E85 and the Economy

As was the case in the early 1970s, the American motorist has recently experienced a new run-up in the price of motor gasoline. The oil shortages of 1973-74 were the result of an embargo; the oil charges of 1991 were the result of the Gulf War; while the price spike of early 2000 was the result of planned supply reductions which increased the price of crude oil from $11 to $32 per barrel. This increased price of imported oil has also been the primary cause of the U.S. balance of trade deficit setting record after record, month after month.

The United States imports over 53 percent of its total energy and uses more energy than any other nation in the world. The use of alternative fuels, including propane, natural gas, methanol, electricity, and ethanol, will all contribute to a reduction in the amount of crude oil used in vehicle operations.

Not only does using E85 help reduce American dependence on foreign oil, but because Ethanol is produced from crops grown in the U.S., it can also help stabilize commodity prices. And because E85 is a viable, home-grown alternative to gasoline, E85 provides competition, which is good for consumers.

In the near future, a wide range of waste products will be used to produce ethanol, further developing our national energy independence.Ethanol production is estimated to increase net farm income more than $4.5 billion. It boosts employment by 200,000 jobs and improves the balance of trade by over $2 billion.The pricing for E85 is comparable to traditional gasoline.

Guidebook for Handling, Storing & Dispensing Fuel Ethanol