The Renewable Fuels Association reported that September 2007 ethanol production continues to grow averaging 441,000 barrels per day. Demand fell to 422,000 barrels per day.
Ethanol production continued to grow in September, averaging 441,000 barrels per day (b/d) according to the Energy Information Administration.
Ethanol demand, despite the economic advantage ethanol had over gasoline, fell to 422,000 b/d representing a monthly decrease from August of 54.2 million gallons.
It is no surprise that production is up since many new plant constructions and expansions are going on, but for demand to fall is somewhat puzzling given the fact that the wholesale price of ethanol is lower than the wholesale price of gasoline.
“Despite the economic advantage ethanol blending offered refiners, and most importantly consumers, the actual blending of ethanol decreased.
"With ethanol-blended fuels offering the opportunity to save consumers up to 10 cents a gallon at the pump, it is baffling why more gasoline blenders were not blending more ethanol.”
Renewable Fuels Association Releases September 2007 Ethanol Production and Demand