The latest report from the Energy Information Administration (EIA) concludes that ethanol will reduce U.S. petroleum demand by 130,000 barrels per day this year.
According to the EIA’s Short-Term Energy Outlook, “The slowing economy combined with high petroleum prices is expected to constrain growth in U.S. consumption of liquid fuels and other petroleum products to just 40,000 barrels per day (bbl/d) in 2008. After accounting for increased ethanol use, U.S. petroleum consumption falls by 90,000 bbl/d.”
The projected higher costs for crude oil in 2008 are likely to be passed on to all petroleum products. Retail prices for motor gasoline are expected to average $3.21 per gallon or 40 cents above the 2007 price. The monthly average gasoline price is projected to peak near $3.50 per gallon this spring. It is important to note, however, that even if the national average monthly gasoline price peaks near that level, there is a significant possibility that prices during some shorter time period, or in some region or sub-region, will cross the $4 per gallon threshold.
“America’s ethanol industry is living up to its end of the bargain by helping reduce petroleum use and moderate prices for Americans at the pump,” said Renewable Fuels Association President Bob Dinneen. “The nearly 8 billion gallons of ethanol being produced on an annual basis today is a vital component of our nation’s gasoline supply, adding volume and helping to mitigate the price increases that will occur as oil continues its meteoric rise.”
This year has been an exceptionally snowy one for much of the U.S., and some students in Michigan are making use of all the snow… while learning about the benefits of biofuels.
“As diesel costs continue to skyrocket, this tax break will help ease the pain at the pump for consumers while helping to develop our state’s biodiesel industry,” Rounds said in a news release. “Biodiesel is an ideal alternative to petroleum-based fuel. It will not reduce mileage, and because of its increased lubricity, it is better for the engine.”
The Missouri State Senate has passed a biodiesel standard that would require all diesel sold in the state to contain at least 5 percent biodiesel.
The move has gained the praise of the Missouri Soybean Association:
“A B5 Standard is the next step in advancing Missouri’s growing biofuels industry and we are grateful for the leadership that Senator Stouffer has provided on this important issue,” said Dale R. Ludwig, Missouri Soybean Association (MSA) Executive Director/CEO. “It is refreshing to have people who realize the important role biodiesel can play in reducing our dependency on foreign oil. Missourians can take pride in knowing that homegrown, renewable fuels, such as biodiesel, keep more dollars in the state when we spend less on petroleum-based fuels.”
“With our support for renewable fuels and the leadership of the Missouri Corn Growers, our state has become a leader in ethanol production,” Blunt said. 
I finally had the chance today to sit down and listen to the entire speech Assistant Energy Secretary Andy Karsner made at the 
I’d like to thank all the people who completed our annual visitor survey and were entered into a drawing to win an iPod Nano. Your feedback and participation is very helpful.
The 
The boat, Earthrace, is set to make another attempt at circumnavigating the globe fueled by biodiesel.