[thackney]

I believe it takes more water to refine oil into a gallon of gasoline than to make a gallon of ethanol.

If you search a little bit, I don't believe you will find this to be true.

[hlmencken3]

Ethanol process uses less than 4 gallons water for each gallon of ethanol produced.

By contrast:

http://www.ci.lincoln.ne.us/city/pworks/water/funfacts/trivia.htm

"It takes 1,851 gallons of water to refine one barrel of crude oil."