Energy Tribune Exposes the Ethanol Scam
Tuesday April 18, 2:25 pm ET
HOUSTON--(BUSINESS WIRE)--April 18, 2006--Looking for an explanation as to why gasoline prices are nearing all-time highs? Well, look no further than "The Ethanol Scam," the cover story for the April issue of the new Houston-based newsletter Energy Tribune.
In his story, Tad Patzek, the world's leading expert on the economics of corn-based ethanol, shows that it takes from "five to 12 times more fossil energy to refine corn grain into ethanol than it does to convert crude oil into gasoline or diesel fuel." He goes on to say that federal subsidies for corn production are little more than "a scheme to launder fossil fuels into an industrial raw material while damaging the environment."
Patzek also provides data that debunks stories praising Brazil's ethanol business. Yes, Brazil gets most of its motor fuel from ethanol. But Brazil's total gasoline consumption (about 4.3 billion gallons) is just 3 percent of America's total use.
Along with Patzek's story is a piece by Energy Tribune Editor-in-Chief Michael J. Economides, "The Energy Debit of Making Ethanol," which says that producing 4.5 gallons of ethanol requires farmers to consume some 1.8 gallons of fossil fuels.
In addition, the April issue of the magazine contains an interview with John Olson, one of Houston's most respected energy analysts. The managing partner of the 2003 Houston Energy Partners, a hedge fund, Olson explains why energy service companies will outperform the market.
Source: Energy Tribune
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