"DUDE! ETHANOL IS CHEAPER THEN GASOLINE!!"
Gasoline has an energy content of 114,000 btu / gallon, and currently wholesales for $1.58 / gallon, or $13.86 / mmbtu. Ethanol has an energy content of 76,000 btu / gallon, and currently wholesales for $1.66 / gallon, or $21.84 / mmbtu. (http://en.wikipedia.org/wiki/Gasoline_gallon_equivalent http://www.eia.gov/todayinenergy/prices.cfm)
In other words, ethanol is currently 1.58 times more expensive than gasoline on an energy equivalent basis, even though corn and ethanol prices are at historically very low levels. In fact, corn ethanol and cellulosic ethanol have never in history been less expensive than gasoline.
As to your suggestion that the drop in ethanol prices caused the recent sharp drop in oil prices, the net energy yield of corn ethanol production is the energy equivalent of about 300,000 barrels of oil per day, or less than 10% of oil production from fracking in the U.S., and about one third of 1% of global oil consumption. The impact of corn ethanol production on oil price is insignificant, and is far more than offset by increased food prices.
Finally, as to your claim that cellulosic ethanol is starting to come online, I challenge you to produce a reliable reference stating the cost and eroei of cellulosic ethanol production.