U.S. Gas Woes: Can Brazil Teach Us a Lesson?
By Charlene Israel
CBN News Assoc. Producer
CBN.com – (CBN News) - Politicians and Americans are trying to find any kind of solution for those high pump prices.
Some are saying that the United States should research alternative energy sources. After all, Brazil did just that back in the 1970s, and it is paying dividends now.
When Americans fill their gas tanks, they usually get a blend that is 90 percent gasoline and 10 percent ethanol, made from corn.
Not so in Brazil. Brazilian drivers get what they call "white gold" – pure, high-octane ethanol made from sugar cane. Brazil produces five billion gallons a year, enough to power half of Brazil’s cars.
And it only costs about $30 a barrel to produce, about half the current cost of a barrel of oil.
At the Brazilian pump, ethanol is cheaper, burns cleaner, and is the leading reason that country no longer buys any foreign oil.
But the switch from gasoline to ethanol was not easy, and the government had to work hard to persuade drivers that ethanol was the fuel of the future.
Gasoline dealers were forced to offer ethanol at all their pumps. And car buyers got tax incentives to purchase flex-cars, built with technology to run on ethanol, gasoline, or any mix of the two.
The result: ethanol now outsells gasoline in Brazil, and three out of four new cars are flex-cars.
The United States has made some progress with ethanol. But here the focus has been on corn-based fuel, which is more expensive to produce. The U.S. is still decades behind Brazil on this alternative energy front.
Brazil is saving millions of gallons of gasoline every year and has shown the world that energy independence is a realistic goal.
By Charlene Israel
CBN News Assoc. Producer
CBN.com – (CBN News) - Politicians and Americans are trying to find any kind of solution for those high pump prices.
Some are saying that the United States should research alternative energy sources. After all, Brazil did just that back in the 1970s, and it is paying dividends now.
When Americans fill their gas tanks, they usually get a blend that is 90 percent gasoline and 10 percent ethanol, made from corn.
Not so in Brazil. Brazilian drivers get what they call "white gold" – pure, high-octane ethanol made from sugar cane. Brazil produces five billion gallons a year, enough to power half of Brazil’s cars.
And it only costs about $30 a barrel to produce, about half the current cost of a barrel of oil.
At the Brazilian pump, ethanol is cheaper, burns cleaner, and is the leading reason that country no longer buys any foreign oil.
But the switch from gasoline to ethanol was not easy, and the government had to work hard to persuade drivers that ethanol was the fuel of the future.
Gasoline dealers were forced to offer ethanol at all their pumps. And car buyers got tax incentives to purchase flex-cars, built with technology to run on ethanol, gasoline, or any mix of the two.
The result: ethanol now outsells gasoline in Brazil, and three out of four new cars are flex-cars.
The United States has made some progress with ethanol. But here the focus has been on corn-based fuel, which is more expensive to produce. The U.S. is still decades behind Brazil on this alternative energy front.
Brazil is saving millions of gallons of gasoline every year and has shown the world that energy independence is a realistic goal.
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