Archives

Calendar

Corn ethanol is more about politics than price

Washington No Comments

By Don G. Briggs, President – LOGA (Louisiana Oil & Gas Association)

Today we are faced with record high oil prices, soaring gasoline prices, the value of the dollar in decline and an economy teetering on recession; all of this is being caused by a rapid growth in oil demand, tight oil supplies and limited surplus oil production capacity.

With that in mind, you would think the Energy Bill passed by Congress three weeks ago would provide incentives encouraging domestic exploration, such as opening federal lands and waters that are restricted for oil and gas exploration. The United States is the only country that restricts development of its natural resources. Not this Energy Bill. Instead of drilling our way to energy security, Congress proposes to “grow” our way to energy security with corn ethanol, or should I say corn politics.

Corn ethanol has been around for many years, and with no real success. Why? Because corn ethanol is not the answer to our nation’s energy needs. Allow me to clarify: I am talking about corn ethanol, not ethanol from switch grass, sorghum, or sugar cane.

The current craze on corn ethanol is about politics. Think about it, corn ethanol is American, it’s warm and fuzzy, and we are talking about the heart of America, the Corn Belt states, American farmers and presidential elections. It is all about politics.

The reality of corn ethanol is that the numbers do not work and the negatives are far reaching. Corn ethanol is touted to be environment friendly, and yes it is a cleaner burning fuel compared to gasoline but only by 15 percent.

The big culprit of corn ethanol is nitrogen-based fertilizer runoff which is the number one cause of the “dead zone” in the Gulf of Mexico. The runoff from corn crops is greater than any other crop, working its way to the Mississippi River and down to the Gulf.

The Environmental Protection Agency estimates that 210 million pounds of nitrogen fertilizer enters the Gulf of Mexico by way of the Mississippi River every year. The fertilizer causes explosive growth of algae, which then dies and sinks to the bottom, where it sucks up oxygen as it decays. This creates a deep layer of oxygen-depleted ocean where creatures either escape or die.

Here are some quick hard truths: Corn ethanol may be a cleaner burning than gasoline but not as efficient. It takes a gallon and a half of ethanol to give you the same energy as a gallon of gas. From 1995-2005, $51 billion in subsidies have gone to corn ethanol production, making corn ethanol the No. 1 federal handout. The International Institute for Sustainable Development found ethanol subsidies amounted to $1.38 per gallon – about half of ethanol’s wholesale market price.

Corn ethanol steals vast amounts of land that would be better used for growing food. Filling the tank of one SUV with pure ethanol requires more than 450 pounds of corn – roughly enough calories to feed one person for a year. Assuming the mandated ethanol production of 36 billion gallons per day by the year 2030 could be accomplished as set out in the Energy Bill, it would be equivalent to a mere 1.5 million barrels of oil per day. US consumption will be 27 million barrels per day by 2030.

In the future, corn ethanol will most likely be a part of the energy mix, not because it will be of importance to our energy security, but because of corn politics. Sad but true.