Wednesday, August 22, 2012

Summer Drought May Drown Out Ethanol

Summer Drought May Drown Out Ethanol

Ken Silverstein, EnergyBiz
When it comes to subsidies, ethanol has been considered the granddaddy of them of all. And while the major supports were allowed to lapse last December, one big one remains: a federal mandate requiring billions of gallons of ethanol-blended fuels to reduce reliance on foreign oil. Now, though, the summer drought is drowning out the clamor to keep that mandate in place. Here’s why: Most of today’s ethanol is derived from corn -- a crop that is already in high demand from livestock producers. But the lack of rain has damaged corn, which means that the added demand ...http://www.energybiz.com/article/12/08/summer-drought-may-drown-out-ethanol-requirements
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