The oil price will drop because we will use less oil if we aren't using it to farm and distill ethanol.
I tried researching oil used for farming in the United States. Agriculture oil use isn’t enough for the US Department of Energy to track separately. All energy used in the USA such as Natural Gas, Electricity, Gasoline, Diesel, LP, etc plus all the energy inputs for farm chemicals such as fertilizers came to farming using 2% total of the energy produced in America.
How much of a drop you think we would see in price?
“The oil price will drop because we will use less oil if we aren’t using it to farm and distill ethanol. “
I have seen a study cited several times now that says it takes 1.3 barrels of oil to make the ethanol energy equivalent of one barrel of oil.
The subsidies, as they always do, are distorting the markets, and should be done away with.