E-Mail Address: Password:
Forgot password?
Click here to register
[login]
Home Articles Stocks Faq About Us Contact Us RSS Feeds February 9, 2012
SEARCH: 
Energy Tribune Jobs
(click here)
Featured Stories
Guest Opinions
Americas
Europe
Russia
Middle East
China
Australasia
East Mediterranean
Africa
Nuclear
Commentary
Print Issues
Fracking Natural Gas
Wyoming CO2 Sequestra...
Israel-Iran: Reaching...
Cheniere to Export LN...
Harry Reid and the Ke...
The Volt: What Happen...
Venezuela, Colombia L...
In The Head Of U.S. E...
All Those Billions, B...
Understanding E = mc2

The Immorality of Ethanol

Posted on May. 19, 2008

5 dollar apple

Boosters claim ethanol production doesn’t raise food prices, but the numbers tell a different story.

The ethanol apologists refuse to face the facts. Soaring demand from the ethanol sector has helped push prices for all grains dramatically higher. Over the past two years, corn prices have more than doubled and soybeans have nearly tripled. And yet the ethanol boosters continue to claim that the biofuels business is not to blame.

When asked in April how biofuels are affecting food prices, Sean O’Hanlon, executive director of the American Biofuels Council, replied, “They really don’t.” He went on to say, “Ultimately, there is more food available because of biofuels, rather than less.” Other ethanol boosters have been making similar claims.

It’s true that several factors are driving food prices higher, including growing global grain demand, poor crops in other countries, rising energy prices, and the weak dollar. That said, it’s abundantly obvious that the key variable in the food-price equation – and the one that easily could have been avoided – is the ethanol scam.

Since 2000, the amount of corn used to make ethanol has increased nearly six-fold. By next year, according to the National Corn Growers Association, some 4 billion bushels of corn – about one-third of America’s expected crop – will be used to make motor fuel.

In February, the Federal Reserve Bank reported that food prices in 2007 jumped by 4.5 percent, the “largest in nearly two decades.” The Fed placed much of the blame on corn ethanol: “Food prices accelerated in response to strong world demand and high demand for corn for the production of ethanol.”

On March 11, the U.S. Department of Agriculture released its report on world agricultural supply and demand. It estimates that global grain demand will grow by 5.4 percent this year. Fully half of that growth will come from U.S. consumption of corn for ethanol.

On April 9, the World Bank released a report that stated, “Increased bio-fuel production has contributed to the rise in food prices.” It continued, “Almost all of the increase in global maize [corn] production from 2004 to 2007 (the period when grain prices rose sharply) went for bio-fuels production in the U.S.”

In a report released a year ago, Iowa State University’s Center for Agricultural and Rural Development estimated that the ethanol mandates have increased every American’s food bill by about $47, due largely to higher grain prices. Last month, a report commissioned by the Coalition for Balanced Food and Fuel Policy, a group that represents meat, dairy, and egg producers, stated that, counting subsidies and higher food prices, the ethanol scam will cost each American about $106 this year.

The anti-ethanol forces are growing. In late April, Texas Gov. Rick Perry, a Republican, requested a waiver from the federal ethanol rules, saying that the “misguided mandate is significantly affecting Texans’ family food bill.” A press release issued by his office said the mandates were creating “artificial demand” for grain that “is devastating the livestock industry in Texas.”

No matter how much U.S. or world grain production gets diverted to make motor fuel, it will never make a large dent in global oil needs. According to the latest U.S.D.A. estimates, total world grain production – including corn, wheat, soybeans, rice, millet, and other grains – is currently about 2.1 billion tons per year. Each ton of grain yields about 105 gallons of ethanol. Thus, converting all of the world’s grain into ethanol would yield about 220 billion gallons of ethanol per year, the gasoline equivalent of about 9.5 million barrels per day. That’s only about 11 percent of current global oil demand.

The ethanol mandates that have been foisted on American taxpayers are not just fiscal insanity, they are immoral. Congress has created a system of subsidies and mandates that requires the U.S. to burn food to make motor fuel, at a time when there is a global shortage of food and no global shortage of motor fuel.

Therein lies one of the real perversities of the ethanol mandates: as the global economy heads for rougher times – thanks to higher energy prices and the subprime mortgage meltdown – food prices are soaring. And those food prices will increase anxiety among consumers, who will further reduce their discretionary spending. With the ethanol scam, Congress has created a food-eating Frankenstein. The only question now is: can it be killed?

Stumble It!
Share on Facebook   Share on Twitter
Back Home   Back to Top
Related Articles
B.C. Aims to Sell Cleaner LNG
By Geoffrey Styles 
Feb. 8 2012, 11:39 EST
All Those Billions, Blowing in the Wind
By Marita Noon 
Feb. 6 2012, 11:44 EST
Refinery Closures Lead to Rising Gas Pri...
By Robert Rapier 
Feb. 3 2012, 3:28 EST
In The Head Of U.S. Energy Secretary Chu
By Professor Ferdinand E. Banks 
Feb. 2 2012, 12:41 EST
The Volt: What Happens When Ideology Get...
By Marita Noon 
Feb. 1 2012, 3:04 EST
Ninety Seven Percent Is Not What You Thi...
By Art Horn 
Jan. 31 2012, 1:07 EST
State of the Union: "All Out, All o...
By Geoffrey Styles 
Jan. 30 2012, 1:04 EST
Iran Sanctions
By Andrés Cala 
Jan. 27 2012, 5:30 EST
Time, Newsweek Bury Keystone
By Michael J. Economides & Peter C Glover 
Jan. 26 2012, 11:08 EST
Super Fracking & the Next Shale Gale
By Peter C Glover 
Jan. 24 2012, 11:55 EST
The Falklands and Other Dangerous Disput...
By Steve H. Hanke 
Jan. 23 2012, 12:42 EST
Venture Socialism?
By Robert Rapier 
Jan. 19 2012, 3:41 EST
CLOSE
MORE
Energy Spurs A Recovery In Houston
By Kristina Shrevory 
Feb. 8 2012, 3:56 EST
Azeri, Iranian Gas Supply Failure Fuels ...
By Todays Zaman 
Feb. 8 2012, 3:37 EST
America’s Solar PV Market: Growth And U...
By Kirsten Korosec  
Feb. 8 2012, 12:55 EST
Crude Glut In U.S. Suppresses Canadian O...
By Shawn Mccarthy  
Feb. 8 2012, 12:42 EST
Top 5 Largest Shale Deposits Yet To Be F...
By Pierre Bertrand 
Feb. 8 2012, 12:37 EST
Oil Producers ‘Will Meet Demand’
By Times of Oman 
Feb. 8 2012, 12:34 EST
Global Warming Has Stopped?
By Peter Gleick 
Feb. 7 2012, 1:12 EST
Saudis Aren’t Keeping Lid On 100 Dollar ...
By Sharon Epperson 
Feb. 7 2012, 11:42 EST
Fracking Is Not A ‘Fait Accompli’ For 20...
By Mireya Navarro  
Feb. 7 2012, 11:35 EST
Average U.S. Gas Prices Hover At Record-...
By Ronald D. White 
Feb. 7 2012, 11:22 EST
India Will Burn More Coal Than China In ...
By Hindu Business Line 
Feb. 7 2012, 11:10 EST
Nabucco Gas Pipeline To Be Displaced By ...
By Julia Harte 
Feb. 7 2012, 10:53 EST
CLOSE
MORE
Venezuela’s PDVSA to Boost Orinoco Crude...
By Nathan Crooks 
Feb. 8 2012, 12:29 EST
Colorado Sportsmen Back Oil And Gas Disc...
By Denver Post 
Feb. 7 2012, 10:26 EST
NM Regulators Repeal Carbon Cap And Trad...
By CBS News 
Feb. 7 2012, 10:23 EST
Florida State Unveils Natural Gas Car
By Delmershae Walker 
Feb. 6 2012, 12:21 EST
Pemex Seeks To Add Conoco, Shell Subsidi...
By Laurence Iliff 
Feb. 3 2012, 1:55 EST
Petrobras Shuts Fifth Most Productive We...
By Lucia Kassai and Peter Millard  
Feb. 1 2012, 12:41 EST
US Refiners, Union Prepare For Possible ...
By Fox Business News 
Feb. 1 2012, 12:12 EST
Marathon Weighs Pipeline Option
By Gina Chon and Ryan Dezember  
Feb. 1 2012, 11:45 EST
Obama: Meeting US Energy Needs Will Requ...
By EV Wind 
Jan. 31 2012, 2:24 EST
Union Tells US Refinery Workers To Prepa...
By CNBC 
Jan. 30 2012, 5:55 EST
Oil Drilling Increased, API Says
By UPI 
Jan. 30 2012, 4:32 EST
DOE Announces Grants To Study Concentrat...
By EV Wind 
Jan. 27 2012, 5:01 EST
CLOSE
MORE
Turkey Turns To Coal And Nuclear Power
By Steel Guru 
Feb. 8 2012, 12:26 EST
World’s Largest Wind Farm Erects First W...
By Jessica Shankleman  
Feb. 7 2012, 11:27 EST
E.U. Rebuffs China’s Challenge To Airlin...
By James Kanter 
Feb. 6 2012, 5:24 EST
Italian Refineries To Shut Down Over Ira...
By Press TV 
Feb. 3 2012, 2:00 EST
Bulgarian Coal Miners Call Off Strike
By Reuters 
Jan. 23 2012, 11:59 EST
Chevron Gas Discovery Boosts LNG Plans
By News 
Jan. 20 2012, 3:08 EST
Ukraine Seeks Compromise With IMF
By James Marson  
Jan. 20 2012, 12:10 EST
Shell Joins Nova Scotia’s Offshore
By Daily Staff Biz 
Jan. 20 2012, 11:29 EST
UAE To Set Up Clean Energy Project In Af...
By Haseeb Haider  
Jan. 18 2012, 4:01 EST
Bulgaria Bans Chevron From Fracking For ...
By Carin Hall 
Jan. 18 2012, 10:49 EST
Norway Awards 60 New Oil Production Lice...
By Kjetil Malkenes Hovland 
Jan. 17 2012, 11:35 EST
Ukraine Says Won’t Sell Gas Pipelines To...
By Reuters 
Jan. 13 2012, 12:58 EST
CLOSE
MORE
Russia’s Sechin Proposes State Oil Field...
By Fox Business 
Feb. 7 2012, 10:34 EST
Fire At Moscow Nuclear Institute, Russia...
By Alexei Anishchuk 
Feb. 6 2012, 4:33 EST
Rosneft Gets License For Three Oil And G...
By Jake Rudnitsky 
Jan. 31 2012, 12:28 EST
Russia Unveils Ambitious Coal Industry P...
By Svetlana Kalmykova 
Jan. 25 2012, 5:23 EST
Russia Orders Oil Companies To Freeze Ga...
By Fox Business 
Jan. 23 2012, 1:40 EST
3rd Reactor Shut Down In Czech Republic
By Voice of Russia 
Jan. 23 2012, 12:06 EST
Miners Strike In Bulgaria Continues
By Sofia Echo 
Jan. 18 2012, 3:18 EST
Russia Concerned About Iran’s Uranium En...
By CBS News 
Jan. 10 2012, 2:38 EST
Putin Speaks Of Atomic Energy ‘Renaissan...
By Washington Post 
Dec. 12 2011, 3:46 EST
Russia Rejects Iran Oil Ban
By Daniel Fineren 
Dec. 7 2011, 12:15 EST
Floating Nuclear Power Station Helps Bal...
By RT 
Dec. 6 2011, 4:21 EST
Japan And Korea Cooking On Russian Gas
By RT 
Dec. 1 2011, 11:03 EST
CLOSE
MORE
India Increases Iran Oil Imports
By Benoit Faucon FAUCON 
Feb. 8 2012, 12:24 EST
Iraq-Turkey Oil Exports Resume After Bla...
By Times of Oman 
Feb. 7 2012, 10:38 EST
Iran To Start Early Production At Joint ...
By Tehran Times 
Feb. 6 2012, 12:05 EST
Iraq’s Oil Law May Be Pushed Till End Of...
By Kadhim Ajrash and Nayla Razzouk 
Feb. 3 2012, 2:18 EST
Iran Pipeline To Supply Gas By End Of 20...
By Kalbe Ali  
Feb. 1 2012, 1:00 EST
Explosion ‘Rocks Syrian Oil Pipeline’
By Eoin O’Cinneide 
Feb. 1 2012, 12:36 EST
US Lawmakers Take Next Step On New Iran ...
By CNBC 
Jan. 31 2012, 2:35 EST
BP To Start Jordan Gas Exploration Soon
By Mohammad Tayseer 
Jan. 30 2012, 5:20 EST
Abu Dhabi To Tap Nat Gas To Meet Fuel De...
By Steel Guru 
Jan. 27 2012, 4:48 EST
Iran Says It May Cut Off Its Oil Exports...
By Rick Gladstone and J. David Goodman  
Jan. 27 2012, 3:24 EST
Iran To Provide Ethanol Fuel Soon
By ISNA 
Jan. 26 2012, 4:00 EST
India Offers Pak Oil Pipeline
By Pawan Bali  
Jan. 26 2012, 1:10 EST
CLOSE
MORE
Pakistan, Qatar Reach Agreement For Impo...
By International Herald Tribune 
Feb. 7 2012, 11:17 EST
Chinese Move On Uranium Explorer
By NZ Herald 
Jan. 25 2012, 5:38 EST
Chinese Company Sinopec Ready To Boost L...
By Neil Wilson 
Jan. 23 2012, 12:46 EST
China’s Shenhua To Open Coal Mine In Aus...
By Reuters 
Jan. 19 2012, 1:43 EST
China To Retrieve More Natural Gas
By Zhou Yan  
Jan. 12 2012, 12:01 EST
Japan Asks Qatar To Ensure Stable LNG
By Mainichi News 
Jan. 10 2012, 12:41 EST
Indonesia To Begin Renegotiating With CN...
By Platts 
Jan. 9 2012, 12:38 EST
CNNC Unit Gets Regulatory Approval For I...
By Economic Times 
Jan. 6 2012, 1:30 EST
PetroChina Buys Full Stake In Oil Sands ...
By AP 
Jan. 4 2012, 11:46 EST
China Buys Russia, Vietnam Oil As Iran S...
By Florence Tan 
Jan. 3 2012, 4:38 EST
Cnooc, Sinopec Vie Over Fracking
By Dinny McMahon 
Dec. 15 2011, 3:54 EST
China Gas Rejects 2.2 Bln Sinopec/ENN Bi...
By Donny Kwok and Denny Thomas 
Dec. 14 2011, 4:04 EST
CLOSE
MORE
April Date Set For Restart Of First Nucl...
By China Post 
Feb. 8 2012, 12:49 EST
BHP To Produce More Shale Oil In U.S.
By James Paton 
Feb. 8 2012, 12:32 EST
North Korean Leader Kim Backs Natural-Ga...
By Henry Meyer 
Feb. 3 2012, 5:04 EST
Japan Protests China’s Possible East Chi...
By Mainichi Daily News 
Feb. 1 2012, 2:00 EST
Japan Finds Water Leaks At Stricken Nucl...
By Reuters 
Jan. 30 2012, 5:52 EST
Rio Tinto Denies Australian Coal Force M...
By Platts 
Jan. 30 2012, 5:45 EST
Asians Resist Notion Of Iran Oil Cuts
By RFERL 
Jan. 30 2012, 4:36 EST
Another Japanese Nuclear Reactor Suspend...
By Times Live 
Jan. 25 2012, 5:27 EST
IAEA Begins Review Of Japan’s Nuclear St...
By Reuters 
Jan. 23 2012, 12:03 EST
Edano: Japan Bracing For Nuclear-Free Su...
By Mitsuru Obe 
Jan. 19 2012, 11:42 EST
Petronas And Shell Sign Oil Recovery Dea...
By Today Online 
Jan. 18 2012, 3:26 EST
U.S. Presses South Korea To Reduce Oil
By Choe Sang-Hun 
Jan. 17 2012, 10:48 EST
CLOSE
MORE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CLOSE
MORE
Trafigura In South Sudan Oil Row
By BBC News 
Feb. 8 2012, 12:59 EST
Nigerian Militants Claim Attack On Oil P...
By Emirates 247 
Feb. 6 2012, 12:17 EST
South Sudan, Kenya Sign Agreement To Bui...
By Jared Ferrie 
Jan. 25 2012, 3:56 EST
Explosion Rocks Chevron’s Oil Rig In Bay...
By Osa Okhomina 
Jan. 17 2012, 10:51 EST
Mozambique Protest Blocks Coal Train Lin...
By AFP 
Jan. 13 2012, 12:46 EST
Pengassan To Shut Gas, Oil Production On...
By Taiwo Ogunmola  
Jan. 13 2012, 12:22 EST
Nigeria Oil Union Threatens Oil And Gas ...
By Washington Post 
Jan. 12 2012, 10:58 EST
Shell Restarts Production At Bonga Oil F...
By Sarah Kent 
Jan. 5 2012, 3:05 EST
Violence Erupts In Nigeria Over Petrol P...
By Independent 
Jan. 4 2012, 12:27 EST
Nigeria Gas Price Protest Turns Violent
By CBS  
Jan. 3 2012, 4:49 EST
Shell Offshore Spill Affecting 115 Miles...
By Washington Post 
Dec. 22 2011, 11:46 EST
Petrobras To Expand Pre-Salt Oil Drillin...
By Rodrigo Orihuela 
Dec. 21 2011, 10:44 EST
CLOSE
MORE
Russia Says Bushehr Nuclear Powerplant C...
By Trend 
Feb. 8 2012, 12:40 EST
Russia Prepares Privatization Of Nuclear...
By PSKN 
Feb. 7 2012, 11:32 EST
TVA Looks Again At Watts Bar Schedule
By World Nuclear News 
Feb. 6 2012, 4:30 EST
Nuclear Approvals To Be Resumed At Slowe...
By Liu Yiyu 
Feb. 1 2012, 4:48 EST
Unusual Event At U.S. Nuclear Plant Not ...
By People Daily 
Jan. 31 2012, 2:29 EST
S. Korea President Lee To Visit Turkey
By CRI 
Jan. 30 2012, 5:49 EST
Indo-Pak Civil Nuclear Cooperation Possi...
By Daily Times 
Jan. 27 2012, 4:53 EST
Turkey, Iran Calls On Quick Resumption O...
By Xinhua News 
Jan. 20 2012, 5:39 EST
Italian Minister Says Reject Nuclear Pow...
By EurActiv 
Jan. 19 2012, 4:10 EST
Vietnam Joins World In Peaceful Use Of N...
By People Daily 
Jan. 18 2012, 3:43 EST
Russia Warns Attack On Iran Could Unleas...
By Washington Post 
Jan. 18 2012, 11:26 EST
Niger To Pursue Nuclear Plans Despite Fu...
By Reuters 
Jan. 17 2012, 11:25 EST
CLOSE
MORE
Volt Doesn’t Make ’12 Greenest Cars ...
Feb. 8 2012, 12:31 EST
[Read More]
Geoscientists Call for Honest Dialog...
Feb. 8 2012, 12:52 EST
[Read More]
N. American Natural Gas Market Set t...
Feb. 8 2012, 12:44 EST
[Read More]
Energy Industry Dollars Flow to Romn...
Feb. 8 2012, 12:33 EST
[Read More]
Peak Oil Scare Fades Wells Gush Crud...
Feb. 8 2012, 12:28 EST
[Read More]
BP Says It’s Ready for Oil Spill Law...
Feb. 8 2012, 12:18 EST
[Read More]
Noble Energy Finds More Gas in Israe...
Feb. 7 2012, 12:20 EST
[Read More]
US Gas Prices Hover at Record High L...
Feb. 7 2012, 12:08 EST
[Read More]
N. Gas Price Outlook Grows Ever Blea...
Feb. 7 2012, 11:59 EST
[Read More]
[ click here ]
FaceBook  |   Twitter
Home | Subscribe | Articles | Commentary | Stocks | Faq | About Us | Contact Us | Subscribers Only | RSS | All News
Advertise With Us