Institute for Energy Research says ethanol not responsible for cutting oil imports

In Washington, the Institute for Energy Research says ethanol has done little to reduce oil imports. Since 2008, net oil imports have declined by 58 percent (6.4 million barrels per day), while domestic oil production has increased by 88 percent (4.4 million barrels per day). Ethanol production, however, has only increased by 360,000 barrels per day. The increase in U.S. oil production is about five times the output of all the ethanol distilleries in the country.

Because of the shale oil renaissance, the United States is producing oil at levels last seen in the early 1970s and storage is at record capacity. Ethanol is more expensive on an energy-adjusted basis than gasoline, but the RFS mandates ethanol anyway. Even if the RFS were abolished, U.S. refineries would still use ethanol because it serves as an oxygenate and octane booster in gasoline. The major difference would be that the blend wall would no longer be a problem and that consumers with small engines would be more readily able to find ethanol-free gasoline.