Absolutely. The current general ratio for the ethanol is about a 1.4:1 gain over the energy inputs to grow, harvest, ship, and manufacture the ethanol. So we get 40% more energy out than we put in. The oil industry itself only operates at a 0.88:1 ratio, when accounting for all its energy inputs. Individual ethanol producers will operate above or below the industry average. The newer plants are findings significant efficiency gains and I expect to see a 2:1 ratio in the next 5 years. There's a lot of innovation going on.

The chief critics of the ethanol industry get a lot of press, but their actual data has been soundly debunked. Pimental is the chief critic that gets a lot of air play. But his data is based on corn yields and conversion rates from the 1970s. He typically cites himself in his non-peer reviewed studies.

Further, if you talk to the ethanol industry, they see cellulosic ethanol as the main source in the future. Cellulosic ethanol is based on the non-starch biomass (like switchgrass or corn stalks). The key challenge is the economics of converting cellulose to sugars for fermentation. There is a lot of research effort in this area. Energy ratios will go up significantly with cellulosic ethanol. So we should view the current ways we produce ethanol as a transition period, not an end to itself.