Furthermore, ther are some developments on the horizon that could actually make ethanol look pretty good. For example, genetically engineered plants that produce an enzyme at the end of their lifecycle that begins the process of breaking down the plant using sunlight as an energy source, in essence making the plants an even better solar collector.
I’ve been down on ethanol for a long time because the pro-ethanol industry made grandiose claims to hide the fact that they were basically using it to get farm subsidies. But reality is starting to catch up to the claims, and there may be something to this.
And I’d like to address the comment above to the effect that whenever Bush says something, a flunky comes out a couple of days later to deny it. The example in question was Bush claiming that the U.S. would cut the need for imported oil by 75% by 2025. The next day, someone came out and said that imported oil wouldn’t really be cut, and everyone took that as an example of the Bush administration essentially lying.
But here’s the deal. Let’s say the U.S. imports 20% of its oil from the middle east. So saying you want to cut that by 75% is essentially saying you’re going to cut oil consumption overall by 15%. Fine and good. But even if your oil consumption is 15% less, you STILL would import as much oil as you can from the middle east, for the simple reason that it’s the cheapest way to get oil. In fact, the total percentage of oil imported from the middle east could go UP, because even though you’re using 15% less oil, you’re still importing as much of the cheap stuff as you can get your hands on. As an example, if the U.S. cut oil consumption by 8)%, then it might import 100% of its oil from the middle east, because it can now meet all its oil needs by using the cheapest source.
The important factor, though, is that if you use 15% less oil, then if you had to, for security reasons say, or if OPEC created a total embargo, you could get all your energy elsewhere and pay what you’re paying today in overall energy costs. So it makes you more secure.
In reality, the oil market is a lot more complex than this. Oil is sold at a single price for the same grade, no matter whether it cost $5/bbl or $30/bbl to produce. But the intricacies of the market are such that the U.S. buys its oil from a whole range of producers, as does everyone else. That won’t change even if you cut your oil consumption in half.