Reuters (“Ethanol boom may stifle U.S. gasoline demand,” 2.14.08).

[JohnWxy]

http://www.ethanolrfa.org/objects/documents/1524/ethanol_replacing_gasoline_demand_2.14.08.pdf


According to Reuters, “explosive production is stifling an established driver of oil
markets U.S. gasoline demand and could lead to lower prices at the pump.”

The article notes that ethanol production in 2007, which the Renewable Fuels Association
estimates to have been 6.5 billion gallons, is up 130,000 barrels per day according to the Energy
Information Administration. That is equivalent to the amount of gasoline a mediumsized
oil refinery produces. Through November 2007, the latest date available, ethanol production was
averaging 417,000 barrels per day or 17.5 million gallons per day – the equivalent of THREE mediumsized oil refineries.


In an interview for the article, Eric Wittenauer of AG Edwards in St. Louis stated, “‘Ethanol
blending could help ease U.S. refining bottlenecks and that could be ultimately reflected in lower
prices at the pump.’”

Equally important as reducing prices at the pump is ethanol’s role in reducing oil and gasoline
imports. According to the outlook of Valero, the nation’s largest oil refiner, the “company
foresees ethanol growth ‘offsetting gasoline imports to the U.S.’”

The entire Reuters article, written by Timothy Gardner and Rebekah Kebede
gasoline, can be viewed at http://www.reuters.com/article/reutersEdge/idUSN1349602720080214?sp=true.|Reuters.com]