Update Ethanol Subsidies to Pressure OPEC
by John D. Graham (Lexington Herald-Leader/McClatchy-Tribune) Editorial …Due to large swings in oil prices, which are partly manipulated by OPEC, a domestic ethanol industry wouldn’t survive without government support. Countries with strong ethanol industries such as Brazil have pro-ethanol policies.
…Now is a particularly dangerous time to eliminate federal support. OPEC’s power will rise as the global economy recovers and as a strong appetite for oil in China and India continues to be satisfied.
If pro-ethanol policies were terminated immediately, U.S. taxpayers might benefit in the near term, but, in the long run, the real beneficiaries would be the oil barons in the Middle East, Venezuela and Russia.
…It’s valid to argue that hybrid and diesel engines reduce gasoline use at a lower cost than ethanol. But even more oil can be saved with hybrid engines running on E85 and trucks using biodiesel mixtures. READ MORE