Gasoline is a saturated hydrocarbon, with a fixed amount of energy, in each gallon.
91 octane gasoline has an energy density of 44.8MJ/kg per gallon
Ethanol has an energy density of 31.68MJ/kg per gallon
energy density = amount of energy stored (available) in a given volume or given mass
MJ = megajoule
kg = kilogram
BTU= brutish thermal unit (unit of energy)
So 1 gallon of 91 octane, 'pure' gasoline is 125,000BTU
and 1 gallon of ethanol is is rated at 129 octane, contains 84,600 BTUs per gallon
Ethanol is an octane booster, and does not contain the same amount of energy as gasoline.
85% Ethanol + 15% 91gasoline, resulting an 123.3 octane rating blend, if you do the math, contains around 91,500BTUs per gallon. NOTE: they most likely will use a lower grade of gasoline in the blend, since the octane is boosted by the ethanol.
Bottom line, to do the work of 1 gallon of 'real' gas, you need to burn 1.36 gallons of gas/ethanol blend.
In other words, 36% more gas/ethanol blend to go as far.
I bet you the 'tree huggers' didn't share this info with you. Not as "green" as advertised!
To answer you question, higher C/R just extracts more of the available energy from the fuel. Also remember that they can use much lower octane gas in the E85 blend, the stuff chemically closer to the heptane molecule than to the octane molecule, so your actual octane, in E-85 might be much lower, and closer to 91.