The press provides us with two more bits of evidence that the ethanol lobby has stopped courting gullible reporters with three-martini lunches and moved up to chugging pints of pure ethanol.
The first item is a prudently unsigned Associated Press story in The Washington Times May 26 which spoke of the ethanol industry “lobbying blitz arguing that 8 billion gallons of ethanol would replace 2 billion barrels of crude oil.”
There are 42 barrels in a gallon of crude oil, so you’d need 84 billion gallons of ethanol – not 8 billion -- to replace 2 billion barrels of crude.
Besides, the 8 billion gallons of ethanol cannot be produced from corn or sugar (the only sources politicians favor) without wasting a lot of petroleum. It requires petroleum to fuel farm machinery, to produce fertilizer and insecticide, and to transport both the corn and ethanol by diesel truck or train (because ethanol won’t flow through pipelines as oil and gas do).
The second evidence of ethanol poisoning is “Stirrings in the corn fields” from The Economist, May 14. This piece claims Midwestern U.S. drivers can save money by using 85 percent ethanol (E85), because the price near cornfields “is only 10 cents or so from being cheaper than standard gasoline even if there were no subsidies” (of 51 to 71 cents a gallon).
Even if prices of E85 and gasoline were identical, however, E85 would nonetheless be 30 percent more expensive because cars using gasoline get 30 percent more miles per gallon than those using E85. The government estimates, at www. fueleconomy gov, that a Mercedes Benz C320 gets 26 mpg on the highway with gasoline, for example, but only 19 mpg with E85. If gasoline were $2 a gallon, E85 would have to sell for about $1.40 to compete on a cents-per-mile basis. Incidentally, the much larger and more powerful E-series diesel Mercedes (E320 CDI) is rated at 37 mpg on the highway –nearly twice as fuel-frugal as the smaller C320 using E85.
The U.S. political impulse to produce more ethanol from corn cannot be justified on economic grounds, though tax-financed subsidies are always described as a brilliant idea by those receiving them.