Ethanol is never going to replace our need for oil. However, It can lessen our dependence of imported oil from unstable parts of the world. We (U.S) import 17% of our imported oil from the middle-east, YIKES.
Read about the risks here
http://www.heritage.org/Research/Fea...ity/bg1926.cfm
When (not if) sh!t hits the fan with Middle East oil imports. The demand to fill that gap will be great, getting more oil from other sources will be difficult.
There is an alternative to fill the gap...ethanol. It doesn't require a drastic change in infrastructure. It blends easily with gasoline. All cars post 1988 are made to handle a 10% ethanol blend and perhaps a 20% blend. Don't forget about the 6 million E85 (85% Ethonal blend) capable vehicles on the road.
Ethanol demand will skyrocket, There will be a huge increase in production of ethanol and refineries. This will drive the market through the roof. Early investors will become quite wealthy.
Heres a small tidbit about refining Ethanol compared to Gasoline.
Gasoline distillation from petroleum must reach a tempature of 720 degrees F.
Ethanol distillation never gets above 212 degrees F the boiling point of water. It takes almost 3 times more energy to refine Gasoline. It takes 1 BTU of energy to produce 1 BTU's worth of Gasoline, thats just to refine it...
What fuel is normally used to produce all that heat? Coal and Natural Gas are used for both.