i guess E85 is 85% gasoline and 15% ethanol, or is it the opposite?
if one can get ethanol from waste biomass rather than from sugarcane, its costs will go up. compare this to the numbers in an earlier post here which looked at the cost of setting up sugarcane farms on a large scale.
also the other thing that as craig ventner said that scientists need to do is to come up with non-oil based feedstock for a lot of plastics.
i remember that during ww2, the japanese made oil out of rubber (they had malaya's rubber in hand, but no oil).
the americans made rubber out of oil (they had oil wells, but no rubber).
i guess they could have just traded :-)