AGRIBUSINESS: Biofuels Save Money at the Pump
The food verses fuel debate has argued the costs and benefits of using land for biofuels.
But a new analysis just out shows annual savings in the trillions.
Energy economist Philip Verleger says that fuel users save 50-cents to a $1.50 at the pump thanks to ethanol production under the Renewable Fuel Standard.
This cuts costs between 700 billion to 2.6 trillion dollars this year.
Verleger says that crude oil prices would be 15 to 40 dollars per barrel more and that the RFS added the same amount of fuel as Ecuador’s crude oil output to the world market.
Verleger says commercial crude oil inventories at the end of August would have dropped to 5.2 million barrels, significantly lower than any time since 1990.
He attributes this to Congress raising the renewable fuels requirement