How to recover passwords "CISCO"

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Parent Categories: Cisco / Router / Cisco-other-l / Cisco-wireless-l / Cisco-infrastructure-l / HOWTOs
Cisco Router Password Recovery (24,945 views)
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Contents
[Hide TOC]

* 1 Introduction
* 2 Steps
* 3 Examples
* 4 Conclusion

[edit]
Introduction

This 'How to' is written to show the step by step password recovery of the Cisco Routers. It is assumed that you have a prior knowledge of what a router is and its basic function. It is also assumed the you are having some experience of configuring the router.

Please do not follow the step if you are a new to Routers, as this can damage the IOS or any physical interface of the router.

After reading the topic you will be able to easily recover the password of the router.


[edit]
Steps

To recover your password, complete these steps:

1. Attach a terminal or PC with terminal emulation to the console port of the router.

Use these terminal settings:
* 9600 baud rate
* No parity
* 8 data bits
* 1 stop bit
* No flow control

2. If you still have access to the router, type show version , and record the setting of the configuration register. It is usually 0x2102 or 0x102.

EXAMPLE

Router>show version

Cisco Internetwork Operating System Software IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2) Copyright (c) 1986-1999 by cisco Systems, Inc. Compiled Tue 07-Dec-99 02:21 by phanguye Image text-base: 0x80008088, data-base: 0x80C524F8

ROM: System Bootstrap, Version 11.3(2)XA4, RELEASE SOFTWARE (fc1)

Router uptime is 3 minutes System returned to ROM by abort at PC 0x802D0B60 System image file is "flash:c2600-is-mz.120-7.T"

cisco 2611 (MPC860) processor (revision 0x202) with 26624K/6144K bytes of memory. Processor board ID JAB031202NK (3878188963) M860 processor: part number 0, mask 49 Bridging software. X.25 software, Version 3.0.0. Basic Rate ISDN software, Version 1.1. 2 Ethernet/IEEE 802.3 interface(s) 2 Serial(sync/async) network interface(s) 1 ISDN Basic Rate interface(s) 32K bytes of non-volatile configuration memory. 8192K bytes of processor board System flash partition 1 (Read/Write) 8192K bytes of processor board System flash partition 2 (Read/Write)

Configuration register is 0x2102

3. If you do not have access to the router (because of a lost login or TACACS password), you can safely consider that your configuration register is set to 0x2102.

4. Use the power switch to turn off the router, and then turn it back on.

Important: To simulate step 4 on a Cisco 6400, pull out and then replace the Node Route Processor (NRP) or Node Switch Processor (NSP) card.

Important: To simulate step 4 on a Cisco 6x00 using NI-2, pull out and then replace the NI-2 card.

5. Press Break on the terminal keyboard within 60 seconds of the power-up to put the router into ROMMON.

If the break sequence does not work, see for other Standard Break Key Sequence Combinations During Password Recovery for other key combinations.

6. Type confreg 0x2142 at the rommon 1> prompt to boot from Flash without loading the configuration.

7. Type reset at the rommon 2> prompt.

The router reboots but ignores its saved configuration.

8. Type no after each setup question or press Ctrl-C to skip the initial setup procedure.

9. Type enable at the Router> prompt.

You are taken to the enable mode, and the Router# prompt appears.

10. Important: Type configure memory or copy startup-config running-config to copy the nonvolatile RAM (NVRAM) into memory.

Do not type configure terminal .

11. Type write terminal or show running-config .

The show running-config and write terminal commands show the configuration of the router. In this configuration you see under all the interfaces the shutdown command, which means all interfaces are currently shutdown. Also, you can see the passwords (enable password, enable secret, vty, console passwords, and so on) either in encrypted or unencrypted format. The unencrypted passwords can be re-used, the encrypted ones will have to be changed with a new one.

12. Type configure terminal and make the changes. The prompt is now hostname(config)#.

13. Type enable secret to change the enable secret password, for example.

14.Issue the no shutdown command on every interface that is used. If you issue a show ip interface brief command, every interface that you want to use should be "up up".

15. Type config-register 0x2102, or the value you recorded in step 2.

16. Press Ctrl-Z or end to leave the configuration mode. The prompt is now changed to hostname#.

17. Type write memory or copy running-config startup-config to commit the changes.


[edit]
Examples

Example of Password Recovery Procedure

The example in this section presents an actual password recovery procedure. I used a Cisco 2600 to create this example. Even if you do not use a Cisco 2600, this example will be almost exactly what you experience on your product.

Router>enable
Password:
Password:
Password:
% Bad secrets

Router>show version
Cisco Internetwork Operating System Software
IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2)
Copyright (c) 1986-1999 by cisco Systems, Inc.
Compiled Tue 07-Dec-99 02:21 by phanguye
Image text-base: 0x80008088, data-base: 0x80C524F8

ROM: System Bootstrap, Version 11.3(2)XA4, RELEASE SOFTWARE (fc1)

Router uptime is 3 minutes
System returned to ROM by abort at PC 0x802D0B60
System image file is "flash:c2600-is-mz.120-7.T"

cisco 2611 (MPC860) processor (revision 0x202) with 26624K/6144K bytes of memory.
Processor board ID JAB031202NK (3878188963)
M860 processor: part number 0, mask 49
Bridging software.
X.25 software, Version 3.0.0.
Basic Rate ISDN software, Version 1.1.
2 Ethernet/IEEE 802.3 interface(s)
2 Serial(sync/async) network interface(s)
1 ISDN Basic Rate interface(s)
32K bytes of non-volatile configuration memory.
8192K bytes of processor board System flash partition 1 (Read/Write)
8192K bytes of processor board System flash partition 2 (Read/Write)

Configuration register is 0x2102

Router>


!--- The router was just powercycled and during bootup a
!--- break sequence was sent to the router.

!

*** System received an abort due to Break Key ***

signal= 0x3, code= 0x500, context= 0x813ac158
PC = 0x802d0b60, Vector = 0x500, SP = 0x80006030
rommon 1 > confreg 0x2142

You must reset or power cycle for new config to take effect

rommon 2 > reset

System Bootstrap, Version 11.3(2)XA4, RELEASE SOFTWARE (fc1)
Copyright (c) 1999 by cisco Systems, Inc.
TAC:Home:SW:IOS:Specials for info
C2600 platform with 32768 Kbytes of main memory


program load complete, entry point: 0x80008000, size: 0x6fdb4c

Self decompressing the image : ###############################
##############################################################
##############################################################
##############################################################
############################### [OK]


Restricted Rights Legend

Use, duplication, or disclosure by the Government is
subject to restrictions as set forth in subparagraph
(c) of the Commercial Computer Software - Restricted
Rights clause at FAR sec. 52.227-19 and subparagraph
(c) (1) (ii) of the Rights in Technical Data and Computer
Software clause at DFARS sec. 252.227-7013.

cisco Systems, Inc.
170 West Tasman Drive
San Jose, California 95134-1706

Cisco Internetwork Operating System Software
IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2)
Copyright (c) 1986-1999 by cisco Systems, Inc.
Compiled Tue 07-Dec-99 02:21 by phanguye
Image text-base: 0x80008088, data-base: 0x80C524F8

cisco 2611 (MPC860) processor (revision 0x202) with 26624K/6144K bytes of memory.
Processor board ID JAB031202NK (3878188963)
M860 processor: part number 0, mask 49
Bridging software.
X.25 software, Version 3.0.0.
Basic Rate ISDN software, Version 1.1.
2 Ethernet/IEEE 802.3 interface(s)
2 Serial(sync/async) network interface(s)
1 ISDN Basic Rate interface(s)
32K bytes of non-volatile configuration memory.
8192K bytes of processor board System flash partition 1 (Read/Write)
8192K bytes of processor board System flash partition 2 (Read/Write)


--- System Configuration Dialog ---

Would you like to enter the initial configuration dialog? [yes/no]: n

Press RETURN to get started!

00:00:19: %LINK-3-UPDOWN: Interface BRI0/0, changed state to up
00:00:19: %LINK-3-UPDOWN: Interface Ethernet0/0, changed state to up
00:00:19: %LINK-3-UPDOWN: Interface Ethernet0/1, changed state to up
00:00:19: %LINK-3-UPDOWN: Interface Serial0/0, changed state to down
00:00:19: %LINK-3-UPDOWN: Interface Serial0/1, changed state to down
00:00:20: %LINEPROTO-5-UPDOWN: Line protocol on Interface BRI0/0,
changed state to down
00:00:20: %LINEPROTO-5-UPDOWN: Line protocol on Interface Ethernet0/0,
changed state to up
Router>
00:00:20: %LINEPROTO-5-UPDOWN: Line protocol on Interface Ethernet0/1,
changed state to up
00:00:20: %LINEPROTO-5-UPDOWN: Line protocol on Interface Serial0/0,
changed state to down
00:00:20: %LINEPROTO-5-UPDOWN: Line protocol on Interface Serial0/1,
changed state to down
00:00:50: %SYS-5-RESTART: System restarted --
Cisco Internetwork Operating System Software
IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2)
Copyright (c) 1986-1999 by cisco Systems, Inc.
Compiled Tue 07-Dec-99 02:21 by phanguye
00:00:50: %LINK-5-CHANGED: Interface BRI0/0,
changed state to administratively down
00:00:52: %LINK-5-CHANGED: Interface Ethernet0/0,
changed state to administratively down
00:00:52: %LINK-5-CHANGED: Interface Serial0/0,
changed state to administratively down
00:00:52: %LINK-5-CHANGED: Interface Ethernet0/1,
changed state to administratively down
00:00:52: %LINK-5-CHANGED: Interface Serial0/1,
changed state to administratively down
00:00:53: %LINEPROTO-5-UPDOWN: Line protocol on Interface Ethernet0/0,
changed state to down
00:00:53: %LINEPROTO-5-UPDOWN: Line protocol on Interface Ethernet0/1,
changed state to down
Router>
Router>enable
Router#copy startup-config running-config
Destination filename [running-config]?
1324 bytes copied in 2.35 secs (662 bytes/sec)
Router#
00:01:24: %LINEPROTO-5-UPDOWN: Line protocol on Interface BRI0/0:1,
changed state to down
00:01:24: %LINEPROTO-5-UPDOWN: Line protocol on Interface BRI0/0:2,
changed state to down
Router#configure terminal
Enter configuration commands, one per line. End with CNTL/Z.
Router(config)#enable secret < password > [Choose a strong password with at least one capital letter, one number, and one special character.]
Router(config)#^Z
00:01:54: %SYS-5-CONFIG_I: Configured from console by console
Router#show ip interface brief

Interface IP-Address OK? Method Status Protocol
Ethernet0/0 10.200.40.37 YES TFTP administratively down down
Serial0/0 unassigned YES TFTP administratively down down
BRI0/0 193.251.121.157 YES unset administratively down down
BRI0/0:1 unassigned YES unset administratively down down
BRI0/0:2 unassigned YES unset administratively down down
Ethernet0/1 unassigned YES TFTP administratively down down
Serial0/1 unassigned YES TFTP administratively down down
Loopback0 193.251.121.157 YES TFTP up up
Router#configure terminal
Enter configuration commands, one per line. End with CNTL/Z.
Router(config)#interface Ethernet0/0
Router(config-if)#no shutdown
Router(config-if)#
00:02:14: %LINK-3-UPDOWN: Interface Ethernet0/0, changed state to up
00:02:15: %LINEPROTO-5-UPDOWN: Line protocol on Interface Ethernet0/0,
changed state to up
Router(config-if)#interface BRI0/0
Router(config-if)#no shutdown
Router(config-if)#
00:02:26: %LINK-3-UPDOWN: Interface BRI0/0:1, changed state to down
00:02:26: %LINK-3-UPDOWN: Interface BRI0/0:2, changed state to down
00:02:26: %LINK-3-UPDOWN: Interface BRI0/0, changed state to up
00:02:115964116991: %ISDN-6-LAYER2UP: Layer 2 for Interface BR0/0,
TEI 68 changed to up
Router(config-if)#^Z
Router#
00:02:35: %SYS-5-CONFIG_I: Configured from console by console
Router#copy running-config startup-config
Destination filename [startup-config]?
Building configuration...
[OK]
Router#show version
Cisco Internetwork Operating System Software
IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2)
Copyright (c) 1986-1999 by cisco Systems, Inc.
Compiled Tue 07-Dec-99 02:21 by phanguye
Image text-base: 0x80008088, data-base: 0x80C524F8

ROM: System Bootstrap, Version 11.3(2)XA4, RELEASE SOFTWARE (fc1)

Router uptime is 3 minutes
System returned to ROM by abort at PC 0x802D0B60
System image file is "flash:c2600-is-mz.120-7.T"

cisco 2611 (MPC860) processor (revision 0x202) with 26624K/6144K bytes of memory.
Processor board ID JAB031202NK (3878188963)
M860 processor: part number 0, mask 49
Bridging software.
X.25 software, Version 3.0.0.
Basic Rate ISDN software, Version 1.1.
2 Ethernet/IEEE 802.3 interface(s)
2 Serial(sync/async) network interface(s)
1 ISDN Basic Rate interface(s)
32K bytes of non-volatile configuration memory.
8192K bytes of processor board System flash partition 1 (Read/Write)
8192K bytes of processor board System flash partition 2 (Read/Write)

Configuration register is 0x2142

Router#configure terminal
Enter configuration commands, one per line. End with CNTL/Z.
Router(config)#config-register 0x2102
Router(config)#^Z
00:03:20: %SYS-5-CONFIG_I: Configured from console by console

Router#show version
Cisco Internetwork Operating System Software
IOS (tm) C2600 Software (C2600-IS-M), Version 12.0(7)T, RELEASE SOFTWARE (fc2)
Copyright (c) 1986-1999 by cisco Systems, Inc.
Compiled Tue 07-Dec-99 02:21 by phanguye
Image text-base: 0x80008088, data-base: 0x80C524F8

ROM: System Bootstrap, Version 11.3(2)XA4, RELEASE SOFTWARE (fc1)

Router uptime is 3 minutes
System returned to ROM by abort at PC 0x802D0B60
System image file is "flash:c2600-is-mz.120-7.T"

cisco 2611 (MPC860) processor (revision 0x202) with 26624K/6144K bytes of memory.
Processor board ID JAB031202NK (3878188963)
M860 processor: part number 0, mask 49
Bridging software.
X.25 software, Version 3.0.0.
Basic Rate ISDN software, Version 1.1.
2 Ethernet/IEEE 802.3 interface(s)
2 Serial(sync/async) network interface(s)
1 ISDN Basic Rate interface(s)
32K bytes of non-volatile configuration memory.
8192K bytes of processor board System flash partition 1 (Read/Write)
8192K bytes of processor board System flash partition 2 (Read/Write)

Configuration register is 0x2142 (will be 0x2102 at next reload)

Router#


[edit]
Conclusion

This is how you will be able to recover the password of Cisco Router.
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How to configure the cisco router.

http://pages.swcp.com/~jgentry/topo/cisco.htm
Contents
1. What's covered
2. Getting started
3. Cisco Router Configuration
3.1 Global configuration
3.2 Configuring interfaces
3.3 Routing
3.4 Saving your configuration
3.5 Example configuration
4. Troubleshooting
5. References
6. More information


Creative Commons License
This work is licensed under a Creative Commons License.
PDF version now available at lulu.com.
Cisco Router Configuration Tutorial

Josh Gentry, jgentry@swcp.com
v.1.3, 30 April, 2006

This document covers basic Cisco router IP configuration using the command-line interface


Acknowledgments
The following sources where extremely useful:

* Leinwand, Pinsky, and Culpepper. Cisco Router Configuration. Indianapolis, Indiana: Cisco Press, 1998.
* Cisco Systems, Inc., http://www.cisco.com

Disclaimer
This document carries no explicit or implied warranty. Nor is there any guarantee that the information contained in this document is accurate. It is offered in the hopes of helping others, but you use it at your own risk. The author will not be liable for any damages that occur as a result of using this document.

Conventions
Important terms and concepts, when they are introduced, may be displayed in bold. Commands included in the body of the text will be displayed in this font. All names and addresses used in examples are just that, examples, and should not be used on your network. Do not type them in verbatim when configuring your system. Finally, in some examples where the command rquires an IP address as an argument, the IP address may be represented in this way, xx.xx.xx.xx, or aa.bb.cc.dd. You will never actually use these strings when configuring your system. They are mearly a convention of this document to specify that you should substitute the appropriate IP address at that point.
1. What this document covers

There are several methods available for configuring Cisco routers. It can be done over the network from a TFTP server. It can be done through the menu interface provided at bootup, and it can be done from the menu interface provided by using the command setup. This tutorial does not cover these methods. It covers configuration from the IOS command-line interface only. Useful for anyone new to Cisco routers, and those studying for CCNA.

Note that this tutorial does not cover physically connecting the router to the networks it will be routing for. It covers operating system configuration only.
1.1 Reasons for using the command-line

The main reason for using the command-line interface instead of a menu driven interface is speed. Once you have invested the time to learn the command-line commands, you can perform many operations much more quickly than by using a menu. This is basically true of all command-line vs. menu interfaces. What makes it especially efficient to learn the command-line interface of the Cisco IOS is that it is standard across all Cisco routers. Also, some questions on the CCNA exam require you to know command-line commands.
2. Getting started with Cisco

Initially you will probably configure your router from a terminal. If the router is already configured and at least one port is configured with an IP address, and it has a physical connection to the network, you might be able to telnet to the router and configure it across the network. If it is not already configured, then you will have to directly connect to it with a terminal and a serial cable. With any Windows box you can use Hyperterminal to easily connect to the router. Plug a serial cable into a serial (COM) port on the PC and the other end into the console port on the Cisco router. Start Hyperterminal, tell it which COM port to use and click OK. Set the speed of the connection to 9600 baud and click OK. If the router is not on, turn it on.

If you wish to configure the router from a Linux box, either Seyon or Minicom should work. At least one of them, and maybe both, will come with your Linux distribution.

Often you will need to hit the Enter key to see the prompt from the router. If it is unconfigured it will look like this:
Router>

If it has been previously configured with a hostname, it will look like this:
hostname of router>

If you have just turned on the router, after it boots it will ask you if you wish to begin initial configuration. Say no. If you say yes, it will put you in the menu interface. Say no.
2.1 Modes

The Cisco IOS command-line interface is organized around the idea of modes. You move in and out of several different modes while configuring a router, and which mode you are in determines what commands you can use. Each mode has a set of commands available in that mode, and some of these commands are only available in that mode. In any mode, typing a question mark will display a list of the commands available in that mode.
Router>?
2.2 Unprivileged and privileged modes

When you first connect to the router and provide the password (if necessary), you enter EXEC mode, the first mode in which you can issue commands from the command-line. From here you can use such unprivileged commands as ping, telnet, and rlogin. You can also use some of the show commands to obtain information about the system. In unprivileged mode you use commands like, show version to display the version of the IOS the router is running. Typing show ? will diplay all the show commands available in the mode you are presently in.
Router>show ?

You must enter privileged mode to configure the router. You do this by using the command enable. Privileged mode will usually be password protected unless the router is unconfigured. You have the option of not password protecting privileged mode, but it is HIGHLY recommended that you do. When you issue the command enable and provide the password, you will enter privileged mode.

To help the user keep track of what mode they are in, the command-line prompt changes each time you enter a different mode. When you switch from unprivileged mode to privileged mode, the prompt changes from:
Router>

to
Router#

This would probably not be a big deal if there were just two modes. There are, in fact, numerous modes, and this feature is probably indispensable. Pay close attention to the prompt at all times.

Within privileged mode there are many sub-modes. In this document I do not closely follow Cisco terminology for this hierarchy of modes. I think that my explanation is clearer, frankly. Cisco describes two modes, unprivileged and privileged, and then a hierarchy of commands used in privileged mode. I reason that it is much clearer to understand if you just consider there to be many sub-modes of privileged mode, which I will also call parent mode. Once you enter privileged mode (parent mode) the prompt ends with a pound sign (#). There are numerous modes you can enter only after entering privileged mode. Each of these modes has a prompt of the form:
Router(arguments)#

They still all end with the pound sign. They are subsumed within privileged mode. Many of these modes have sub-modes of their own. Once you enter priliged mode, you have access to all the configuration information and options the IOS provides, either directly from the parent mode, or from one of its submodes.
3. Configuring your Cisco Router

If you have just turned on the router, it will be completely unconfigured. If it is already configured, you may want to view its current configuration. Even if it has not been previously configured, you should familiarize yourself with the show commands before beginning to configure the router. Enter privileged mode by issuing the command enable, then issue several show commands to see what they display. Remember, the command show ? will display all the showcommands aavailable in the current mode. Definately try out the following commands:
Router#show interfaces
Router#show ip protocols
Router#show ip route
Router#show ip arp

When you enter privileged mode by using the command enable, you are in the top-level mode of privileged mode, also known in this document as "parent mode." It is in this top-level or parent mode that you can display most of the information about the router. As you now know, you do this with the show commands. Here you can learn the configuration of interfaces and whether they are up or down. You can display what IP protocols are in use, such as dynamic routing protocols. You can view the route and ARP tables, and these are just a few of the more important options.

As you configure the router, you will enter various sub-modes to set options, then return to the parent mode to display the results of your commands. You also return to the parent mode to enter other sub-modes. To return to the parent mode, you hit ctrl-z. This puts any commands you have just issued into affect, and returns you to parent mode.
3.1 Global configuration (config)

To configure any feature of the router, you must enter configuration mode. This is the first sub-mode of the parent mode. In the parent mode, you issue the command config.
Router#config
Router(config)#

As demonstrated above, the prompt changes to indicate the mode that you are now in.

In connfiguration mode you can set options that apply system-wide, also refered to as "global configurations." For instance, it is a good idea to name your router so that you can easily identify it. You do this in configuration mode with the hostname command.
Router(config)#hostname ExampleName
ExampleName(config)#

As demonstrated above, when you set the name of the host with the hostname command, the prompt immediately changes by replacing Router with ExampleName. (Note: It is a good idea to name your routers with an organized naming scheme.)

Another useful command issued from config mode is the command to designate the DNS server to be used by the router:
ExampleName(config)#ip name-server aa.bb.cc.dd
ExampleName(config)#ctrl-Z
ExampleName#

This is also where you set the password for privileged mode.
ExampleName(config)#enable secret examplepassword
ExampleName(config)#ctrl-Z
ExampleName#

Until you hit ctrl-Z (or type exit until you reach parent mode) your command has not been put into affect. You can enter config mode, issue several different commands, then hit ctrl-Z to activate them all. Each time you hit ctrl-Z you return to parent mode and the prompt:
ExampleName#

Here you use show commands to verify the results of the commands you issued in config mode. To verify the results of the ip name-server command, issue the command show host.
3.2 Configuring Cisco router interfaces

Cisco interface naming is straightforward. Individual interfaces are referred to by this convention:
media type slot#/port#

"Media type" refers to the type of media that the port is an interface for, such as Ethernet, Token Ring, FDDI, serial, etc. Slot numbers are only applicable for routers that provide slots into which you can install modules. These modules contain several ports for a given media. The 7200 series is an example. These modules are even hot-swapable. You can remove a module from a slot and replace it with a different module, without interrupting service provided by the other modules installed in the router. These slots are numbered on the router.

Port number refers to the port in reference to the other ports in that module. Numbering is left-to-right, and all numbering starts at 0, not at one.

For example, a Cisco 7206 is a 7200 series router with six slots. To refer to an interface that is the third port of an Ethernet module installed in the sixth slot, it would be interface ethernet 6/2. Therefor, to display the configuration of that interface you use the command:
ExampleName#show interface ethernet 6/2

If your router does not have slots, like a 1600, then the interface name consists only of:
media type port#

For example:
ExampleName#show interface serial 0

Here is an example of configuring a serial port with an IP address:
ExampleName#config
ExampleName(config)#interface serial 1/1
ExampleName(config-if)#ip address 192.168.155.2 255.255.255.0
ExampleName(config-if)#no shutdown
ExampleName(config-if)#ctrl-Z
ExampleName#

Then to verify configuration:
ExampleName#show interface serial 1/1

Note the no shutdown command. An interface may be correctly configured and physically connected, yet be "administratively down." In this state it will not function. The command for causing an interface to be administratively down is shutdown.
ExampleName(config)#interface serial 1/1
ExampleName(config-if)#shutdown
ExampleName(config-if)#ctrl-Z
ExampleName#show interface serial 1/1

In the Cisco IOS, the way to reverse or delete the results of any command is to simply put no infront of it. For instance, if we wanted to unassign the IP address we had assigned to interface serial 1/1:
ExampleName(config)#interface serail 1/1
ExampleName(config-if)#no ip address 192.168.155.2 255.255.255.0
ExampleName(config-if)ctrl-Z
ExampleName#show interface serial 1/1

Configuring most interfaces for LAN connections might consist only of assigning a network layer address and making sure the interface is not administratively shutdown. It is usually not necessary to stipulate data-link layer encapsulation. Note that it is often necessary to stipulate the appropriate data-link layer encapsulation for WAN connections, such as frame-relay and ATM. Serial interfaces default to using HDLC. A discussion of data-link protocols is outside the scope of this document. You will need to look up the IOS command encapsulation for more details.
3.3 Configuring Cisco Routing

IP routing is automatically enabled on Cisco routers. If it has been previously disabled on your router, you turn it back on in config mode with the command ip routing.
ExampleName(config)#ip routing
ExampleName(config)#ctrl-Z

There are two main ways a router knows where to send packets. The administrator can assign static routes, or the router can learn routes by employing a dynamic routing protocol.

These days static routes are generally used in very simple networks or in particular cases that necessitate their use. To create a static route, the administrator tells the router operating system that any network traffic destined for a specified network layer address should be forwarded to a similiarly specified network layer address. In the Cisco IOS this is done with the ip route command.
ExampleName#config
ExampleName(config)#ip route 172.16.0.0 255.255.255.0 192.168.150.1
ExampleName(config)#ctrl-Z
ExampleName#show ip route

Two things to be said about this example. First, the packet destination address must include the subnet mask for that destination network. Second, the address it is to be forwarded to is the specified addres of the next router along the path to the destination. This is the most common way of setting up a static route, and the only one this document covers. Be aware, however, that there are other methods.

Dynamic routing protocols, running on connected routers, enable those routers to share routing information. This enables routers to learn the routes available to them. The advantage of this method is that routers are able to adjust to changes in network topologies. If a route is physically removed, or a neighbor router goes down, the routing protocol searches for a new route. Routing protocols can even dynamically choose between possible routes based on variables such as network congestion or network reliability.

There are many different routing protocols, and they all use different variables, known as "metrics," to decide upon appropriate routes. Unfortunately, a router needs to be running the same routing protocols as its neighbors. Many routers can, however, run mutliple protocols. Also, many protocols are designed to be able to pass routing information to other routing protocols. This is called "redistribution." The author has no experience with trying to make redistribution work. There is an IOS redistribute command you can research if you think this is something you need. This document's compagnion case study describes an alternative method to deal with different routing protocols in some circumstances.

Routing protocols are a complex topic and this document contains only this superficial description of them. There is much to learn about them, and there are many sources of information about them available. An excelent source of information on this topic is Cisco's website, http://www.cisco.com.

This document describes how to configure the Routing Information Protocol (RIP) on Cisco routers. From the command-line, we must explicitly tell the router which protocol to use, and what networks the protocol will route for.
ExampleName#config
ExampleName(config)#router rip
ExampleName(config-router)#network aa.bb.cc.dd
ExampleName(config-router)#network ee.ff.gg.hh
ExampleName(config-router)#ctrl-Z
ExampleName#show ip protocols

Now when you issue the show ip protocols command, you should see an entry describing RIP configuration.
3.4 Saving your Cisco Router configuration

Once you have configured routing on the router, and you have configured individual interfaces, your router should be capable of routing traffic. Give it a few moments to talk to its neighbors, then issue the commands show ip route and show ip arp. There should now be entries in these tables learned from the routing protocol.

If you turned the router off right now, and turned it on again, you would have to start configuration over again. Your running configuration is not saved to any perminent storage media. You can see this configuration with the command show running-config.
ExampleName#show running-config

You do want to save your successful running configuration. Issue the command copy running-config startup-config.
ExampleName#copy running-config startup-config

Your configuration is now saved to non-volatile RAM (NVRAM). Issue the command show startup-config.
ExampleName#show startup-config

Now any time you need to return your router to that configuration, issue the command copy startup-config running-config.
ExampleName#copy startup-config running-config
3.5 Example Cisco Router configuration

1. Router>enable
2. Router#config
3. Router(config)#hostname N115-7206
4. N115-7206(config)#interface serial 1/1
5. N115-7206(config-if)ip address 192.168.155.2 255.255.255.0
6. N115-7206(config-if)no shutdown
7. N115-7206(config-if)ctrl-z
8. N115-7206#show interface serial 1/1
9. N115-7206#config
10. N115-7206(config)#interface ethernet 2/3
11. N115-7206(config-if)#ip address 192.168.150.90 255.255.255.0
12. N115-7206(config-if)#no shutdown
13. N115-7206(config-if)#ctrl-z
14. N115-7206#show interface ethernet 2/3
15. N115-7206#config
16. N115-7206(config)#router rip
17. N115-7206(config-router)#network 192.168.155.0
18. N115-7206(config-router)#network 192.168.150.0
19. N115-7206(config-router)#ctrl-z
20. N115-7206#show ip protocols
21. N115-7206#ping 192.168.150.1
22. N115-7206#config
23. N115-7206(config)#ip name-server 172.16.0.10
24. N115-7206(config)#ctrl-z
25. N115-7206#ping archie.au
26. N115-7206#config
27. N115-7206(config)#enable secret password
28. N115-7206(config)#ctrl-z
29. N115-7206#copy running-config startup-config
30. N115-7206#exit

4. Troubleshooting your Cisco router

Inevitably, there will be problems. Usually, it will come in the form of a user notifying you that they can not reach a certain destination, or any destinattion at all. You will need to be able to check how the router is attempting to route traffic, and you must be able to track down the point of failure.

You are already familiar with the show commands, both specific commands and how to learn what other show commands are available. Some of the most basic, most useful commands you will use for troubleshooting are:
ExampleName#show interfaces
ExampleName#show ip protocols
ExampleName#show ip route
ExampleName#show ip arp
4.1 Testing connectivity

It is very possible that the point of failure is not in your router configuration, or at your router at all. If you examine your router's configuration and operation and everything looks good, the problem might be be farther up the line. In fact, it may be the line itself, or it could be another router, which may or may not be under your administration.

One extremely useful and simple diagnostic tool is the ping command. Ping is an implementation of the IP Message Control Protocol (ICMP). Ping sends an ICMP echo request to a destination IP address. If the destination machine receives the request, it responds with an ICMP echo response. This is a very simple exchange that consists of:

Hello, are you alive?

Yes, I am.
ExampleName#ping xx.xx.xx.xx

If the ping test is successful, you know that the destination you are having difficulty reaching is alive and physically reachable.

If there are routers between your router and the destination you are having difficulty reaching, the problem might be at one of the other routers. Even if you ping a router and it responds, it might have other interfaces that are down, its routing table may be corrupted, or any number of other problems may exist.

To see where packets that leave your router for a particular destination go, and how far, use the trace command.
ExampleName#trace xx.xx.xx.xx

It may take a few minutes for this utility to finish, so give it some time. It will display a list of all the hops it makes on the way to the destination.
4.2 debug commands

There are several debug commands provided by the IOS. These commands are not covered here. Refer to the Cisco website for more information.
4.3 Hardware and physical connections

Do not overlook the possibility that the point of failure is a hardware or physical connection failure. Any number of things can go wrong, from board failures to cut cables to power failures. This document will not describew troubleshooting these problems, except for these simple things.

Check to see that the router is turned on. Also make sure that no cables are loose or damaged. Finally, make sure cables are plugged into the correct ports. Beyond this simple advice you will need to check other sources.
4.4 Out of your control

If the point of failure is farther up the line, the prolem might lie with equipment not under your administration. Your only option might be to contact the equipment's administrator, notify them of your problem, and ask them for help. It is in your interest to be courtious and respectful. The other administrator has their own problems, their own workload and their own priorities. Their agenda might even directly conflict with yours, such as their intention to change dynamic routing protocols, etc. You must work with them, even if the situation is frustrating. Alienating someone with the power to block important routes to your network is not a good idea.
5. References

* Leinwand, Pinsky and Culpepper Cisco Router Configuration. Indianapolis, Indiana: Cisco Press, 1998.
* Cisco Systems, Inc., http://www.cisco.com

6. More information

Cisco Quick Tips

My tutorial on IP subnet calculations

Cisco T1 Load Balancing

PDF versions of this and other documents by Josh Gentry at at lulu.com.


Google

Web joshgentry.com
Authored by Josh Gentry

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2500 series router programming (CISCO)

To my fellow students who are have more or much more fun. I hope you will find this http://www.ehow.com/how_4854392_configure-cisco-series-router.html
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How To
How to Configure a Cisco 2500 Series Router
ds_paulch20795 Contributor
By Paul Christian Nelis, eHow Contributing Writer
Article Rating: (4 Ratings)

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Rear view of a Cisco 2515
Rear view of a Cisco 2515
Image from arcelect.com

Routers historically broker computer communications between a local area network and other networks. Because there were many models of the Cisco 2500 Series router produced with different physical characteristics, some details will vary, but the configuration process does not.
Difficulty: Moderately Challenging
Instructions
Things You'll Need:

* Cisco 2500 Series router
* Computer or terminal for programming the router
* Rollover cable terminated for an RJ-45 connector
* AUI Ethernet and/or Tokenring connections if desired
* Modems if desired

Planning
1.
Step 1

Examine the system. There were several models of 2500 manufactured, but they typically involved Ethernet and TokenRing interfaces for the Local Area Network (LAN), and serial ports for modem connections to one or more Wide Area Networks (WANs). You will note that though there are RJ-45 jacks in the back of the unit, they are not for 10BaseT Ethernet. The only Ethernet connection is the AUI connection, thicknet. If you are connecting this unit to a different Ethernet topology, you may need an adapter. Note that this AUI interface is 10 megabits per second.
2.
Step 2

Consider the console port. This router was designed to be configured locally using a hard-wired terminal, or through a modem connection used to dial directly into the unit. To use this console port, either find a computer with a classic DB-9 or DB-25 to RJ-45 serial port adapter or find a dumb terminal with such connective gear.
3.
Step 3

Use the right cable. Ensure the cable between the PC and the console is a "rollover" cable. Such cables have opposite wiring patterns in the terminators. If you hold the terminators next to one another, the pattern of wires in the terminators will be a mirror image of one another. If orange with a stripe is left-most on in one terminator, then it should be right-most in the other.
4.
Step 4

Match terminal settings. Your terminal, or the terminal emulation software you're using, if you're configuring the system from a computer, must have the same communications settings as the router, or the console port will not work. The console port requires 9600 baud, 8 data bits, no parity, and 2 stop bits.
Initial Setup
5.
Step 1

Boot the router. The firmware will automatically try to load its operating system from Flash memory within the router. If the router cannot find or start its operating system (called the Internetwork Operating System, or IOS), it will start in ROM mode--used to update or install a new operating system. In the even the system does load its operating system, it will load an available configuration file. If no configuration file is found, it will await manual configuration from the console, or if there are active network connections available, the 2500 series will attempt auto-configuration through those available network connections.
6.
Step 2

Begin the system configuration dialog. In the event that the configuration file is not found, or is invalid, and auto-configuration does not work, the unit will expect to be configured interactively, from the console port. The configuration dialog will include default answers for most questions posed to the operator. These default answers will appear in square brackets at the end of each question. Tapping the "Enter" key will accept the default answer.
7.
Step 3

Set passwords. There are two types of passwords possible for these models. There is an ordinary "enable" password which is stored in clear text in the configuration file, and an encrypted "enable secret" password. The enable password is used for some older software, and in those situations in which the enable secret password has not been set. There is also a separate password for the virtual terminal server, which helps protect the system from hackers dialing in through the auxiliary port modem.
8.
Step 4

Select protocols. The router is equipped to understand a variety of then-current protocols, including Banyan Vines, DECnet, Apollo and the Internet Protocol (IP). Also included are routing protocols which were used between routers to ensure coordination of the routing process.
9.
Step 5

Configure specific interfaces. Each port must also be explicitly configured. Significant understanding of the physical and logical layout of the LAN and WAN are assumed, so if you have questions about these settings, you should enlist the help of your network administrator. Misconfiguration of a router can corrupt communications across an entire network, so don't hesitate to stop the configuration process at any time and do additional research. The router will wait indefinitely for your return.
10.
Step 6

Once the interfaces are configured, the software will present you with the entire configuration and ask if you would like to use the configuration. Responding "yes" will write the configuration file into NVRAM as the new default configuration file used at start-up. To revisit the configuration, type "configure" at a command prompt on the running system.

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Tips & Warnings

*
Research your settings in advance. Do not be afraid to step aside and do some additional research if you do not understand a question, or the implications of an answer.
*
Incorrectly configuring a router may have serious consequences on communications. Ensure your settings are accurate.

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For the fellow students in class who are having as much fun as I am. Maybe this will new emulater from Cisco will help you.

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Practice Cisco router configuration using a free emulator

* Date: January 10th, 2008
* Author: David Davis
* Category: System Administration, network tools, router configuration
* Tags: Cisco IOS, Cisco Router, Router, Cisco Systems Inc., Emulator, Dynagen, Routers & Switches, Network Technology, Networking, David Davis
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A few months ago, I wrote “Eight ways to strengthen your Cisco networking skills,” and the second suggestion I listed for improving your abilities was to use a simulator. However, while simulators are useful, there’s something even better that you can get for free — an emulator.

What’s the difference? A simulator attempts to re-create the Cisco IOS using a programming language, but an emulator takes the real IOS router code, which you supply, and emulates the hardware behind it so you can run the real IOS on your PC.

With a simulator, there are always missing commands and programming errors, and it can never really be as complete as the real IOS. However, because an emulator runs the IOS, you get every feature that the real IOS has (based on the limitations of the emulated hardware, of course).

For example, if your emulated hardware has a Gig Ethernet interface, and the IOS supports a Gig Ethernet interface on that platform, then you can use the Gig Ethernet interface. If, however, your emulated hardware doesn’t have a VoIP FXS card, then you wouldn’t be able to configure one in the Cisco IOS, even if the IOS supported it.
What is Dynamips?

You can use the Dynamips Emulator for training purposes and testing configurations. You can create configurations and later deploy them to real routers. The Dynamips Emulator can boot IOS images from 7200, 3600, 3700, and 2600 series routers, even including the latest and greatest 12.4T IOS (something that my old 2600 router can’t do because it doesn’t have enough RAM).

One caveat is that you must supply the IOS for any router that you’re going to emulate. It is, of course, illegal to distribute the IOS and only legal to obtain it by purchasing and downloading it from Cisco. However, if you already have a router that’s one of these models, you can copy that IOS into the Dynamips Emulator for testing and training purposes.
What is Dynagen?

Dynagen is the text-based front end for the Dynamips Emulator. It allows you to automatically provision Dynamips-emulated networks. It has a large following, supported through 7200emu.hacki.at Forum for Dynamips & Dynagen.

Now, as much as I like using Dynamips and Dynagen together, their configuration can be challenging for new users to understand. However, a package called GNS3 helps make it easier.
What is the Graphical Network Simulator?

A new open source project that helps improve on Dynamips is the Graphical Network Simulator (GNS). Linked to Dynamips and Dynagen, GNS3 is available precompiled for Windows, and the source is available if you want to run it on Linux or Mac OS X.

The GNS3 Windows all-in-one installation package includes Dynamips, WinPCAP, and GNS3. Let’s walk through installing and using GNS3.

First, I downloaded the GNS3 Windows all-in-one package and installed it. To install WinPCAP, I did have to reboot my PC. Once installed, I ran GNS3 from the desktop icon the installation process created.

This brought up a nice GUI interface that was similar to some of the Cisco IOS simulators I’ve seen. I was able to quickly create a sample network by dragging and dropping router icons and then connecting them with the Connection tool. Figure A offers a screenshot of what it looked like.

Figure A

Figure A

After creating the network, I did have to add my IOS images because GNS3 didn’t provide them. To add IOS images, go to Edit | IOS Images and Hypervisors. Figure B shows a screenshot of what it looked like after I finished.

Figure B

Figure B

Next, I started the Dynamips Emulator by go to Preferences | Dynamips and clicking Test. Figure C offers a screenshot.

Figure C

Figure C

From here, I could configure the specifications for the router — amount of RAM, Flash, cards in slots, and configuration-register. Next, to use the network, click the Emulation Mode button.

Once in Emulation Mode, click the Play button to start the IOS instances of all routers. Figure D offers a screenshot.

Figure D

Figure D

This launches a console for each router, and it boots up the routers, as shown in Figure E.

Figure E

Figure E

As you can see, just like a real test lab with multiple routers, I was able to configure these two routers to communicate with each other by configuring IP addressing, enabling the interfaces, and configuring a routing protocol. Figure F shows how I configured basic RIP routing and how the router received a RIP route from the other router.

Figure F

Figure F

While I recommend building your own lab so you can get a better understanding of how it works, there are also some sample labs available when you install Dynagen. I’ve also seen some sample labs and an entire CCIE commercial lab workbook, all based on using Dynamips, on the Internetwork Expert Web site.
Conclusion

The ability to run multiple routers inside your PC is very useful for testing and training. It can save you the time and trouble from having to invest in a test Cisco network, and it certainly makes it more convenient. I hope that by trying and using GNS and Dynamips, you can become a better Cisco network administrator.

Want to learn more about router and switch management? Automatically sign up for our free Cisco Routers and Switches newsletter, delivered each Friday!

David DavisDavid Davis has worked in the IT industry for 15+ years and holds several certifications, including CCIE, CCNA, CCNP, MCSE, CISSP, VCP. He has authored hundreds of articles and numerous IT training videos. Today, David is the Director of Infrastructure at Train Signal.com. Train Signal, Inc. is the global leader in video training for IT Professionals and end users. Read his full bio and profile.

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Print/View all Posts Comments on this blog
Great Information mmantei@... | 01/11/08
A great tool avila_mj@... | 01/11/08
you are right..... trustmubaiwa@... | 01/14/08
How to install it? dion2herrera@... | 02/19/08
GNS3 install and configure Mdallen70@... | 03/09/08
Resource Management CrimsonPaw | 01/11/08
Idle Values LievenV | 01/13/08
Re: Idle Values CrimsonPaw | 01/18/08
Idle Pc Values ktaisia@... | 07/09/08
Packet Tracer 4.1 Exp | 01/12/08
Great ! adewalexdavid@... | 01/13/08
Try Packet Tracer 5 larrsland@... | 02/27/09
RE: Practice Cisco router configuration using a free emulator tomtomtom@... | 01/24/08
RE: Practice Cisco router configuration using a free emulator James Jelinek | 01/26/08
RE: Practice Cisco router configuration using a free emulator bkerwood@... | 02/07/08
RE: Practice Cisco router configuration using a free emulator amit.k.raja@... | 03/05/08
RE: Practice Cisco router configuration using a free emulator flexer4real@... | 03/07/08
RE: Practice Cisco router configuration using a free emulator biswas_sai@... | 03/15/08
GNS Video Tutorials tmsheikh@... | 06/26/08
Videos and configs for GNS3 lbsources@... | 09/26/08
RE: Practice Cisco router configuration using a free emulator daniel@... | 10/12/08
RE: Practice Cisco router configuration using a free emulator yokyle@... | 11/25/08
Cisco System's Edge Quest 2 Tournament Info kenneth.cho@... | 02/19/09
RE: Practice Cisco router configuration using a free emulator Mostina | 08/12/09
RE: Practice Cisco router configuration using a free emulator sh.dileep.kr88@... | 08/19/09
how to config an router madhanram | 02/11/10
how to config an router madhanram | 02/11/10
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Share News | Manufacturing
Michael Kanellos 03 18 10
General Electric To Take On First Solar
A giant awakens in cadmium telluride.
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First Solar won't be the only name in cadmium telluride solar panels soon.

General Electric today announced it will research and develop thin-film solar panels with PrimeStar Solar, specifically cadmium telluride solar cells, and then start selling them next year. Although Q-Cells and a few startups have launched plans to get into cad tel, First Solar is virtually the only large mass producer of cad tel solar modules.

GE invested in PrimeStar, a cad tel start-up, in 2007 and became the majority shareholder in 2008, but it has been somewhat coy about its intentions. GE mostly said they were interested in the thin film market, etc., etc. The behemoth was a little more direct today. GE researchers will work with PrimeStar to develop cad tel solar panels. GE will then sell these panels for utility-scale solar parks.

"We want to build a technical capability that will [help us] differentiate ourselves," said Danielle Merfeld, who leads GE's solar R&D, in a phone interview. Cadmium telluride holds the promise if being the least expensive type of solar panel, "and this is our way to get access that that (kind of) module."

This could turn into a titanic battle. First Solar is one of the two largest solar manufacturers in the world (China's Suntech Power Holdings is the other) and by far the largest thin film manufacturer. Just as important, it has a record for relentless, efficient manufacturing and bringing down the cost of its modules. The company makes modules for less than $1 a watt (it was the first to get to that milestone) and regularly beats earnings expectations. It can be thought of as the Intel of solar.

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Share Research & Analysis | Biofuels
Joshua Kagan 03 18 10
The True Cost of Corn Ethanol
A number of recent studies have missed the mark.
.
There have been a number of recent articles and reports that have come out attempting to quantify whether the various subsidies for first-generation biofuels, such as corn ethanol and soybean-derived biodiesel, make economic sense.

And while they are interesting, most are missing the bigger picture.

This month, the National Resource Defense Council (NRDC) interpreted a University of Missouri study to mean that the "current corn ethanol tax credit is effectively costing tax payers $4.18 per gallon and driving up grain prices."

Shockingly, pro-ethanol industry organizations like Growth Energy and the Renewable Fuels Association took issue with these claims.

Let's get to the facts.

In 2010, the U.S. government will require under the Renewable Fuels Standards (see EPA Issues Renewable Fuels Standards) that 12.0 billion gallons of corn ethanol are produced. The U.S. government will provide a $0.45/gal "blender's tax credit" for petroleum refiners to blend corn ethanol which is equal to a $5.4 billion dollar subsidy.

There is also the issue of the indirect subsidy in the form of a $0.54/gal tariff on imported Brazilian biofuel (see Brazilian Ethanol Takes a Hit) to insulate U.S. ethanol producers from foreign competition. Basically, due to the favorable economic structure of sugarcane ethanol over corn ethanol, if this tariff did not exist, the U.S. would import billions of gallons of Brazilian ethanol.

12 billion gallons of corn ethanol has the btu equivalence of 9 billion gallons of gasoline -- roughly 6.5% of the U.S. gasoline supply of 140 billion gallons.

Some argue that the true amount that first-generation biofuels are subsidized must account for increases in the cost of food. That is, the laws of supply and demand suggest that if the U.S. is utilizing approximately 30% of its corn crop to produce ethanol then the price of corn would decrease if that portion of the corn crop was diverted to human consumption rather than to ethanol and DDGS production.

Others counter that the U.S.' 13.2-billion-bushel record corn harvest of 2009 (see A Comeback for Corn Ethanol?) illustrates that corn producers continue to become more productive and that the "food vs. fuel" debate is immaterial. While there is truth to the observation that corn yields have continued to improve, the U.S. is still utilizing the equivalent of almost thirty million acres of scarce cropland to produce feedstocks for biofuel.

Then there is the issue of Indirect Land Use Change (ILUC) (see Inconvenient Truth: Biofuels Have a Carbon Footprint).

Although the talking heads of Big Agriculture and Big Ethanol's propaganda wings like to pretend otherwise, there is only a finite amount of cropland on this planet. As more and more farmland gets planted for bioenergy -- and the global population continues to grow by 80 million people per year -- deforestation occurs in places like Brazil and Indonesia, where carbon-rich peat forests are cut down to grow crops that otherwise would have been grown in the West.

This deforestation is the primary reason why Indonesia and Brazil are now the third and fourth largest C02 emitters on the planet, respectively. The more that pro-ethanol lobby groups like the Renewable Fuels Association (RFA) and Growth Energy dispute the existence of indirect land use changes and lobby their friends in Congress to strip the EPA of its right to use ILUC in life-cycle carbon analyses, the more that they undermine their credibility about their environmental stewardship and the economic benefits of first-generation biofuels like corn ethanol.

Thus, the calculation of corn ethanol's costs are a combination of direct subsidies like the blenders credit, renewable fuels standards, and the import tax on Brazilian ethanol, as well as indirect subsidies in the form of higher food prices and any positive carbon footprint that might exist.

What is the exact total? Given the lack of agreement on the methodology to determine how much corn ethanol contributes to corn price increases as well as disagreements over how to calculate indirect land use, the best estimate is "tens of billions of dollars" per year. Yet, this might not be as significant as it seems when we consider the other side of the coin.

What are corn ethanol's economic benefits?

While I am completely unapologetic in my belief that Congress and the White House are unwisely pursuing a biofuels policy in which corn ethanol, soybean biodiesel, and cellulosic ethanol have been chosen over radically transformative feedstocks like algae and designer organisms that can produce "drop-in" renewable gasoline, jet fuel, and diesel, I also believe that credit should be given where credit is due.

In order to assess the cost and benefits of first-generation biofuels like corn ethanol, we must ask ourselves, how much did the United States save in recent years by substituting domestic ethanol for petroleum fuels?

According to the Energy Information Administration (EIA), the global average price of a barrel of crude oil jumped from $56.64 to $99.67 between 2005 and 2008, an increase of 76%, while the global supply of oil increased only 1% -- from 84.58 million barrels per day to 85.46MBD. Tight global supplies and supply chains had accelerated the price rise over small volume increases, as producers hit the limit of what they could produce and deliver.

During the same period, the Renewable Fuels Association (RFA) reports that domestic ethanol production increased 130% -- from 3.9 billion gallons per year to 9.0 billion gallons per year -- reaching 373,600 barrels of oil per day on an equivalent Btu basis in 2008.

Significantly, this increase in biofuel production was the dominant contributor to U.S. imports of foreign oil falling over that same period, during a period of robust economic growth and falling U.S. oil production. Certainly, anyone concerned about domestic energy security would find that statistic encouraging.

Economically speaking, without ethanol production, the U.S. would have required an additional 1.3% of its total oil consumed -- predominantly from abroad -- or 0.34% of the global oil supply. Considering a price increase of $43/bbl from the previous 1% rise in world demand, simple but conservative extrapolation suggests that the additional one-third of a percent of the supply that biofuels supplanted would have increased global oil prices by an additional $15/bbl -- resulting in nearly $120 billion of annual savings for American oil consumers, based on a total of 8 billion barrels consumed annually. And this is to say nothing about the jobs that biofuels created, the tax revenue generated, and biofuels' contribution to national GDP.

In light of the diminishing supplies of inexpensively accessible oil, it seems likely that biofuels' role in directly replacing petroleum and softening the impact of diminishing crude supplies will become paramount in the coming years, especially as 2.5 billion people in "Chindia" continue to undergo their industrial revolutions, 6 billion people on the planet catch up to the personal mobility mass consumer lifestyles that 1 billion of us take for granted, and we approach the peak of easily accessible conventional oil supplies.

The forthcoming oil shocks will be partially mitigated by higher ethanol supplies -- and for that, we have reason to thank the corn ethanol industry. Yet, the economist in me cannot help but wonder about the opportunity costs that we have incurred over the last several decades. Specifically, by not investing the tens of billions of dollars necessary to scale up second- and third-generation biofuels that could displace 100% of our petroleum consumption with non-food based feedstocks, rather than the investments that were made in first-generation biofuels that have led us to be subservient to an Agricultural Industrial Complex that dictates our national biofuels policy (see Biofuels 2010: Spotting the Next Wave).
..16 Comments

Matt Hartwig 03/18/10 1:03 PM
Josh

While there are many issues i have with your description of the issues surrounding American ethanol production, i must ask how you calculate a $12 billion subsidy this year for ethanol? Your math is fuzzy to say the least. First, the $0.45 would apply to the 12 billion gallons of ethanol used as required by the RFS (the RFS mandates use, not production). However, the $0.54 tariff on imports would only apply to gallons actually imported, not all those used considering the vast majority will be domestic production. Additionally, the tariff is a revenue generator not a subsidy. Nor does it protect the industry. it is there to offset the value of the tax credit for which all ethanol is eligible regardless of origin.

Based on 12 billion gallons of use, the tax incentive is worth, at most, $5.3 billion.

Reply

Ralph 03/18/10 1:13 PM
Why did you apply the 54 cent tariff to ALL 12 billin gallons?! That is extremely misleading and doesn’t make sense. The tariff is only assessed on imported ethanol and is meant to offset the blender’s credit that is claimed on every gallon of ethaol blended—whether from Iowa or Brazil. The U.S. will probably only import 150 million gallons or so this year. So, your math really should look more like this: 12 bg x .45 = $5.4 for the tax credit; plus 150 mg x .54 = $81 million; for a total of $5.48 billion—or less than half of the figure you cite. Please correct.

Reply

MMerritt 03/18/10 2:17 PM
While I disagree with some of your points, it is refreshing to see ethanol critics scrutinized to the same degree as ethanol supporters. It has become popular to simply accept ethanol criticism as truth while dissecting the minutia of every pro-ethanol argument. I appreciate that you took nothing for granted in this post. Keep it up.

Reply

Joshua Kagan 03/18/10 2:41 PM
Matt and Ralph, thank you for your comments highlighting a sloppy distinction I made. The point that I failed to convey is that if we didn’t impose the $0.54/gal Brazilian tariff, you can be well assured that our market would be flooded with Brazilian ethanol—- as the economics of Brazilian ethanol are generally better than corn ethanol (until very very recently). Thus, the tariff of $0.54/gal is an indirect subsidy as it protects domestic producers from international competition. I was probably a bit too presumptuous in assuming that ALL 12 billion gallons would come from Brazil. For that, I apologize for my sloppiness.

Reply

Matt Hartwig 03/18/10 3:19 PM
Josh

The market likely wouldn’t be flooded for a number of reasons, not least of which is Brazil’s own mandate for use. That being said, the tariff is not a barrier to entry. We imported nearly 600 million gallons of ethanol in 2008, much of that paying the tariff. The tariff simply offsets teh value of the tax incentive for which Brazilian ethanol is eligible.

You might find it interesting that Brazil impose a 20% tariff on ethanol imports, but that isn’t something they frequently like to discuss.

Thanks for the clarification.

Reply

Ralph 03/18/10 3:43 PM
Joshua,

First, thank you for acknowledging your mistake and posting the clarification. Too often bloggers won’t back down from incorrect statements they make, even when it is clearly pointed out by commenters that factual mistakes were made.

Second, I agree with you that imports from Brazil could increase dramatically if the tax credit is discontinued. It is probably a given that if the tax credit goes away, the tariff goes away too (because as Mr. Harwig explained, the tariff is meant to “cancel out” the tax credit on foreign ethanol). If the tax credit and tariff expired, I think you would see many U.S. ethanol plants close down and foreign producers would rapidly increase their production to take advantage of the U.S. mandate for ethanol. So the question facing lawmakers is, from an energy security standpoint, is imported ethanol any better than imported oil?

Thanks,
R

Reply

randydutton 03/18/10 4:21 PM
You’re missing the mark.

Additional cost of incorporating ethanol into our fuel supply is the cost to repair or replace millions of open cycle engines. Read the Outdoor Power Equipment Institute report http://www.opei.org/ht/a/GetDocumentAction/i/1926.on just how destructive, dangerous, and inefficient ethanol is. And according to the WA State Dept of Ecology, “and more than 2% ethanol in the fuel supply and Seattle doesn’t attain EPA ozone attainment levels”.

Further, America HAS the oil, its just that the Congress has blocked its extraction. No thanks to my Rep. Norm Dicks who authored the 2008 Energy Act that specifically blocked industry extraction of oil. Read the 2010 NARUC report that shows $2.37 trillion LOSS to US GDP because of the moratoria being in place http://www.naruc.org/News/default.cfm?pr=183. The report shows just how much MORE oil and natural gas America has than previously thought.

Reply

Derek 03/18/10 5:31 PM
In the United States; 95% of the oats, 80% of the wheat and 80% of the corn is fed to cows. It takes 10 to 16 pounds of grain, 1 gallon of gasoline and 2,500 gallons of water to produce one pound of grain fed beef. In the American West, the livestock industry consumes 70% of the water. Globally, livestock production accounts for 21% of greenhouse gas emissions. Minus water and grain subsidies a pound of ground beef (basic hamburger) would cost more than $35/lb. With the same water, farmers could produce 16 pounds of broccoli, 25 pounds of potatoes, enough soybeans for three pounds of tofu or enough wheat for nearly five pounds of whole wheat bread.

U.S. subsidies for Oats, Wheat and Corn (feedstock) are more destructive to the Global Economy and Environment than all the illegal drugs put together including Afghanistan Poppy fields, Columbian Cocaine, and Mexican marijuana.
While our soldiers, law officers, diplomatic staff and citizens die over drug production and distribution, the livestock industry does more damage to our country by both squandering our land, air, and water resources and by its ability to offer artificially low prices on the unhealthiest of foods, at the expense of U.S. produced fruits and vegetables.

In the U.S. we enjoy personal freedom to eat what we want and like, but we are fooled into thinking that meat is cheap while fruits and vegetables are expensive by government policies that favor powerful companies that produce most of our foods. The beef and livestock industry controls an inordinate percentage of our food supply, and extracts government (Taxpayer) payments to make the most damaging and unhealthy foods substantially less expensive than broccoli, apples, and spinach.

At the very least, we should demand that our government remove all subsidies for Feedstock in favor of fruit and vegetable production. This is the first and most effective step our country can do to address food and environmental security along with water and land conservation.

Other steps include eliminating the free use of our land, water, and waste sinks by the livestock industry which has lead to exploitation and pollution. These resources should be fairly priced to reflect the full economic and environmental costs. At the same time, herders, producers and landowners can be paid for environmental services that fairly regulate and conserve water and preserve the land.

We need a national moratorium on the environmental and health impact of current livestock and energy production so that we can redirect programs, policies, and money into those areas that provide the jobs and industries of the future while making the best use and preservation of our natural resources.

Reply

Dr Aaron Wolf Baum 03/18/10 6:43 PM
I don’t see how your final assertion makes any sense at all, it’s not in accordance with the most basic economics.

“According to the Energy Information Administration (EIA), the global average price of a barrel of crude oil jumped from $56.64 to $99.67 between 2005 and 2008, an increase of 76%, while the global supply of oil increased only 1%—from 84.58 million barrels per day to 85.46MBD.” So the price of oil went UP while the supply ROSE. If the price of oil were determined solely by supply, then the statistics you quote would indicate that an increase in supply would INCREASE oil prices. So by your logic corn ethanol is *costing* the U.S. $120B/yr!

Clearly, demand must have risen a lot during this period, and demand changes are primarily driving the economics.
There is no doubt some lowering effect on oil prices from corn ethanol, but you have to dig a lot deeper into the mechanics of the oil market to figure such things out, and I think that the idea that a 0.34% change in production leads to a ~30% change in oil prices is a stretch, to say the least…

Reply

Joshua Kagan 03/18/10 7:23 PM
Aaron,
I appreciate your comments. I have read them a few times and I still have no idea how you interpreted my reasoning to assume that I believe that “the price of oil [is] solely determined by supply.” Let me clarify, oil producers (other than Iraq) had every incentive in the world to produce more oil and meet heightened demand from an era of global prosperity from 2001-2007. Yet, the fact is, supplies increased in a very small manner. The supply/demand imbalance resulted in extreme price inelasticity as demonstrated by the data illustrating that for every 1% increase in supply there was a XX% increase in price. Iran announced this week that it will need to invest $200B to maintain oil production levels through the next decade. The era of cheap and ubiquitiously available supplies of crude oil is coming to an end whether we like it or not. And yes, when there are extremely tight oil supplies, marginal increases in demand can have massive price increases. Had the financial crisis and ensuing global recession of 2H 2008 not occurred, we could be at $250/bbl oil today.


Kevin 03/18/10 7:04 PM
While the above commenter is correct on some level, we should also not forget that petroleum prices are not determined in close to a perfect market. Gas prices are controlled by the monopoly power exercised by OPEC. This makes any assertion like the one presented here largely speculative (i.e. there’s no way of knowing what oil prices would have been sans ethanol). However, the basic premise is accurate - ethanol probably depresses oil prices.

Reply

Dean 03/19/10 10:23 AM
It is interesting how a so called green person can attack renewable fuel and not mention the footprint of petroleum. If corn is so bad why do you not mention the millions of acres of coffee around the world with no food value. Coffee acres truely do take up rain forest land. Corn ethanol produces as much feed (DDGS) as it does fuel. Reality check sir!

Reply

DCPerspective 03/19/10 10:49 AM
Very well thought out points in your article, refreshing to see valid and truthful coverage of what should be considered a proud and innovative American Industry success.

A few points to add.

It must be acknkowledged that without corn ethanol the expertise, funding, and infrastructure base would not be in place for second and third generation ethanol technologies to develop, much less enter a market that is still very hostile to ethanol even considering the positives you have pointed out.

Indirect land use- this is a theory with no accepted basis of accuracy, even acknowledged by the thoerists themselves. Your point on limited cropland is indeed valid however until ILUC expands its assumption that only American biofuels are subject to any implementation of this theory is simply biased heresy. Without addressing it uniformly across all industries and nations it will continue to stand as it is- a highly subjective theory that aims to penalize a single industry without regard to science.

A very important point that is overlooked here beyond the savings to American consumer is that the money is staying HERE and is not funding hostile or unfriendly nations.

Lastly the effect of having a proven, growing, and successful alternative transportation fuel is priceless in terms of national capabilities and national security.

Reply

StevenS 03/19/10 5:31 PM
Your assertion of finite cropland is technically correct, but the truth of the the matter is that even the US, a large percentage of the arable land is idled. Add to that the ever increasing yields and more sophisticated farming practices, and you are worrying about a non-issue. The starch used for ethanol is hardly missed in the agricultural supply chain, since the part of the kernel that livestock utilize is still available as a high protein feed.

Heaven forbid the price of corn should rise enough to cause the farmers to no longer need agricultural subsidies. Heaven forbid the proce of corn should rise enough to justify the use of farmland in developing nations, since the cost of farming cannot compete with the massive amounts of free or nearly free grain the US dumps into overseas ports.

We have become victims of our own productivity and stupidity. We produce more than we need, so we found ways to prop up the markets. Now that we finally find a way to use some of that excess, the unimaginative pundits jump in and support the corporations whose profits are threatened.

ILUC has got to be one of the most ill founded ideas that I have ever heard of. Can we really justify penalizing our own efforts to develop alternative fuels? If the US does not develop alternative fuels, who will? China? USDA numbers indicate that US exports of grains INCREASED, despite the use of corn for ethanol. ILUC is a farce. Do you think we should penalize a Prius owner for causing the price of gas to fall, making his neighbor’s SUV more affordable?

The assumption that we are causing deforestation by using our surplus is simply not borne out by a single fact. Deforestation was occurring at a record clip long before corn ethanol, and has actually slowed according to the United Nations FAO. Compared to the 1990-2000 period, deforestation in the 2000-2005 period slowed considerably. Again, ILUC is not borne out by facts.

Reply

Ron Steenblik 03/19/10 5:56 PM
Josh,

You should have stuck to your guns. An import tariff affects the price of ALL domestic sales, not just of sales of the imported competing good. It may not raise the price of domestic goods by the full value of the tariff (i.e., there may be “water” in the tariff), but whatever effect there is will percolate throughout the market.

Consider the case of Japan, for example. Import tariffs keep out all but a trickle of imported rice in that country. But thanks to its high border protection, the domestic price of all rice sold in that country is several multiples of the world price.

Matt Hartwig is correct, however, that if the tariff (or the tariff and the VEETC) were removed, the U.S. “market likely wouldn’t be flooded”. Besides Brazil having a mandate for its own use (and supplying ethanol to Swedish and other European consumers), its own prices will of course represent global supply and demand. And there are natural barriers created by geography. As a recent analysis by the Baker Institute showed, the it is unlikely that Brazilian ethanol would be able to compete with U.S. corn ethanol in the U.S. heartland — i.e., east of the Rocky Mountains and west of the Appalachians — tariff or no tariff in place.

If gasoline prices were to rise considerably, more Brazilian ethanol would most likely be sold in the United States without a tariff than with a tariff. But more ethanol would be sold in total, which is what a lot of people concerned about imported oil say they want.

But Matt Hartwig is leaving out some important details when he writes, “That being said, the tariff is not a barrier to entry. We imported nearly 600 million gallons of ethanol in 2008, much of that paying the tariff. The tariff simply offsets the value of the tax incentive for which Brazilian ethanol is eligible.”

There are two claims being made here, both eroneous. First, the tariff is most decidedly a barrier to entry, It was less of a barrier until October 2008 (note that Hartwig cites import statistics for 2008 but conveniently not for 2009 or later), when importers could “drawback” the import duty by exporting an equivalent amount of jet fuel (e.g., by filling up tanks of aircraft flying to another country). So, though some of the Brazilian ethanol that was imported “paid the tariff”, that tariff was later rebated, neutralizing its effect.
The passage of the 2007 Farm Bill in 2008 extended the $0.54 import tariff for two years, until December 31, 2010, but also eliminated the duty drawback on re-exports that do not contain ethanol. (See http://www.thompsonhine.com/publications/publication1487.html). This had an immediate chilling effect on the import market. Thus, according to F.O. Lichts, while the United States had imported more than 68,000 cubic meters of denatured ethanol from Brazil between January and July 2008, during the same period a year later it imported only 36 cubic meters. (Meanwhile, imports from Canada, which are free of import duty under NAFTA, more than doubled, to 42,000 cubic metres). Similarly, imports of undenatured ethanol from Brazil declined from almost 373,000 cubic metres in January-July 2008 to just 47,000 cubic metres during the corresponding period a year later.
Incidentally, the tariff does not “simply offset the value of the tax incentive for which Brazilian ethanol is eligible.” First, the tariff is 9 cents per gallon higher than the blenders’ tax credit. But, more importantly, even if it were the same, all that would mean is that Brazilian ethanol would not be disadvantaged compared with gasoline (which is imported from all nations nearly duty free). Because domestic U.S. ethanol suppliers also benefit from the blenders credit, the disadvantage to Brazilian ethanol (apart from that channeled through countries such as Jamaica under the Caribbean Basin Initiative (duty free up to 7% of domestic consumption) vis-avis U.S. ethanol producers is the full rate of the tariff: it does not matter at what level the VEETC is set.
Finally, Matt Hartwig notes that “Brazil impose(s) a 20% tariff on ethanol imports, but that isn’t something they frequently like to discuss.” Perhaps that is because the Brazilian ethanol exporters are embarrassed by their government’s action. Indeed, UNICA, the Brazilian Sugarcane Industry Association, has been arguing for the import tariff (which was recently raised back to the bound rate of 20% after having been at zero since February 2006) to be eliminated as soon as possible. http://english.unica.com.br/releases/show.asp?rlsCode={FD292910-8B87-4CDB-96AC-8B491DEF00A2}.

Reply

Ron Steenblik 03/19/10 6:05 PM
SteveS,

You write, “but the truth of the the matter is that even the US, a large percentage of the arable land is idled.”

Please be more specific and provide some statistical evidence? Are you referring to land enrolled under the Conservation Reserve Program (CRP)? Are you saying that you would be happy to see that land—much of it highly erodible—plowed up?

You write also that “The starch used for ethanol is hardly missed in the agricultural supply chain, since the part of the kernel that livestock utilize is still available as a high protein feed.”

That high-protein feed can substitute for a significant proportion of the feed rations of cattle, but not of poultry and hogs, which DO miss the starch. If DDG was such a great boon to the livestock industry, why are the poultry and hog raising industries calling for an end to subsidies for ethanol?

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