December 5, 2000

The Renewable Fuels Association (RFA) says the domestic ethanol industry has set a new all-time monthly production record in October. According to the latest data from the Department of Energy's Energy Information Administration (EIA), the ethanol industry produced more than 111,000 barrels per day on average in October, exceeding the previous monthly record set in April of 110,000 b/d. The ethanol industry is on pace to set a yearly production record of greater than 1.6 billion gallons of ethanol in 2000.

Eric Vaughn, president of the RFA, said production, short term and long term, is being driven by a "confluence of factors." OPEC is united in keeping the world price of crude oil at its current level. The domestic refining industry is operating at peak capacity, leaving little room to keep up with growing U.S. demand for gasoline and diesel fuel. States are acting to phase out MTBE and a national ban "is inevitable."

Said Vaughn, "Using ethanol reduces our dependence on high-priced foreign oil, expands our fuel supply to reduce refinery bottlenecks and can replace MTBE as a clean air additive in our nation's most polluted areas. At the same time, ethanol continues to be a cost-competitive octane and oxygen additive."

Given persistently low commodity prices and consistently high crude oil costs, increased ethanol production "remains the bright spot for farmers and consumers," Vaughn added. "This year's outstanding production is a testament of the ethanol industry's commitment to growth and expansion of clean, domestic, renewable fuels."