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A New Step in the Ethanol Revolution?

June 7, 2007

This week in a Special Outside the Box we look at the discussion of alternative energy sources, specifically, ethanol derived from corn or sugarcane. The Stratfor piece discusses the economic implications of ethanol usage; geopolitical ramifications in terms of how current oil producers will be affected, comparable cost advantages between corn and sugarcane processing, and the advantages and disadvantages of ethanol production and consumption.

OPEC has expressed concern over capital allocated to alternative energy research, suggesting, implicitly threatening, that oil producers may be driven to lessen investment in vital infrastructure leading to supply constraints in the future and higher oil prices. If the assertions emanating from Brazilian government-funded researchers are confirmed to be true, the viability and time frame in which ethanol usage becomes economically feasible has made great strides, and shortened, respectively.

This Stratfor piece is an objective, thought provoking assessment of technology that will have drastic implications on our global economic and geopolitical landscape. Stratfor continues to provide insightful and pertinent research on economic and geopolitical events and their respective ramifications. Stratfor continues to provide significant savings to readers of Outside the Box, for further information please click here.

I hope you find this article enlightening and thought provoking as we continue to address the implications of alternative energy resources.