Ethanol production in the United States set a new production record in the month of October, according to the industry lobby group.
WASHINGTON, DC – Ethanol production in the United States set a new production record in the month of October, according to the industry lobby group. The domestic industry produced more than 111,000 barrels per day (b/d) on average in October, exceeding the previous monthly record set of 110,000 b/d set in April, reports the Renewable Fuels Association (RFA). The figures are tabulated by the Department of Energy’s Energy Information Administration (EIA). The ethanol industry is on pace to set a yearly production record in excess of 1.6 billion gallons of ethanol in 2000. “A confluence of factors is driving short-term and long-term ethanol production increases,” explains RFA president Eric Vaughn. “OPEC is united in keeping the world price of crude oil at its current level. The domestic refining industry is operating at peak capacity, leaving little room to keep up with growing U.S. demand for gasoline and diesel fuel. States are acting to phase out MTBE and a national ban is inevitable.” “Using ethanol reduces our dependence on high-priced foreign oil, expands our fuel supply to reduce refinery bottlenecks, and can replace MTBE as a clean air additive in our nation’s most polluted areas,” he adds. “At the same time, ethanol continues to be a cost-competitive octane and oxygen additive.” “Ethanol helps meet the current and proposed tighter regulations for gasoline and diesel fuel, and the successful use of ethanol in the winter oxygenated fuels program has reduced carbon monoxide emissions to enable many states to achieve air quality standards,” he explains. “Simply put, the future for ethanol has never been brighter. Ethanol will continue to help the U.S. meet its energy, environmental, and economic needs.” “Given persistently low commodity prices and consistently high crude oil costs, increased ethanol production remains the bright spot for farmers and consumers,” concludes Vaughn. “This year’s outstanding production is a testament of the ethanol industry’s commitment to growth and expansion of clean, domestic, renewable fuels.”