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Ethanol Production and Demand Soar in 2006

Production increased by nearly 25 percent, while demand surged by 33 percent.

A report recently coauthored by the Energy Information Administration and the Renewable Fuels Association (RFA) indicates both production and demand for ethanol in the United States soared in 2006. Production of ethanol reached 4.86 billion gallons--an average of 317,000 barrels per day (b/d) or 13.3 million gallons per day—in 2006. That is an increase of 24.3 percent over 2005.

Likewise, demand for ethanol also increased. Demand for ethanol, as calculated by the RFA, reached 5.4 billion gallons, an average of 350,000 b/d. That is a surge of 33 percent over 2005.

“America’s ethanol industry is clearly stepping up to fulfill increased ethanol demand and help address the need to reduce America’s dependence on foreign oil,” said RFA President Bob Dinneen. “The nearly 25 percent increase in ethanol production over last year is consistent with the type of growth our industry has experienced in recent years and this growth will continue. The bottom line is America’s ethanol industry is up to the challenges that lie before us.”