Ethanol production in January averaged 375,000 barrels per day while demand averaged 414,000 barrels per day. Fuel ethanol stocks were 361 million gallons, or nearly 21 days worth of reserve.
The increases are considerable compared to one year ago. From January 2006, production rose 87,000 barrels per day and demand rose 143,000 barrels per day.
Much of the increase in demand can be attributed to the removal of the additive MTBE from the nation’s gasoline supply. The EIA’s Monthly Oxygenate Report showed that January MTBE production was 58,000 barrels per day, all of which was produced in the No. 3 Petroleum Administration for Defense District (PADD), which includes Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas. That figure is up slightly from December 2006 when production averaged 48,000 barrels per day.
At February’s National Ethanol Conference, several ethanol industry and government representatives said they expect the U.S. gasoline supply to be MTBE-free by the end of 2007.
According to the U.S. International Trade Commission, ethanol imports were 44.4 million gallons in January. In February, the Renewable Fuels Association (RFA) said 653 million gallons of ethanol were imported throughout 2006, including 434 million gallons directly from Brazil.
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“The U.S. ethanol industry is responding to the call for a more sustainable energy future in this country,” said RFA President Bob Dinneen. “By relying more heavily on a domestically produced renewable fuel, our country is beginning down the long road of reducing the impacts of global warming and our dependence on foreign oil. While renewable fuels like ethanol are not the silver bullet to our nation’s energy problems, they do provide a confident first step toward meeting our future energy needs.”
Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
Posted: 10:24 a.m. CDT Tuesday, April 3, 2007
