US ethanol production hit all-time high in October: EIA data

US monthly production of fuel ethanol reached an all-time high in October, figures released Thursday by the US Energy Information Administration show.In October, US producers manufactureed 27,410,000 barrels of fuel ethanol, up from 26,061,000 in September. The previous record was set in August, at 26,963,000 barrels, according to EIA's data.

The agency's data also showed stocks declined in October, to 17,295,000 barrels, from 17,408,000 barrels at end-September.The US imported no fuel ethanol in October, EIA's report showed.

Industry analyst Andy Lipow calculated the percentage of ethanol in the US gasoline pool at 9.5% for October by converting the October ethanol production figure to 884,200 b/d, using US Department of Agriculture data to put exports at 26,800 b/d, and factoring in the stock draw.

Using EIA figures, Lipow calculated the overall October demand in the US for fuel ethanol to be 861,000 b/d. EIA put gasoline demand for October at 9,086,000 b/d, resulting in his 9.5% of the gasoline pool figure.

The January-to-October figures show average fuel ethanol production of 851,300 b/d, imports of 800 b/d, consumption of 825,700 b/d, and gasoline consumption of 9,054,000 b/d. This put ethanol at 9.1% of the US gasoline pool, according to Lipow.

The percentage of ethanol in the total pool of gasoline is significant in that a typical gallon of ethanol-blended gasoline has 10% ethanol in it; the 9.5% figure shows that ethanol has nearly saturated the US market.

The US Renewable Fuel Standard will push the required use of ethanol in coming years to well over the 10% of the gasoline pool. To that end, the Environmental Protection Agency has changed regulations to allow up to 15% blends in newer US vehicles. Automakers and gasoline sellers have criticized that move, citing insufficient testing of the new fuel in engines.

source: platts