The United States is increasingly dependent on imported energy to meet our personal, transportation, and industrial needs. With the rise of oil prices above $100 a barrel, the impact of our dependence on imported oil takes on greater importance.  As a domestic, renewable source of energy, ethanol can reduce our dependence on foreign oil and increase the United States' ability to control its own security and economic future by increasing the availability of domestic fuel supplies.

By displacing hundreds of millions of barrels of imported oil, the increasing reliance on domestically-produced ethanol is making available billions of dollars for investment in domestic renewable energy technologies. 

FACT: The U.S. imports 65% its petroleum needs today.

By 2030, the Energy Information Administration (EIA) projects the U.S. will import 70% of its petroleum.  And oil prices are not expected to ease soon. 





FACT: Two-thirds of the world's known oil reserves are located in the volatile Middle East.

Milton Copulos, President of the National Defence Council Foundation, estimates the U.S. spends more than $137 billion a year on military operations securing the safe delivery of oil from the Persian Gulf.


FACT: According to the Government Accounting Office, the U.S. has spent more than $130 billion over 32 years in government subsidies to the oil industry.

That does not take into account the billions spent since the turn of the century or the money spent to protect our military troops in the Middle East. (GAO/RCED-00-301R)


FACT: Blended with gasoline at terminals, ethanol can help extend our fuel supply by adding volume to the market.

The production of ethanol also helps to diversify our energy infrastructure with local production of renewable fuels.  Bear Stearns analyst Nicole Decker estimates that the 400,000 barrels of ethanol produced daily in 2007 could displace the gasoline output from 2-3 average oil refineries (AP, Jan 2008).


FACT: The production of nearly 6.5 billion gallons of ethanol displaced the need to import 228 million barrels of oil in 2007. 

That is more than half the U.S. imported from Iraq and nearly half that from Venezuala in 2007. The value of the crude oil displaced by ethanol amounted to $16.5 billion in 2007.

Sources: LECG, LLC February 2008; RFA; Energy Information Administration


FACT: Every 1 Btu of petroleum fuel used to produce ethanol generates 13.2 Btus, greatly enhancing U.S. energy security.

Source: USDA