The market adjusts

Prominent goals of many energy policies these days are conservation, the displacement of oil by nearly anything else, and diminished reliance on oil from members of the Organization of Petroleum Exporting Countries. That statement certainly applies in the US, where subsidies and tax preferences favor nonpetroleum fuels and lawmakers have no qualms about proposing specific limits on oil use, especially oil from OPEC or the Middle East. But the US isn’t alone. In France late last month, Finance, Economy, and Industry Minister Thierry Breton announced a plan to force the use of biofuels, mainly 85-15 ethanol-gasoline mixtures, in a vehicle-fuel market now dominated by diesel. “Oi...

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