News Flash - Saudis Denounce Ethanol

In an unpredictable twist, Saudi Arabia’s Minister of Petroleum and Mineral Resources is denouncing ethanol as an alternative to petroleum-based motor fuels.

During an appearance in Paris, Minister Ali bin Ibrahim Al-Naimi said:

“Let’s be realistic, ethanol and biofuels will not contribute to the protection of the global environment by reducing (carbon dioxide) emissions, they will not increase energy security, nor will they reduce dependency on fossil fuels to any appreciable degree.”

All sarcasm aside, Minister Al-Naimi’s dismissal of ethanol is just the latest in a long line of similar remarks by those in control of the world’s oil resources. Clearly, the fact that the Energy Information Administration (EIA) estimates that increased ethanol use will help reduce US petroleum consumption 90,000 barrels per day in 2008 is beginning to strike a nerve.

Responding on behalf of the US ethanol industry, Renewable Fuels Association President Bob Dinneen challenged Minister Al-Naimi’s assertions about the energy, economic and environmental impacts of ethanol.

“For the Saudi Oil Minister to assert that biofuels are not an effective energy alternative is no different from the wolf complaining that Little Red Riding Hood was interrupting his dinner plans,” Dinneen wrote. “As a leader of a country that opposes strict limits on carbon emissions and favors continued expansion of petroleum production, it is not surprising that you express opposition to the development of biofuels.”

“What is also galling about your statement is the claim that biofuels negatively impact the ‘food market.’ The evidence demonstrates that the number one negative impact on the food market is the high price of your primary export – oil,” he continues. “One hundred dollar per barrel oil has driven up the cost of everything from fertilizer to diesel oil used to transport food, to plastics used in food packaging.”

Read Dinneen’s full letter here.