Ethanol production this summer is projected to average about 399,000 bbl/d, up from last summer’s average of 313,000 bbl/d per day.

New ethanol plants started coming online in the second half of 2006 and domestic production rose to an average 375,000 bbl/d in January 2007. Ethanol production capacity is expected to continue increasing rapidly in both 2007 and 2008 as current construction of about 80 new plants and plant expansion projects is completed.

Methyl tertiary butyl ether (MTBE) was phased out last year, so the blending of MTBE into gasoline fell from around 90,000 bbl/d in January, 2006 to less than 10,000 bbl/d by May, 2006. New ethanol plants, which were being built in anticipation of the MTBE phaseout, were not yet ready to start operation, and domestic ethanol production in this period increased only slightly, from 288,000 bbl/d to 293,000 bbl/d.