NCGA
Responds to Exxon Chair’s Misconceptions on Net Energy
Balance of Ethanol (6-11-04)
The National Corn Growers Association (NCGA) yesterday sent a
letter to Exxon Mobil Corporation Chairman and CEO Lee Raymond
dispelling several inaccuracies he made during a speech concerning
U.S. dependence on foreign oil.
In his June 7 speech
at the Woodrow Wilson International Center, Raymond said corn-based
ethanol is “neither an economic or
energy-efficient choice, as it can require more energy to produce
than it generates in the end.” NCGA President Dee Vaughan
said a wealth of information exists to rebut Raymond’s statement,
specifically pointing to the preliminary results of new U.S. Department
of Agriculture (USDA) study by economist Hosein Shapouri. The study, “The
2001 Net Energy Balance of Corn-Ethanol,” shows that ethanol
generates 67 percent more energy than it takes to produce.
“Shapouri’s research proves ethanol undoubtedly has
a positive energy balance, even before subtracting the energy allocated
to co-products,” Vaughan said.
The letter also addresses
Raymond’s mistaken assertion that
corn grown for ethanol takes away land that could be used for food
and forests. Shapouri’s study points out that corn yields
will continue to increase, thereby increasing not only the net
energy value of ethanol production but also increasing the production
efficiency of the land.
Vaughan pointed out
that the U.S. Department of Energy estimates the United States
will import as much as 68 percent of its oil
demand by 2010. Domestically produced ethanol can help to expand
our nation’s fuel supply, he said. “The increased use
of ethanol in our nation’s fuel supply is not the singular
answer for U.S. dependence on foreign oil, but ethanol is already
playing an important role in the country’s overall energy
policy,” he said. “And ethanol will play an integral
part in finding a long-term energy security solution.”
Vaughan concluded by
calling on energy producers to work together in establishing
a solution to the mounting U.S. energy crisis. “Ethanol
provides more than 200,000 U.S. jobs annually, provides benefits
to our environment by reducing pollution, and plays an integral
role in contributing to a long-term solution to our nation’s
energy security,” he said. “During a time when our
nation needs to expand all sources of domestic energy, we should
come together and have a serious discussion based on facts, not
misconceptions.”
To view the letter in
its entirety, click here.