Joined: Mar 04, 2005 Posts: 2642 Location: New Zealand
Posted: Fri Mar 07, 2008 1:25 am Post subject: New study reveals ethanol impact on economy
New study reveals ethanol impact on economy
Quote:
The latest report, conducted by John Urbanchuk, an economist and director at the research and analysis firm LEGG, found that the production of nearly 6.5 billion gallons of ethanol means that the United States needed to import 228.2 million fewer barrels of oil in 2007, roughly 5 percent of total U.S. crude oil imports.
The report is being hailed by the National Corn Growers Association as helping the U.S. economy.
Ron Litterer, president of the association, said in a press release that the value of crude oil displaced by ethanol -- which is made from corn -- amounted to $16.5 billion in 2007.
Other highlights of the report are:
* The combination of spending for annual operations, ethanol transportation, and capital spending for new plants under construction added $47.6 billion to the nation's gross domestic product in 2007.
* The increase in economic activity resulting from ongoing production and construction of new capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 jobs in America's manufacturing sector -- American jobs making ethanol from grain produced by American farmers.
* Increased economic activity and new jobs result in higher levels of income for American households. The production of ethanol put an additional $12.3 billion into the pockets of American consumers in 2007.
* The ethanol industry generated an estimated $4.6 billion in tax revenue for the federal government -- $1.2 billion over the two major federal support programs for the ethanol industry. And the ethanol industry generated an additional $3.6 billion of tax revenue for state and local governments.
greeleytrib _________________ Human history becomes more and more a race between education and catastrophe. H. G. Wells.
Fatih Birol's motto: leave oil before it leaves us.
Posted: Fri Mar 07, 2008 3:55 pm Post subject: Re: New study reveals ethanol impact on economy
not only no costs but no inputs as well. As a matter of fact according to these people, ethanol just seems to magically appear in your tank pushing the gasoline out and forcing twice as much oil back across the sea.
6.5B gallons of ethanol = 154,761,905 Barrels of ethanol
154,761,905 Barrels of ethanol = 108,333,333 Barrels of oil equivalent.
Now thats one hell of a source of energy. According to these people each Mega joule of ethanol replaces 2 Mega joules of oil.
And just think the only thing it cost the US to make this wonderful dent of 5% on its oil import bill was 30% of the year's corn crop. So just think, energy independence is only 6X the US's total corn crop away.
I'm going out and getting a Hummer, they run on E85 don't they _________________ Angry yet?
Posted: Thu Apr 10, 2008 7:43 pm Post subject: Re: New study reveals ethanol impact on economy
I think relying on ethanol for transportation can be a disaster. Some cellulosic ethanol can make sense especially from "greenwaste." However growing corn for ethanol is a disaster. Using agricultural land, water, fertilizer ect for fuel instead of food has already resulted in corn prices doubling in some parts of the world.
Battery electric cars can be a good solution particularly with electrified roads. Some ethanol can make sense- but theres no way ethanol can effectively become mainstream without severely affecting the economy and food prices.
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