Study shows RFS enhances energy security

In Washington, a new study shows that the Renewable Fuel Standard not only saves drivers money at the gas pump every day, but also enhances energy security by greatly reducing or even eliminating the blow to our nation’s drivers when global oil production is disrupted. The analysis confirms that the growing supply of ethanol significantly helps dampen gasoline price shocks that result from sudden oil market disruptions. If renewable fuels were removed from the fuel supply, gas prices would be more than $1 per gallon higher, the study found.

The study, by independent economist and energy expert Dr. Philip K. Verleger, Jr., looks at oil market disruptions over nearly 50 years and provides an example in which the availability of ethanol avoids a significant impact to U.S. gasoline prices from a supply disruption.