the problem is the Expensing of intangible drilling costs should be treated like any other business but they are not
The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. ... and should be deducted as such However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest.
https://www.irs.gov/publica...
http://www.crfb.org/blogs/t...
http://www.mrzllp.com/blog/...
http://www.oilandgasjointve...
http://www.ipaa.org/wp-cont...
yes these costs should be deductible as any business cost however the costs can be treated differently then other business ... the point being is ethanol does not have this tax break thus a subsidy