Mex,
Brazil ended up using ethanol because most of their oil production was off shore and they had not been able to develop it fully and they maximized the profits by selling to American refineries. Today Brazil still exports most of their oil production. The other primary reasons for ethanol production in Brazil were that sugar cane grew very well in their climate and they had an inexpensive, abundant workforce. These workers were the campesinos. As close to slave labor as you can get with out actual ownership of the individual.