EIA Projects Increase in US Ethanol Production

The U.S. Energy Information Administration is anticipating U.S. ethanol production to grow to 850-thousand barrels per day in 2011, up from 700-thousand in 2009. The figures have been released in the EIA short term energy outlook.

That equates to approximately 13 billion gallons of ethanol production in 2011 and represents approximately 4.7 billion bushels of gross corn demand, with a third of that total returning to the livestock market. EIA expects production to equal demand.

Meanwhile, some are saying ethanol is affecting the - Dead Zone – in the Gulf of Mexico – more so than petroleum production. The Renewable Fuels Association says - while agricultural production may play some role, it is difficult if not impossible to single out one industry or source as the cause of seasonal hypoxia in the Gulf. RFA says - assertions that ethanol is the chief reason, or even a significant reason, are grossly overstated.

source: hoosieragtoday