“Gasoline is going—alcohol is coming. And it’s coming to stay, too, for it’s in unlimited supply. And we might as well get ready for it now.” ~ Henry Ford, 1916.
The Middle East is the proud owner of natural oil reserves, they dictate the price of the oil to the rest of the world. The shortage of petroleum, increase in oil prices, and decrease in supply has been predicted to cause major conflicts while intensifying the existing ones. The governments have come up with an alternative to conventional fuel usage. This is referred to as the “non-conventional,” or the “usage of alternative fuels” (Davis, p. 4).
History of Ethanol in the United States
According to Landis (pg. 1), the first fuel crisis took place during the administration of Carter. It was then that the government realized the need to be self-sufficient in the petroleum industry. Congress helped in achieving the goal by gradually increasing the “exemption on federal excise tax” up to “.06 cents per gallon.” Until the arrival of the 1990s, the usage of ethanol was adopted to reduce the dependency on petroleum. However, in the 90s, the government finally acknowledged the effect of ethanol on the reduction of air pollution. At the end of the decade, the “first-flex vehicles,” or cars that run on “85% ethanol fuel mix” were introduced.
Ethanol and Transportation
The report from Food and Water Europe (p. 4) identifies the two main functions of Ethanol as an alternative fuel, namely as a “gasoline replacement and oxygenate.”
Today, the world is highly dependent on the transport industry, whether it be domestic or international. The rapid increase in the use of transporting means is forcing the authorities to continue the supply of fuels; conventional or non-conventional. The Food and Water Report Europe (p. 7) mentions that the usage of oil per day is about “80 million barrels a day.” The United States consumes 25% of the global oil that is almost 20 million barrels per day.
Currently, the United States is faced with two problems related to petroleum, consumption, and availability. Due to technological advancements, petroleum and fuels are consumed as much as water (maybe even more) in the Western world. Leading, eventually, to a polluted environment. Even though the US consumes the most oil in the world, it is not gifted with its natural reserves. The government, therefore, needs to find alternative fuels, hence the advent of ethanol.
Impacts of Ethanol Usage
The introduction of any new element in the society or environment brings with it the positives and the negatives. The authorities must minimize the negative aspects and cherish the positive ones.
Advantages of Ethanol
Dr. Robson (p. 6) identifies the usage of ethanol as exceptionally “attractive,” as it was the first fuel of choice due to its chemical makeup. Ethanol, he says, has a “higher octane rating of 113 to that of petrol” which is “between 83 and 95.”
Another few advantages are mentioned by Monsma and Riggs (p. 3-5), as the positive impact on “security, economy and environment.” He says that the security of the nation is enhanced because Middle East’s monopoly is put to an end. The constant price negotiations and the crisis occurring due to oil shortages are now avoidable. There is an opportunity for more economical growth. The production of Ethanol creates a new industry and gives rise to more jobs. The unemployment rate can decline and the revenues of the nation can be increased. The impact on the environment is substantial as the reduced emission of carbon dioxide will lessen the air pollution.
Also, the degree of independence for individual nations would increase. The money spent by the government on the import of oil supplies will be saved and other related projects can be started which will eventually increase the revenues for their nation. The consumers will also benefit from the low prices of fuels, as the fuel will be produced locally. The fluctuations in the prices of oils and fuels will not take place regularly. Another industry can also be introduced to design and manufacture environment-friendly cars to support the consumption of ethanol fuels.
Disadvantages of Ethanol
A presentation by Fuller, Hollis, and Kreutz mentions the impact of bio-fuel and alternative fuel production on the environment. According to them, the usage of corn will require an adjustment to agricultural production. This will lead to deforestation as the previously “un-cropped” ground will be changed into crop fields.
The Brazilian Amazon is threatened to diminish due to deforestation. Even though the role of soybean expansion is minimal it is growing at a faster rate as the years are passing by. It will eventually play a major role in deforesting the world, leading to an increase in global warming. In today’s world, firms ‘claim’ to be socially responsible, however, the growing of deforestation and the data do not agree with their statements.
As mentioned earlier, the production of biofuels will create a new industry. However, the problems that the new industry will encounter are numerous. The farmers might increase the prices of corn, thus leaving the government no choice but to import cheaper corn. The barriers to enter the market will also increase and the already “established farmers” will exercise a competitive advantage. According to Chan, Flannery, Garthwaite, and Westlake (pg. 23), the production and expansion of biofuels require that “agricultural productivity” be increased.
Aden (pg. 1) points out additional negativity brought by the initiation as well as expansion of biofuel production. He says that the expansion and growth bring the concern of “water availability, utilization, and quality” of water. Dr. Robson (pg. 10) states that ethanol is “less efficient than petroleum” as its “energy content” compared to petrol is only 70%. He declares that this issue “can not be changed.”
The presentation by West and Anu-Thu (p. 8) mentions a high risk for the environment by ethanol production. “Aldehyde, a function of ethanol volume,” they say is considered to be harmful to “ear, nose and throat” and can lead to “cancer.” Research has proved that the consumption of ethanol is better for the environment than traditional gasoline and petroleum. The naturalists and the eco-scientists have determined that it is not the consumption but the production of ethanol that will harm the ecosystem. Deforestation will eventually lead to an increase in world hunger, as the land that can feed the human population of the world will be used to fuel the engines of our cars. Science Encyclopedia mentions that not only the life on land will be affected but the life underwater will face a huge loss. It says that the production process has a by-waste product called “swill” which is exceptionally “toxic to aquatic life.”
Brazil vs. the United States
Brazil (Seelke and Yacobucci, pg. 7) up till 2004 was considered to be the top producer and consumer of the alternative biofuels industry. The United States has now taken over the position of Brazil. Monsma and Riggs (pg. 7-8) discuss the “Brazilian Model” of production and the lessons that the United States industry should learn from it. The main source of ethanol production in Brazil is sugar cane, whereas in the United States it’s corn. The author says that the “ethanol produced from corn costs more and produces less energy per unit” when compared to ethanol produced by sugarcane. Also, the rapidity with which the Brazilian consumer adopted “flexible-fuel vehicles” can be replicated by the United States. The “Brazilian model” is driven by the “real choice” of consumers.
The Brazilian government, to ensure its dependency, has introduced a regulation that states that “all gasoline sold in Brazil must contain at least 20%-25% ethanol” (Seelke and Yacobucci, pg. 8). On March 9, 2007, the two governments “signed a Memorandum of Understanding”. Both agreed on committing themselves to enhance the usage of ethanol by increasing the R&D, developing industries in the developing nations, and working “multilaterally to advance the global development of bio-fuels” (Seelke and Yacobucci, Summary).
Future of Ethanol
Ethanol and other alternative fuels continue to provide the countries that do not possess natural oil reserves with the alternative and additive to the traditional usage of oil and petroleum. The government, especially the United States and Brazil, have joined forces to enable other countries to enjoy the independence felt by them. The production and expansion of the products do pose numerous political, economical, and social issues in the long term. The established corn farmers will put barriers to the entrance for the new farmers, which will lead to an increase in the price of the crop. The government is faced with the challenge of finding grounds to grow corn to meet the demand levels of ethanol production. At the same time, it will have to deal with the activist who will protest for the protection of natural habitats. Finally, the government will have to invest a huge amount of resources to continue and maintain this project. The United States has the example of the Brazilian Model to follow and replicate. It might need to convert its main crop of production to sugar-cane, which will lead to a more energetic fuel at a lower cost. Finally, the new industry will have to come up with marketing techniques and strategies to convince the consumer to adopt the alternative to petrol.
Conclusion
Economy and social progress will continue to take place rapidly; however, the cost has to be paid by either ruining the environment, the future of developing countries, or the sea life of our world. There is no doubt that ethanol is more environmentally friendly when it is ‘consumed‘ but the problem arises with the production and the requirements of its production. Governments can reap the positives for the short-term, eventually though the negatives will take over the positivity. The project of alternative fuel production might prove to be successful in the long run, with the condition and cost of sacrificing our forests, sea life, and the opportunity for developing countries to finally become developed. The production and usage of ethanol by all vehicle owners will lead to a rapid depletion of our natural resources, namely forests, pure healthy water, food, and “aquatic life.” The policy developers need to weigh both sides to take the decision, not only for today but for the days to come. Once the right decision has been taken other opportunities and options will come. As Lyndon B. Johnson said “If future generations are to remember us more with gratitude than sorrow, we must achieve more than just the miracles of technology. We must also leave them a glimpse of the world as it was created, not just as it looked when we got through with it.”
Works Cited
Abad, Chris. Mikhail Khleblaov, Shadi Sedhi, and An-Chi Tsou. “Investing in Ethanol.” Khosla Venture. PowerPoint presentation. 2007.
Aden, Andy. “Water Usage for Current and Future Ethanol Production.” Southwest Hydrology2007: 22-23.
Anh-Thu, Ngo. and Gale West. “Advantages and Disadvantages of Using Ethanol: The Consumer Viewpoint.” PowerPoint presentation for AIEA2 International Conference and WORKSHOP of the CAES at Laval University Québec. 2004.
Butler, Rhett A. “U.S. ethanol may drive Amazon deforestation.” Mongabay.com 2007. Web.
Clan, Angus., Mark Flannery, Andrew Garthwaite, and Edward Westlake. “Alternative / Renewable Energy – Theme: There Is An Alternative.” Global Equity Research. United States: Credit Suisse, 2007.
Davis, Brett. “Alternative Fuels. “Understanding Your Alternative Fuel Choices. Butterfly Reports, 2008. 4-5.
Food and Water Europe Group. The Rush to Ethanol: Not All Biofuels Are Not Created Equal. Washington: Food and Water Europe, 2007-08.
Fuller, Chris. Bryan Hollis, and Julie Kreutz. “Ethanol Production in The United States: how the US public are being misled.” PowerPoint presentation.
Landis, Shawn. “Alternative Fuel: A Brief History, E85 & Why Our Cars Don’t Yet Run on Corn.” suite101.com, 2007. Web.
McAtominey, Christopher. “The History and Development of Bioethanol as an Alternative Fuel.” MS Thesis University of Manchester, 2007.
Monsma, David W. and John A. Riggs. A High Growth Strategy for Ethanol. United States: The Aspen Institute, 2006.
Science Encyclopedia. “Ethanol – Disadvantages Of Ethanol As An Alternative Fuel.” 2009. Web.
United States. Congress House. Congressional Research Service. Ethanol and Other Biofuels: Potential for U.S.-Brazil Energy Cooperation. Order Code RL34191. Seelke, Clare Ribando and Brent D. Yacobucci, 2007.