US Energy Department estimates ethanol production efficiency as 1.34 units of energy out for 1 unit in, with projections for improvements in both corn-based processes and biomass-based processes going as high as 2 to 1. This is hardly "no savings". See the link below.
If ethanol provides no net energy gain, how would it reduce dependence on foreign oil?
Cracker Jack:
Two independent studies (and I would NOT categorize the US government as independent in this case) have each come to the conclusion that ethanol production results in a net loss of energy. While some earlier studies suggesting a 70% loss have been debunked, the current consensus is that ethanol requires more energy to produce than it yields.
Ethanol costs more to produce than gasoline, yields less energy (which lowers your gas mileage) and competes for feed grains (bought steak lately?)
Ethanol can be made much more efficiently from sugar cane - but there is not a lot of domestic production.