned off, it can become toxic and let off mustard gas, she said.
Moehlmann also advised people using propane not to wait until their propane tank gets below 25 percent. By doing this, they can avoid about a $50 on-average charge, she estimated.
The Department of Natural Resources has provided alternatives to help Iowans cope, but for low-income families, the use of ethanol and practice of energy efficiency are not quite enough.
"That is a problem, especially in Iowa where we have such a large population," Moehlmann said.
The state has set up programs to help low-income families deal with high energy costs. The Low Income Home Assistance Program, coordinated by the Department of Human Rights, provides aid to those who qualify based on their incomes. The weatherization program helps low-income families weatherize their homes, through insulating, weather stripping and caulking.
Iowans may have to adopt new energy efficiency habits for now, but Moehlmann is confident that due to past trends, relief may soon be in sight.
"Last winter (prices) were more expensive than they were the winter before, so we're predicting this to continue for sveral years because of the structure of the market," Moehlmann said. "Gasoline prices may be high, but they are starting to come back down."