Oil companies did not demand that ethanol be used as the oxygenating additive in fuels. Congress refused to renew the liability waiver for MTBE, which had been found to be causing problems, and whether through environmental consciousness or just the plain ol' bottom line, the oil companies use the only other Congressionally approved mandated oxygenating additive: ethanol. It was not just the ethanol blends, but the need to blend ethanol in which caused part of the first gasoline price spike, Katrina/Rita, and global demand were other contributing factors.
However, Federal subsidies have pushed the ethanol fuel thing waay past where it would have likely gone if the market had been allowed to decide, and gasoline without ethanol would likely be cheaper (despite oil prices) because it could be sent down pipelines ready to pump instead of having to be blended with ethanol trucked in or shipped by rail to be blended nearer the point of sale.
The bottom line would be cheaper fuel and cheaper food.
Make it a point to your Reps, I’m a Freeper but not necessarily a lawmaker. :^)
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