It shouldn’t surprise anyone when an energy industry CEO paying more than $20 billion to grow the oil and gas holdings of his company is not a fan of ethanol as a motor fuel.

But Anadarko CEO Jim Hackett has his reasons for calling the corn-derived fuel “a ridiculous plan for solving energy issues in America.” During a Friday teleconference with reporters to discuss his company’s acquisition of Kerr-McGee Corp. and Western Gas Resources Inc., Hackett fielded a question from a reporter who admittedly wanted to wind him up on the issue.

“I’m frustrated, frankly, because as a citizen, not as an energy executive, I’m disappointed that we don’t spend time talking about the really big issues. We get distracted by some of the silliest things,” Hackett said.

One such trifle is ethanol. It may be God-given nectar to many a Midwest farmer, Hackett would more likely call it hemlock. “We are touting a fuel that I think is an agricultural subsidy, mostly, that is not good for consumers,” he said.

While ethanol as a motor fuel is touted as a means of reducing carbon emissions, Hackett said its proponents neglect to mention that it also is a significant source of nitrogen oxide. “Nobody talks about the nitrogen oxide emissions.”

Also up for debate is the energy benefit of the fuel; does it take more energy to make than it later produces? “There are varying degrees of comfort with its energy intensity…ranging from people thinking it consumes as much as three times what it gives, to people who view it as giving up to 30% more than what it takes. I’m willing to do the half-point there, which tells you that you consume more energy than you actually produce by making ethanol.”

Hackett lamented that the U.S. corn industry is being converted to an ethanol industry through the application of unwise government subsidies. “I think corn prices will go up just like sugar prices have gone up around the world as the sugar cane industry is starting to be converted to ethanol. These are very energy-intensive products to be producing gasoline-equivalents from.”

But that’s not to say that Hackett is opposed to oil alternatives. For instance, he said he would support a “moon-shot” type program to commercialize other biomass sources, such as switch grasses and stalks. Further, nuclear is OK with him, as are coal-to-liquids and coal-to-gas.

“Don’t try to snow [people] that ethanol is some great wonderful answer when you’re making them pay $5 a gallon for it. The reason why they don’t notice it is it’s only 10% of the fuel mix now. And yet you have most of the Congress, as well as some industry players on the car side, who are running scared, who are saying we ought to have E85 [85% ethanol]. What a ridiculous plan for solving energy issues in America. We couldn’t produce that much ethanol if we wanted to.”

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