Before anyone really flies off the handle on this, let's look at the information:
Global arable land:
~13.5 million square km (~8.6 billion acres)
http://en.wikipedia.org/wiki/Arable_landEthanol production of that plant:
780 gal/acre (~3000L/acre)
NOTE: "depends on development of cellulostic technology" (which we haven't been able to scale up to mass production due to cost and throughput factors)
http://en.wikipedia.org/wiki/Ethanol_fuel#Efficiency_of_common_cropsSo total yearly ethanol production:
25.8 trillion liters/yr
Best case energy return on investment for cellulostic ethanol (achieved in the lab combined with energy requirements of cultivation etc. for grasses) ~5.4 (as in, the energy of the ethanol produced is 5.4x the energy you need to make it, so the actual energy you get out is equal to 5.4/(1+5.4) or~84%
("A 2008 study by the University of Nebraska found a 5.4 energy balance for ethanol derived specifically from switchgrass.[13][14] This estimate is better than in previous studies and according to the authors partly due to the larger size of the field trial (3-9 ha) on 10 farms.").
http://en.wikipedia.org/wiki/Ethanol_fuel_energy_balanceNote, world oil production has an energy return of >36 (97.3%)
So that nets us 21.8 trillion liters of ethanol
The energy density of ethanol is ~21 MJ/l
http://en.wikipedia.org/wiki/Alcohol_fuelSo that is: 4.6x10^20 J
Crude oil has an energy density of 6.1 GJ/barrel
http://en.wikipedia.org/wiki/Barrel_of_oil_equivalentAnd natural gas is 38.3 MJ/cubic meter
http://bioenergy.ornl.gov/papers/misc/energy_conv.htmlSo that amount of ethanol is equal to: 77 billion barrels of oil or 12 trillion cubic meters of natural gas.
Global oil production is 32billion barrels a year
http://en.wikipedia.org/wiki/List_of_countries_by_oil_productionworld natural gas production is 3.1 trillion cubic meters a year
http://en.wikipedia.org/wiki/List_of_countries_by_natural_gas_productionThat means the total gas+oil current production is equal to about 67% of the maximum theoretically possible from that grass, and closer to 100% when the conversion to heavier hydrocarbon fuels (required for >40-50% of oil and gas uses) and accounting for the greater transportation costs associated with the lower energy density of ethanol (assuming distributed production) or the greater transportation costs associated with the more spread-out feedstock (arable land is >100-1000 greater than the area we use for petroleum and gas production, so the concentration helps oil/gas in terms of transport cost)
In other words, even IF we could get cellulostic ethanol production scaled up (which, even with best possible estimates, would require a capital investment in just the refineries of 5-10 trillion dollars), AND planted that grass on every square foot of arable land ON EARTH (thus starving the entire planet...so that would probably cut down on usage, which isnt accounted for here) we would still only yield roughly the same amount of energy in the oil and gas we get TODAY.
Basically, biofuels are a niche, that only exists due to subsidy, and can't possibly grow to meet our current, let alone future, energy needs, even with an investment of >10% of the GLOBAL GDP.
As I've said before, the only long term energy future that can accommodate growth (I hope the third world becomes more like the 1st world in economics, which would require 5-6x increase in global energy production and raise the standard of living of everyone) is safe nuclear...and it requires the least land and is 100% carbon neutral. We also have sufficient uranium and thorium reserves at CURRENT prices, to last centuries, if not more.
Anyway, that's my $0.02 :)