VeraSun Energy and the Ethanol Debate

I am writing this in response some of the debates going on around ethanol at the moment, and to provide some research driven facts regarding my position in the area and particularly in VeraSun (VSE).

The real issue is energy security. The more ethanol from US corn in your tanks, the less dependent the US is on foreign imports. This is a no-brainer - oil will go up as the middle classes in India and China grows (see India/China automotive growth targets for next 5 years here). In addition, it keeps the USD in the US; this is why Brazilian ethanol is not a good solution. Every percent of ethanol from US produced corn in the tank of a US driver means that money is being retained in the US economy and that the country is less reliant on foreign imports. Don’t be surprised if you find E/20 at a station near you in the few years