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But, you need to remember that the majority of the ethanol that PEIX hopes to produce is destined to replace the MTBE in CA's gasoline, not become E85. Also, for a more recent study on the energy balance of ethanol, this makes an interesting read. http://www.transportation.anl.gov/pdfs/AF/265.pdf

I'm not saying that PEIX is currently a good investment beyond speculation, but if they can get the process refined (no pun intended,) I don't see corn crops (or weather) being a whole lot more volatile than half of the OPEC member nations.
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