RFA Says Ethanol Production Saves Up to $1.50 Per Gallon at the Pump
September 25, 2013 3:17 PM
Verleger said that oil prices would be $15 to $40 a barrel higher than they are today without ethanol added in
A new analysis shows that American consumers are saving anywhere from millions to even trillions of dollars annually at the pump thanks to
According to the Renewable Fuels Association (RFA) -- which presented information from former Ford and Carter administration energy advisor Philip Verleger -- American consumers are paying between 50 cents and $1.50 per gallon less for gasoline due to the addition of ethanol blends (such as
, which is 15 percent ethanol and 85 percent gasoline).
further said that consumers are saving from $700 billion to about $2.6 trillion annually on gas because of ethanol.
Verleger said that oil prices would be $15 to $40 a barrel higher than they are today without ethanol added in.
“Had Congress not raised the renewable fuels requirement, commercial crude oil inventories at the end of August would have dropped to 5.2 million barrels, a level two hundred million barrels lower than at any time since 1990,” said Verleger. “The lower stocks would almost certainly have pushed prices higher. Crude oil today might easily sell at prices as high as or higher than in 2008. Preliminary econometric tests suggest the price at the end of August would have been $150 per barrel.”
AAA said the national average is about $3.50 a gallon and the cost per barrel is around $100-$110.
E15 in particular has been a hot topic this year. In August, the U.S. Environmental Protection Agency (EPA)
froze a planned bump in ethanol levels
that was set for next year. The freeze came after state efforts to ban E15, and House debates on whether to cut the blending requirements entirely.
In 2012, only 4.55 billion bushels of corn was used to produce ethanol, which was down from 5 billion bushels in 2011. About 13.33 billion gallons of ethanol was produced last year, missing the goal of 15.2 billion gallons.
Ethanol opponents say the use of ethanol blends takes away from the nation's corn crops, and livestock farmers saw the cost of feed inflated by having to compete with ethanol. In addition, environmentalists say corn ethanol produces more emissions over its life cycle than oil.
Furthermore, ethanol can damage many old vehicles (and even some new) on American's roads because parts in the engines made of rubber, plastic, metal, and other materials aren't made for high ethanol blends.
Later in August of this year, big oil firms filed a request to cut the ethanol target for 2014. The EPA announced that refiners must blend in 18.15 billion gallons during 2014 under The
Energy Independence and Security Act of 2007
's (EISA) Renewable Fuel Standard (RFS) terms. The oil industry, however, wants that target to be slashed 3.35 billion gallons to a total of 14.8 billion gallons.
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
Big Oil Firms File Request to Slash Ethanol Target for 2014
August 19, 2013, 6:14 AM
Ethanol Protectionism is Rocked by EPA Freeze; E15 Stalled for Now
August 7, 2013, 5:22 PM
PIQ ROBOTTM reveals its new artificial intelligence software
November 29, 2016, 12:59 AM
One more time - Happy Thanksgiving to Everyone Around the World
November 24, 2016, 4:00 AM
Google’s Smart Contact Lens Project gets halted for 2016
November 20, 2016, 7:00 AM
Cell Research Study shows African Americans have greater immune response to infection
November 10, 2016, 1:00 AM
UTHealth Clinical Trial Shows Progress Using Stem Cells to Treat Traumatic Brain Injury
November 8, 2016, 1:00 AM
Uber Partners with Circulation to Pilot Program Connecting Transportation and Digital Health Care
November 6, 2016, 5:00 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
Motorola Moto G5 Pus – Well Worth Considering Over the Others
April 25, 2017, 7:06 AM
SAPPHIRE PULSE Radeon RX 580 8GD5 – Great Value for the Money
April 20, 2017, 7:47 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Latest Blog Posts
Galaxy Note 8 – Available Second Half 2017
Apr 28, 2017, 7:30 AM
Google Android App – Huge improvement on Nighttime Photography
Apr 27, 2017, 7:40 AM
Google Co-Founder, Sergey Brin has an Airship
Apr 26, 2017, 6:43 AM
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information