Just a few statements to help balance out the argument...

On EROEI and petroleum inputs...

"A recent research paper produced in "Science" by Berkley scientists noted that ethanol was not only a net energy winner, but that it required very low petroleum inputs compared to gasoline -- about 30 times less. What is most interesting about the Berkley study is that cellulosic ethanol was directly competitive with petroleum itself -- producing 10 times more energy than the amount invested into it. What was ironic was that the Berkley study confirmed Pimentel's earlier analysis that it takes more energy to produce gasoline than gasoline itself contains. So while ethanol is a net energy winner by 30% for corn to 1000% for cellulose, the fuel that sits in your car sucks up some just to be synthesized."

On ethanol as a driver for high food prices...

"The US uses a staggering 30% of its corn for ethanol synthesis. Looking at this figure is intimidating and without understanding the process of modern ethanol synthesis from corn, it is easy to see why many would come to the conclusion that we are using far too much of our food as fuel. In truth, though, the process of ethanol synthesis is a bit more complex.

In processing ethanol, the starch part of the corn is removed and used for manufacturing ethanol. The other part, a high protein remainder, is removed and used as distillers grains in cattle feed. In this way, 30% of the corn and 90% of its protein is saved for use in feed for livestock. When it is taken into account that the kind of corn used for ethanol isn't even the type used for human consumption, it becomes a lot more difficult to implicate ethanol as the sole cause of rising food costs.

In a study by the US Department of Agriculture, use of corn in ethanol production accounted for barely 2% of the total rise in food costs over the past few years. The primary cause, by contrast, was the rising cost of oil which is used for transportation, fertilizer, and harvesting."

Ethanol's effect on fuel prices...

"Currently, according to Department of Energy figures, the US produces 570,000 barrels per day of ethanol. This volume of liquids displaces more than 6 percent of US daily oil imports. To put the volume of ethanol produced in the US in perspective, it would take approximately fifteen years of drilling in ANWR to produce a comparable volume of oil. Since we are importing less oil because of ethanol, it has a positive affect on the price of gasoline. A recent study estimated that without ethanol, gasoline prices at the pump would be 54 cents higher for every gallon. With average pump prices for regular at $4.03 per gallon, without ethanol you'd end up paying $4.57. Not only is this money saved by consumers within the US, it is also money that remains inside the US economy, generating wealth here rather than going to sovereign wealth funds overseas. In total, the 570,000 barrels per day of domestic ethanol displaces about 30 billion dollars in oil imports every year, while helping the US move closer to energy independence."

On ethanol's impact on water resources...

"Though the process of ethanol distillation involves water, most industrial processes do. For example, a cheeseburger consumes 1 gallon of water in the process of its production. According to a US Department of Agriculture study, ethanol takes between 3 and 5 gallons of water to produce one gallon of ethanol. And while this may seem like a lot of water, the process of producing gasoline is estimated to take between 4 and 7 gallons of water. In the end, ethanol is less of a strain on water resources than the fuel it competes with."

On new biofuels technology related to ethanol...

"The major focus of the ethanol industry at this point in time is diversifying and improving its feedstock base. The industry is looking to produce ethanol from cellulose and, to this end, is constructing a number of manufacturing facilities around the country. Furthermore, the industry is continuing to improve the types of corn used for ethanol production in order to yield both more energy and more grain for feeding livestock. Another initiative includes the use of more efficient crops like sorghum which produces a sugary liquid that is easier to refine."

Perhaps you should read the P&P study newland. Furthermore... you've been here long enough to have seen the excellent posts we've done on Brazilian cane->etoh production as well. I would recommend refreshing yourself with de Sousa's work.

Here's how ethanol is done properly:

Louisiana's governor Bobby Jindal has signed into law the Advanced Biofuel Industry Development Initiative, the most comprehensive and far-reaching state legislation in the United States, enacted to develop a statewide advanced biofuel industry. Louisiana is the first state to enact alternative transportation fuel legislation that includes a variable blending pump pilot program and a hydrous ethanol pilot program. The initiative will also give an efficiency boost to the ethanol industry in the state by supporting high yielding non-corn crops.

The legislature found that the proper development of an advanced biofuel industry in Louisiana requires implementation of the following comprehensive “field-to-pump” strategy (as developed by Renergie, Inc., which utilizes high yielding, water-efficient sweet sorghum).