US ethanol supplies rise 14 percent as capacity increases; falling prices may result

The US Energy Information Administration said that U.S. ethanol supplies increased 14 percent in November to 11,194,000 barrels, as the result of a 45 percent increase in ethanol production capacity over the past 12 months.

According to the report, U.S. ethanol stockpiles have increased from 9.067 million barrels  in June, an increase of 18 percent.

The EIA stirred controversy last month when they released long-term fuel demand projections that the US will derive 83 percent of its energy needs from fossil fuels, down only 3 points from the 86 percent figure for 2006.

The EIA, which projected in its study that biofuel consumption would increase to 17 billion gallons by 2030, may have to revise its figures in the light of the passage of the Energy Bill. The Bill mandates that 36 billion gallons of biofuel fuel consumption by 2022, or more than 25 percent of total fuel use based on 2006 consumption.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Falling ethanol prices, capacity causes 28 percent price increase in ethanol blending credits in one week; leading indicator that the worst is over for ethanol?

In Washington, the prospect of rapidly falling ethanol supplies has caused the price of ethanol blending credits, known as Renewable Information Numbers (RINs), to soar by 28 percent. Under EPA rules ...

Consumer Federation accuses Big Oil of rigging oil markets with refining caps

The Consumer Federation of America accused the US oil industry of conspiring to create tight markets for oil, with resulting increases in prices. The report said that widespread gasoline availability,...

Farm Foundation report cities biofuels, demand growth and falling dollar for food price rise

The non-partisan Farm Foundation released a report on the forces driving food price increases, citing "global changes in production and consumption of key commodities, the depreciation of the dollar, ...

Nebraska professor says ethanol not a “big contributor” to food price rise

In Nebraska, University of Nebraska-Lincoln economist Richard Perrin testified that "it's obvious that [ethanol is] not a very big contributor" to the rise in food prices, saying that grains make up 3...

Oil prices (finally!) drop; food commodites ominously continue to track oil prices

Crude oil prices dropped on global markets yesterday, falling to $104.48 a barrel at the New York Mercantile Exchange, prompting a  4.3 percent drop to $11.75 per pound for sugar on the ICE Futures...

Oil and prices fall in 2008 while corn and soy to rise; sugar down 14 percent in 2007, confounding “food vs fuel” doomsayers

Commodity analysts are predicting that 2008 prices for oil will drop, while soy and corn will continue to rise after spectacular gains in 2007. For the year, Rick Mueller, an analyst with Energy Se...