Biofuel: The Real Cost of Ethanol Part II
I know I have already written about this in various forms but I really want you to get this, corn based ethanol has become increasingly popular due to the rapidly increasing oil prices. Currently, there are more than 100 ethanol refineries in the United States, and some 70+ fineries are in the midst of being built. The demand for ethanol and a variety of other biofuels has created an industry that relies on billions of taxpayer subsidies, in the United States and elsewhere. Of course, with the increased demand for corn based ethanol and increased demand for corn production has developed: some studies have reported that today’s mills responsible for the production of ethanol will wind up using almost 50 percent of all the domestic corn produced in the US. Such an argument is powerful if one considers that the US is responsible for producing a total of 40 percent of the globes total corn production.
It takes 450 pounds of corn to make enough fuel to fill an SUV with 25 gallons of fuel: with that equation in mind, it isn’t difficult to see how devastating the overuse of corn products can be on the economy. The increased demand for corn to produce ethanol is bound to establish an unnecessary stress on the global supply of edible crops—pressure that will have wide ranging and possibly devastating effects, particularly in third world countries. Oil prices and food prices are practically inseparable and the implications that accompany the mad increase in corn production may have a shocking effect for consumers and manufacturers alike.
The increased demand for ethanol in the US has resulted in an increase on the price of corn, an increase on the price of a variety of grains, and an increase in the price of oilseeds. Let’s not forget that there may be an increase seen on the cost of land used to produce corn and grains, and the cost of feed for animals may also be affected. While the use of ethanol seems like a promising arena and an answer to our depleting fossil fuels, IT IS NOT. In truth the use of this particular biodiesel fuel is merely shifting the problem to other areas of the US economy. That shifting of the problem will be most noticeable in the corn production industry, in the food production industry and in the feed industry. Innovative solutions to the issues produced by ethanol production are going to need to be established and established without delay. To learn more about alternative solutions, read my posts on alternative biodiesel and renewable energy sources.
Wednesday, July 11, 2007
