Phase-out of MTBE coud worsen fuel shortages in 2006

The main alternative oxygenate is ethanol. Ethanol production will need to be ramped up to replace MTBE.
Oil & Gas Financial Journal - CEOs discuss top issues impacting oil industry in 2006:
by Bill Greehey, CEO of Valero Energy Corp
"Congress knew MTBE was the only oxygenate that could be readily available, so at Congress�s request we built a big plant and also put in some smaller MTBE units at our other refineries. Now Congress has decided they do not want MTBE. Under the new [Energy Policy Act of 2005], the oxygenate mandate goes away in May of 2006. Very few people realize that Valero and the majority of the refining industry are pulling the plug on MTBE. We are not going to make it without the legal protection the mandate afforded. So, right ahead of the peak summer demand for gasoline, the US is going to lose 150,000 barrels a day of gasoline production. Losing that much per day is a big, big deal, and it is going to have a big impact on supply. "