Global Energy Facts and Economic Incentives for Renewable Fuels

1. ENERGY FACTS In 2001, the United States imported over 11.6 million barrels (487 million gallons) of petroleum per day.

2. Estimated Oil Reserves Around the World • Areas with largest reserves • Middle East • Central and South America • Africa • Former Soviet Union

3. Energy Security • Oil imports make up about 57% of total transportation fuel use.  The Energy Information Agency expects this to increase to 68% by 2025. • About 80% of the world’s proven oil reserves are in the unstable Middle East. • The U.S. spends about $50 billion each year for military protection of Middle East oil. • Tripling current ethanol use could replace 600,000 barrels of crude oil each day, which is equivalent to the amount imported from Iraq on a daily basis.

4. Economic Incentives for Renewable Fuels • Consumers could save approximately $7.8 billion between 2002 and 2016 in the form of reduced government farm payments by expanding their purchases of renewable fuels. • Ethanol production provides more than 200,000 U.S. jobs, spurring growth in many rural areas. • Over 300,000 new jobs could be created during the next 15 years through expanded production and use of renewable ethanol blends.

5. Economic Incentives for Renewable Fuels • Ethanol production helps boost U.S. farm income by $4.5 billion per year. • Increased use of renewable fuels, such as ethanol, could provide an additional $6.6 billion of net cash income per year for America’s farmers.

6. References • U.S. Department of Energyhttp://www.energy.gov • Open Universityhttp://www.open.ac.uk/T206/illustrations/figure1_15a.htm • Iowa Cornhttp://www.iowacorn.org

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