Oil And Corn Tout Dueling Studies On Future Of U.S. Biofuel Program

Big oil and big corn continue their clash about on proposed biofuels policy reforms. Valero Energy Corp a major oil refiner, funded a study by Charles River Associates that supports placing a cap on the price of biofuel blending credits under the U.S. Renewable Fuel Standard - a change meant to help refiners that complain the RFS now costs them a fortune. A rival report from Iowa State University, also released this week, said such a cap on credits would backfire by eroding U.S. demand for corn-based ethanol and potentially lowering corn prices, already under pressure from a supply glut.The RFS requires oil refiners to blend increasing amounts of biofuels, mainly corn-based ethanol, into the fuel supply each year, or buy the renewable fuel credits, called RINs, from other companies that do the blending.

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Oil supplies have a limited life span while growing corn is sustaining. The complete transition to corn biofuels must start at some point.

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2 hours ago, franco said:

Oil supplies have a limited life span while growing corn is sustaining. The complete transition to corn biofuels must start at some point.

sigh.. completely unrealistic. corn biofuels are not economical nor are they environmentally friendly. It's much less efficient. Why biofuel? Why not renewables? Corn as a fuel is a nonstarter--never was. It was used as a necessity long ago. Now it's just a political pawn used to pacify Iowa to garner favor come election time.

The International Institute for Sustainable Development estimates that the CO2 and climate benefits from replacing petroleum fuels with biofuels like ethanol are basically zero (IISD).

corn = food.

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