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Farmers Continue to Expand Ethanol Production to Meet Increasing Demand

Demand increased 46,000 b/d from May and an increase of more than 42% from the same period a year ago.

U.S. ethanol production increased in June to 318,000 barrels per day (b/d), an all-time record, according to the Renewable Fuels Association. That is an increase of 25,000 b/d from May and a rise of nearly 28% from June 2005.

Demand for ethanol also rose to record levels in June at 395,000 b/d. That represents a 46,000 b/d jump from May and an increase of more than 42% from the same period a year ago.

The RFA released the following statistics:

June 2006 Statistics
(mg = million gallons; b/d = barrels per day) 

Fuel Ethanol Production

400.3 mg

318,000 b/d

Fuel Ethanol Use

498.1 mg

395,000 b/d

Fuel Ethanol Stocks

282.7 mg

21.2 days of reserve

Fuel Ethanol Exports

0.0mg^

n/a

Fuel Ethanol Imports

50.8 mg*

n/a

*Source: U.S. International Trade Commission
^ Jim Jordan and Associates 

"The U.S. ethanol industry has responded to the challenges of the President, the American public and the marketplace to increase the supply and availability of this cleaner-burning fuel," says RFA President Bob Dinneen. "As a result, we are reducing our dependence on foreign petroleum, helping preserve air quality standards in America's most polluted regions, and revitalizing economies in hundreds of rural communities around the country."

Currently, 101 ethanol biorefineries nationwide have the capacity to produce more than 4.8 billion gallons annually. There are 42 ethanol refineries and 7 expansions under construction with a combined annual capacity of nearly 2.9 billion gallons.

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