* Expansion of corn ethanol industries is increasing its viability. Despite continuing doubts about whether corn ethanol provides a genuine energy savings, in the United States alone, at least 39 new ethanol plants are expected to be completed over the next 9 to 12 months. The new plants will add 1.4 billion gallons a year, a 30 percent increase over current production of 4.6 billion gallons, according to Dan Basse, president of AgResources, an economic forecasting firm in Chicago. By 2008, analysts predict ethanol output could reach 8 billion gallons a year.
* Ethanol is economically beneficial Corn ethanol is economically beneficial in numerous ways. In general, any new fuel is a valuable contribution to energy security and the price-competition between various energy sources. This generally benefits consumers. In addition, the new corn ethanol industry creates jobs in numerous industries, including biotechnology and chemistry sectors.
* Corn ethanol is competitive against high oil prices Ethanol is economically competitive against rising oil prices. In the long-run, with gasoline reserves running out and energy demand growing, gasoline prices are set to rise exponentially. Corn ethanol prices, on the other hand have a long-term trajectory of dropping. This is because corn ethanol supply will only increase in the coming decades as the industry expands.