Sunday, November 25, 2012

Drought Leads To Industry Introspection

Yahoo News (AP):
At the height of this year's drought, decision-makers at the agribusiness giant Archers Daniels Midland kept an uneasy eye on the reservoir down the hill from their headquarters.
At one point, the water level fell to within 2 inches of the point where the company was in danger of being told for the first time ever that it couldn't draw as much as it wanted. The company uses millions of gallons of water a day to turn corn and soybeans into everything from ethanol and cattle feed to cocoa and a sweetener used in soft drinks and many other foods.
Rain eventually lifted Lake Decatur's level again. But the close call left ADM convinced that, like many Midwestern companies and the towns where they operate, it could no longer take an unrestricted water supply for granted, especially if drought becomes a more regular occurrence due to climate change or competition ramps up among water users.
While companies in the Great Lakes region and other parts of middle America long counted on water being cheap and plentiful, they now realize they must conserve because finding new water sources is difficult and expensive — if it can be done at all.
If there isn't enough water in the Midwest, there just isn't enough water anywhere. Ethanol is one of the biggest water wasters there is.  I'm glad businesses are reconsidering their water use, but it seems like they should have realized that it was an issue long ago. Going forward, fracking will not be feasible in drier regions because of the lack of water.

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