ALT-1 E85 Ethanol Explained
E-85 Ethanol is a designation assigned to a mixture of 85% alcohol and 15% gasoline. This product is causing much excitement in the agricultural community as growers are enjoying high demand for their products, and auto manufacturers anxious to build new flexible-fuel vehicles that can use the new E85 fuel.
Needless to say, many consumers are excited at the prospects of cheaper fuel, and becoming less dependent on foreign oil. The euphoria that presently grips American consumers may be short-lived if food prices soar in response to this new demand for grain products to be turned into fuel instead of for food purposes.
The facts are obvious, our addiction to foreign oil will be painful to reduce. If we seek an abundance of ethanol to fuel our cars, it will be a direct trade-off for much higher food costs. The market laws of supply vs. demand will dictate the economics of this dramatic change which is still largely an unknown. For example, milk in my local market has risen one dollar a gallon in the past 3 months. How high will it go? The answer will be simple, how much will dairy farmers have to pay to compete with the ethanol processors.
Market forces will ultimately dictate all of the answers, but one thing is sure. Our net prices for fuel might come down a little in the long run, but food prices will spiral upward to unknown peaks.
If Americans were really serious about reducing their dependency on foreign oil, they would voluntarily reduce their driving by 25%, and avoid the risk of an unstable food supply. The logical answers are out there, staring us in the face. Our stubborn refusal to conserve energy while scientists seek new viable sources may cause us a reality far more painful than dealing with OPEC for continued oil supplies.
I would love to be wrong on this assessment, but I don't think that I am. Hopefully, these thoughts will stimulate you to research this subject thoroughly via the Internet. The information is out there, and you should draw your own conclusions.
