Ethanol fight fuels renewed heat between corn and oil industries… (Gunny G: BigBro, Epa, and Our Three-legged Horseless Carriages…)
Fuel Fix ^ | March 20, 2013 | Zain ShaukPosted on Wednesday, March 20, 2013 1:22:12 PM by thackney
A fight between oil giants and corn farmers reached a fever pitch on Wednesday, as the oil industry used a new study to argue that increasing ethanol use in fuel will hurt consumers and the economy.
Groups representing ethanol producers fired back, saying the oil industry was trying to undermine government efforts to reduce reliance on oil-based fuels. Because most U.S. ethanol is made with corn, producers are allied with corn farmers, who enjoy an expanded market and higher prices for their crops because of ethanol demand.
The oil industry study, commissioned by the American Petroleum Institute and produced by NERA Economic Consulting, said government mandates that require energy companies to buy more ethanol have driven up refining costs and created a “death spiral impact.”
“The Renewable Fuel Standard program is irretrievably broken,” said Bob Greco, director of the API’s downstream group, speaking on a conference call with reporters.He called on Congress to repeal the law……………