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.
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