I think that's pretty much inevitable. The economics of ethanol production are deeply intertwined with the economics of oil production -- especially the way it's being done in the US, where the amount of petroleum used in the process represents roughly the same amount of energy as that contained in the end product (depending on how thorough one is in including all of the fuel costs involved).
I don't believe it is inevitable at all. Don't make me invoke the power of the Mods, cause I will do it.
As I said, looking at non political, practical information, the kind business people read, because they actually need real information to figure out if something is worth doing, there is money to be made in ethanol.
The myth/propaganda that it takes MORE petrol to create the same amount of energy from ethanol is pure crap. Clever crap, because some people just buy it, throw their hands up and declare ethanol is a waste of energy.
If you only look at the worst case scenario, somebody buying corn from a petrol intensive farm, shipping it, drying it, all using gas/diesel, then using petrol to ferment it, then ship it again, it probably does work out that way.
No surprise there. But claiming all ethanol is that petrol expensive is dumb, it is propaganda, it is nonsense of course.
It might be comforting to those who don't want any alternative fuels, to close the book and say ethanol is a waste of energy.
But in the real world, people who are making money off of ethanol don't give a damn. They even focus their attention on improving efficiency, finding new ways to utilize both waste products of production, as well as reducing costs.
While it might make an oil Baron cringe, the idea of farmers, or corporations, running farms off of fuels grown on site, and making a profit doing it, makes some of us smile. Using old fashioned methods of rotating crops, rather than spending 40% of your profits on petrol based fertilizers, has got to bother the fertilizer vendors, as well as the source of the oil.
The very concept that you can be independent of an Oil company, which also means independence from the taxes involved, is the sort of thing that challenges the status quo. Add in some wind turbines on the same land you are growing soy, potatoes and switch grass for fuel, put some cheap Nanosolar cells up for harvesting sunshine, burn biodiesel and ethanol in vehicles, and you get this vision of not only freedom from some oil well in Saudi Arabia, but also bigger profits than you could reap from growing just food on the same land.
Use the methane from animal waste for heat, and this whole alternative thing starts to look like a practical way to make money, grow food, and fuel, and not worry about an oil crisis.
Ethanol represents a real way to store and transport solar energy. Combined with biodiesel, from the same crops, we are looking at a simple, practical way to convert sunshine into a portable fuel source.
Cynics will cry out, there isn't enough land! It won't supply but a small part of the energy needs! It's a waste of time! It costs more!
Fortunately, cynics aren't allowed to actually do anything to stop pragmatic people from doing stuff. And if you are the person buying biodiesel and ethanol from the farmer down the road, or delivering your crop to him for conversion, you probably don't care what a cynic has to say about anything.
As oil prices rise, every acre becomes more profitable. If oil distribution is disrupted for some reason, (war, terrorism, hurricanes, refinery fires, shortages, rationing, whatever) , ethanol becomes incredibly valuable.
Local production, (even in your backyard) makes the cost of ethanol stable, not subject to either market forces or distribution problems, which has a certain value that doesn't have a price, in times of crisis.
That the Government idiots don't want anyone to make their own ethanol, (cause you can drink it), is a very old problem of course. Making ethanol is one of the oldest of human skills. We know how to do it, in almost any situation, out of almost any source of sugar or starch. Due to the other use for ethanol.
Imagine what the public mindset would be like if they thought they could make their own fuel for their cars. Now imagine they figure out it can be done a lot cheaper than buying gasoline.
Oh my. Oh my my.
Unlike a lot of things, how much energy it takes to make some moonshine, how long it takes, what it can be made out of, and how much energy there is in a gallon of it, all those things are no mystery at all.
Any idiot with a primitive still, some sugar and firewood can make ethanol.
It is about as far from a mystery as it gets. Anyone who tries to make it seem complicated, or expensive, has some other issue, some other problem with the concept.
And yeah, Fords ran just fine on ethanol. Some of them still do.
The new ones run even better on it.
Go figure.