- 12:35 AM CDT on Sunday, June 15, 2008
NOTE: Below is only an excerpt, but you can read the whole article by clicking the link above.
"I don't buy barrels of oil. So how does the price of oil affect me?
Everybody knows that oil is refined into the gasoline and diesel that fuels our vehicles. People might forget that plastics also come from oil. So when oil prices rise, you pay more at the pump and it costs more to transport goods. Plus, it costs more to manufacture anything made from or packaged in plastic. That covers just about everything Americans buy."
"What about corn prices, which are much higher? Is that because of oil?
There is an indirect connection. About 25 percent of the U.S. corn crop is going into corn-based ethanol – up from 11.5 percent in 2003. A key reason for increased ethanol production is the goal of reducing dependence on foreign oil, and cutting greenhouse-gas emissions. Rising ethanol production and increased demand for animal feed in developing nations help push up the price of corn."
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Not strictly about ethanol or E85, but it is a very good article about how everything is connected in the fuel versus food continuing battle.

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