U.S. Ethanol Production Nearing One Million Barrels Per Day

OilPrice.com
Written by Brian Westenhaus
Saturday, 13 November 2010 16:37

The Energy Information Administration (EIA) reports for August that U.S. ethanol production rose in August to an all-time high, production averaged more than 869,000 barrels per day (b/d). The Renewable Fuels Association who also collects data calculated ethanol demand at all-time high as well at 911,000 b/d in August, up from 734,000 b/d a year ago.

The U.S. is closing in on the million barrel per day milestone. Cheers in some sections, groans in others, but for America, slashing off the equivalent of 750,000 b/d of imported oil is a good thing.

Most groans come from the odd couple of the oil business and the special mis-interests of food vs. fuel. The oil business, god bless’em, are in a quandary – one side is hell bent on doing the business as done for 150 years – another is ready to resist and protect its market and share – another is investing and researching with a realization that every bit of energy in fuel has market and profit potential – and a few have jumped into ethanol grabbing some facility during the ethanol build up bubble for cents on the dollars. Some companies work at some or all of the quandary barriers. Its quite interesting to watch.

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