Finding a cheaper, less intensive stock for ethanol would be a lot clearer if not for the market distortions created by the corn lobby.
Ethanol was first pitched to us as replacement for methyl tertiary butyl ether, which was vilified as a polluter of ground water (though it's leaky tanks that were the true villain) because ethanol is not water soluble. Then the corn lobby convinced us that corn ethanol was a perfect green alternative, dispute the fact that no one could make the numbers work. So now we have corn subsidies, ethanol subsidies and trade barriers on imported ethanol and feedstocks all propping up this sham.
On the flip side, US Oil Consumption is down from it's 2005-07 peak of around 20.7 MMBPD to only 18.5 MMBPD, so we are consuming nearly a billion less barrels of oil per year in the US. Meanwhile, US production is up from its 2005-06 low of 8.3 MMBPD of crude to 1985 levels of 11.2 MMBPD.
http://www.eia.gov/countries/country...fm?fips=US#pet
Glad I'm not in the oil business anymore.