Is ethanol reducing dependence on foreign oil?
There are many claims around these theme, but they are easily shown to be false. From the Renewable Fuels Association’s (RFA) “Energy Facts”: FACT: In 2006, the production and use of ethanol in the U.S. reduced oil imports by 170 million barrels, saving $11 billion from being sent to foreign and often hostile countries. The RFA’s page on industry statistics shows that ethanol production in 2006 was 4.86 billion gallons. This is 116 million barrels. Oil has a BTU value of 138,000 BTUs/gal, versus 76,000 BTUs/gal for ethanol; therefore 116 million barrels of ethanol contain the BTU equivalent of 64 million barrels of oil. (Source: ORNL). The claim then is that 116 million barrels of ethanol, with a per barrel BTU value of just over half that of a barrel of oil, displaced 170 million barrels of oil. The RFA’s source on that was the consulting firm LECG, where director John M. Urbanchuk has also been quoted: The production of nearly five billion gallons of ethanol means that the U.S. neede
