Thursday, March 30, 2006

High ethanol, gasoline prices likely in near term

Some press reports imply that Ethanol is to blame for higher gasoline prices as MTBE use declines. The opposite is true. MTBE is not being phased out as a favor to ethanol. Rather, it has been found to contaminate drinking water supplies. It would be much more expensive to replace MTBE if we did not have ethanol. The report below gives a good overview of the near term situation. -- Jeffrey Goettemoeller
Oil & Gas Journal - High ethanol, gasoline prices likely in near term:
by Paula Dittrick -- 3/28/2006
"Midwestern states prohibiting methyl tertiary butyl ether in gasoline can expect higher prices, Routt said. Some refiners are shutting down sales of gasoline containing ethanol in the Midwest. California already has replaced MTBE with ethanol in RFG. Now the New England states in particular are demanding more ethanol in order to avoid using MTBE in gasoline. "

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