Grainnet

RFA: May Ethanol Production and Demand Up 38% and 22% Respectively Over Year-Ago Levels

Washington, DC--Ethanol production and demand moved higher in May, reflecting the growth in the ethanol industry and the increased gasoline demand at the beginning of the summer driving season.

As oil refiners struggled to keep their facilities operating, ethanol production grew to an average of 406,000 barrels per day (b/d), according to information released by the Energy Information Administration (EIA).

This increase in production helped to mitigate the price spikes American drivers endured as a result of refinery maintenance problems, reduced gasoline inventories and higher crude prices.

Additionally, demand for ethanol also increased to an estimated 427,000 b/d per day.

Both production and demand represent increases of 38 and 22 percent respectively over May 2006 figures.

The RFA released the following statistics:

May 2007 Statistics

(mg = million gallons; b/d = barrels per day)

• Fuel Ethanol Production ... 528.1 mg ... 406,000 b/d

• Fuel Ethanol Use ... 562.6 mg ... 427,000 b/d

• Fuel Ethanol Stocks ... 375.9 mg ... 21.0 days of reserve

• Fuel Ethanol Exports ... 0.0mg^ ... n/a

• Fuel Ethanol Imports ... 34.5 mg* ... n/a

*Source: U.S. International Trade Commission

^ Jim Jordan and Associates

"While America's oil industry has not built a new refinery in more than three decades or sufficiently expand existing capacity to meet demand, the U.S. ethanol industry has built more than 120 ethanol biorefineries that today are helping to shield consumers in part from the highly volatile oil and gasoline markets," said Renewable Fuels Association President Bob Dinneen.

"As petroleum and energy industry experts have admitted, we must begin to utilize more renewable alternatives to fossil fuels if we are to meet the energy needs of this country and world in the future.

"Low carbon, renewable fuels like ethanol allow us to start down that path while also addressing the important problems associated with global climate change.

"Without the availability of ethanol, it is certain that gasoline prices would have been significantly higher when so many oil refineries went off line," added Dinneen.

Currently, 124 ethanol biorefineries nationwide have a capacity to produce more than 6.4 billion gallons annually.

Additionally, 75 biorefineries are under construction and 7 are expanding which will add more than 6.3 billion gallons of new production capacity by early 2009.

For more information, contact Matt Hartwig at 202-289-3835.