Ethanol Use Heats Up

Ethanol usage dramatically increased in the United States last year, from 4.9 billion gallons in 2006 to 6.5 billion in 2007, accounting for 23.7% of all corn production and driving up the price of the crop. We've written before about ethanol's questionable viability as an alternative fuel, but those concerns and the impact on food prices haven’t stopped people from filling up with E85.

Due to the food crisis engulfing developing countries, ethanol has finally begun to receive the increased scrutiny it deserves. Europe, for instance, saw very little increase in its ethanol use.

And for those who think they're saving money at the pump by using E85, check out AAA's Fuel Gauge Report. Because ethanol burns less efficiently, a gallon of E85 will not cost you $3.19, as advertised, but rather is equivalent to $4.20 per gallon — 33 cents more than a gallon of gas — when you factor in the lower efficiency.

Comments

[Ralph]

Regarding ethanol as a viable alternative fuel source, ethanol has "never worked" from an economic standpoint. The politicians embraced it so they could pander to the farmers that vote in the agricultural states. The farm lobby is extremely powerful due to the huge political campaign contributions that they make to the politicians. Farmers know that ethanol is good for their pocketbook but bad for the US taxpayer. But, in fairness to the farmer, if the politicians continue to heavily subsidize ethanol to the tune of 45-50 cents per gallon, farmers certainly aren't about to turn down this free money being thrown at them by Washington. McCain is one of the few politicians to call for an end to the fiscal insanity concerning ethanol. I will have to say that even though I am not a big fan of McCain's. But, I will have to give him credit on this one. McCain is correct. Washington should be giving substantial tax rebates to consumers who will buy hybrids, and give economic and tax incentives to those companies that develop "economicly viable" alternative energy sources and then we will be able to bring the troops home and thumb our nose at the Middle Eastern countries that we have allowed ourselves to become heavily dependent on. Until we have some politicians in Washington with the guts to do what is best for the country rather than what is best for their political careers, the United States is going to continue it's slide over the next decade from being the dominant world power after World War II both economically and militarily. Vote these politicians that are permanent fixtures in Washington (and Springfield, Il.) out of office that look out only for themselves and their careers. By the way, I own a farm and am one of those taking government subsidies. You probably are thinking that I am a bad person for doing so. However, unlike the rest of the farm community, I am one of a handful of truthful and candid "welfare kings" that won't lie and who will admit to taking government money as long as your politicians in Washington are stupid enough to keep sending it to us.

mccain hasn't done a kerry and "flip flop," but he now says ethanol is a way to get independence from oil. before he was saying the worse things one could be say. and because iowa is very important in the primaries, most candidates must say good things about it. one doesn't have to win iowa, but one must do well. and sen. harkin has been in the senate for a very long time and gets many favors.

and even ethanol isn't the solution since they can't make enough of it anyway to be oil-free. and a per gallon/mile/cent analysis shows that it isn't worth it (the aaa reports shows it)and it actually does more harm to the enviroment. the carbon footprint is higher and the polar ice caps will melt faster.

i am a GM person for the most part. but i am critical of them since getting "flexfuel" cars helps them achive some gov't goal in hybrids/low-fuel vehicles. so rather than get cars that will be better than the prius, they do flex fuel cars.

[Paul]

If this were the 1950s,we would have a large farm infrastructure in place to cater to the food service AND the ethanol market,however,farming in the 70s,80s,and 90s has gone straight downhill leaving few to produce for everyone.Until more farmers start up and new growing fields are "found",I think we should make up our minds.....food,or fuel...and stick to the decision.

[J]

Independent from oil? Why is it called E85 then? It still has 15% gas in it.

The use has increased? Not so surprised after watching INdy 500 yesterday.