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Ethanol is a cleaner-burning fuel made from corn, other grains, and
dairy, beer and other wastes instead of petroleum.
Have questions about ethanol? Need verification for news stories?
Contact: Larry Bean
Phone: 515-281-4308 || Fax: 515-281-6794
Published by the 21-state Governors' Ethanol Coalition, P.O. Box 95085, Lincoln, NE
68509
Phone 402-471-2867, Fax 402-471-3064
Internet http://www.ethanol-gec.org
Is America's Persian Gulf Policy Worth the Cost?
$40 Billion A Year for $11 Billion in Oil
As Congress considers ways to reduce the nation's defense spending, more than one voice in
Washington (Senator Ted Stevens is one) has suggested that America's Persian Gulf policy --
providing a defense for Gulf States in exchange for stable, but moderate oil prices -- should be
reconsidered.
For starters, who imported the most Persian Gulf oil in 1996?
- European nations imported more than five million barrels of oil daily at a
yearly cost of $36.2 billion (at an average 1996 price of $19.39 per barrel)
according to the Energy Information Administration.
- Japan imported more than four million barrels of oil daily at a yearly cost of
$28.49 billion.
- America imported about 1.6 million barrels of oil daily at a yearly cost of
$11.27 billion.
In April, Associated Press estimated the U.S. had 20,000 troops, 20-35 navy warships and more
than 200 aircraft in the Persian Gulf region at a yearly cost of $40 billion.
A Foreign Affairs article put the yearly tab at $30-$60 billion and stated,
"...Americans pay what amounts to a substantial hidden gasoline tax that Europeans and
Japanese benefitting from American willingness to 'carry the burden,' largely escape. And other
Western countries are unlikely to take up that burden on a permanent basis since few European
policymakers view a military presence in the Gulf as necessary to ensure that the oil keeps
flowing."1
The President of the Petroleum Industry Research Foundation recently said, "...nobody would
honestly say the Middle East is more secure today than it was a decade
ago."3
America could reduce its reliance on Persian Gulf oil even more -- a mere 23.8 gallons of
ethanol displace one barrel of oil.
1 Foreign Affairs, "Persian gulf Myths," May/June 1997.
2 New York Times, April 20, 1997.
3 New York Times, January 26, 1997.
Governors' Ethanol Coalition
P.O. Box 95085
Lincoln, Nebraska 68509-5085
(402) 471-2867 phone || (402) 471-3064 FAX