GoodFuels

Ethanol Production Passes 550,000 b/d

America’s ethanol producers continue to rise up and meet the challenge of supplying a renewable alternative to gasoline and oil in the nation’s motor fuel mix.

According to Energy Information Administration data, ethanol production in the US for the month of March was 561,000 barrels per day, up more than 40,000 barrels per day from February.

The growth in biofuel production worldwide is having a significant impact on world oil markets.  The International Energy Agency reported that more than 1 million barrels of oil would be needed to replace the volume of biofuels available on the world market today.

The EIA also takes stock of the impact of the ethanol on oil consumption.  According to its calculations, ethanol is helping reduce US oil consumption by more than 330,000 b/d. 

All of this means that biofuels is playing a critical role in keeping oil from soaring to $165 per barrel and gasoline below $5 a gallon.