Washington finds unlikely ally in OPEC as biofuels debate rages

1 Jun 2015   Biofuels

The Obama administration has found an unlikely ally in its efforts to keep pushing more biofuel into the nation’s gasoline supply: OPEC. The lowest oil prices in over six years have fueled a resurgence in U.S. gasoline use in recent months as more Americans take to the road. Demand is expected to climb 1.5 percent this year to nearly 139 billion gallons (526 billion liters) according to the government’s most recent forecasts, enough to easily accommodate small increases in ethanol quotas without breaching the so-called “blend wall” that refiners say puts a cap on blending at around 10 percent of total gasoline and diesel supply. It may be even higher, based on data from the first quarter, when gasoline use surged by more than 3 percent, the fastest in over a decade. Those calculations help explain why biofuel backers are up in arms over the Environmental Protection […]

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