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July 2, 2008

As biofuels soar in popularity, the cost of filling Americans’ gas tanks could be influenced as much by hail in Iowa as by the bombing of an oil pipeline in Nigeria. - Inspired by Jad Mouawad, The New York Times

As corn becomes an increasingly important source of fuel for America, it opens itself up the mercy of the weather. "The floods (through the Midwest) have helped send the price of ethanol up 19 percent in a month. They appear to have had little effect on the price of gasoline at the pump, as ethanol represents only about 6 percent of the nation’s transport fuel today. But that share is expected to rise to at least 20 percent in coming decade," writes Jad Mouawad of The New York Times. The price of ethanol has practically doubled since touching $1.50 a gallon in September.

Mouawad reports that biofuel supporters continue to stand in favor of ethanol, arguing that the increasing supply is maintaining a check on gas prices (which could be rising at a much faster rate). They also maintain that in the future ethanol could be derived from materials that are resistant to bad weather – such as wood chips and switchgrass.

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