Halp

Cheaper Ethanol from Brazil Could Cripple U.S. Producers

Good point Value Investor- The United States will always be an importer of energy. Its a global situation now and becoming isolationist is foolish, backward thinking.
We will always be an exporter and an importer.

I think whats important is to realize that a cohesive and comprehensive energy plan be developed and we must :

1)Diversify the types of energy we rely upon
(Ethanol, Electric, Oil, Hydro..etc)

2)Diversify the sources of that energy
(Oil from the Middle East, Ethanol from Brazil and Iowa!, Natural from Canada etc..)

3) Build into our future means of transportation the flexibility to use more than one source of fuel (Flex-Fuel vehicles ?)

4) Continue to develop celulosic ethanol so as not to be entirely tied to one source. ( What if the corn or sugar cane crop fail ? (or) if political instability in a region become an issue )

Regarding ethanol (corn, sugar cane or beet) which will NEVER replace oil entirely, the future appears to be cellulosic.
"Given sufficient investment in research, development, demonstration and deployment, the report projects biorefineries producing cellulosic ethanol at a cost leaving the plant between $.59-$.91 per gallon by 2015. The price range is dependent upon plant scale and efficiency factors. At these prices, biofuels would be competitive with the wholesale price of gasoline".