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Management Speaking Presentation #3

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Presentation discussing not using corn ethanol as a fuel additive.

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Management Speaking Presentation #3

  1. 1. Fuel or Food? Can we afford to ask the question? Kennis Wooten April 8, 2009
  2. 2. Corn based ethanol should not be produced as a additive for petroleum
  3. 3. Agenda • Industry Background • Why corn ethanol made sense • Why it is not the best source • Conclusion
  4. 4. Industry Background • Ethanol first used in 1908, Model-T • Energy Tax Act 1978 • $45B industry and growing • US capacity 7M gal./yr. • 77 plants under construction or expanding Source: e85.whipnet.net/ethanol.history; Inside F.E.R.C’s Gas Market Report
  5. 5. Industry Background • US largest corn exporter • US mandates – 36B gal./yr. of ethanol by 2022 • 15B gal. from corn – Currently 9B Source: e85.whipnet.net/ethanol.history;
  6. 6. Why it made sense • Renewable source of energy • Grown locally • Widely available • Reduces CO2 emissions • Positive energy balance - initially reported Source: www.ethanolrfa.org;
  7. 7. Why it is not the best now • Not driven by a free market economy • It takes away from the food supply and has neg. environmental impacts • It is not a substantial net-positive energy source
  8. 8. Why it is not the best now • Production doesn’t encourage a free market economy – Not consumer driven – Stiff penalties for not meeting demand – Corn growers receive $5B in Federal subsidies
  9. 9. Why it is not the best now • It takes away from the food source and destroys habitats – Cornell study found $1B impact to beef production – Export countries greatly impacted – Greater use of pesticides and fertilizer Source: www.news.cornell.edu
  10. 10. Why it is not the best now World food demand Source: Iowa State Univ. Center for Agricultural & Rural Development
  11. 11. Why it is not the best now Source: www.seattlepi.com
  12. 12. Why it is not the best now • It is not a substantial net-positive energy source – It takes more energy to produce than it makes. – CO2 emission reduction not as great as other sources. – Vehicles using ethanol get poorer mileage per gal.
  13. 13. Why it is not the best now Energy balance for various ethanol sources Source: National Geographic
  14. 14. Why it is not the best now CO2 Emissions for various ethanol sources Source: National Geographic
  15. 15. Why it is not the best now Source: Consumerreports.com
  16. 16. Conclusion • Corn ethanol is not the most effective fuel source • Not driven by a free-market economy • Greatly impacts an already stressed food supply • It’s all about balance • Just think Rube!

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