AmericanTruckersAtWar

Professional, Polite, Prepared to Kill

Ethanol raises food costs without solving U.S. fuel problem

Bill Becker, in his May 24 Voices letter claims, “Ethanol is a significant step in the right direction for the U.S. to gain fuel independence.” He couldn’t be more wrong. The 6 billion gallons of ethanol produced in 2007 barely generated a 15-day supply of fuel. And it took 25 percent of total U.S. corn production and a cost to taxpayers of $6 billion in federal and state subsidies, tax credits and tax exemptions to do it.

If the entire U.S. grain harvest were used to make ethanol, it would provide scarcely 18 percent of our automotive fuel needs each year; today ethanol barely supplies 3 percent.

Becker brought up the five top U.S. oil company profits of $123 billion in 2007, but what he fails to mention is that $87 billion went to pay U.S. income tax; $24 billion was paid to U.S. shareholders in dividends, and $8 billion was for participating in the drilling of 17,000 new oil wells in 2007.

Speaking of profits, Archer Daniels Midland produces one-fourth of U.S. ethanol annually. Its profit in 2006 was $10.8 billion only made possible by subsidies, tax credits and exemptions. ADM has been costing the U.S. economy billions for years.  More from the Springfield, Missouri, News Leader

A good explanation of ethanol and why it is not a viable alternative to oil.  Nancy “Lights Out” Pelosi is still on her “vacation”, as are other Democrats as Republicans continue in Washington, demanding they return to work on a real solution to high fuel costs.

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August 8, 2008 - Posted by | economy, trucking | , , ,

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