Chevron’s David O’Reilly addressed the Cambridge Energy Research Associates conference in Houston on Tuesday, explaining that U.S. supply of ethanol to meet energy needs is ample and growing.

 
O’Reilly addressed rising concerns over both conventional and alternative fuels: “There is going to be a large supply of ethanol,” O’Reilly said. “Capacity is about there today.”

 
O’Reilly also said there’s enough ethanol to produce gasoline blended with 6% to 7% of the corn-based fuel, and to reduce hydrocarbon consumption, he proposed to attain a fuel mix with 10% ethanol.

He also claimed that a rise in diesel use in the U.S. might also alter the fuel mix “Likely with environmental pressures, there will be more dieselization in the United States.”

 
The move toward new fuel options will not decrease reliance on traditional fuels in the short run, said O’Reilly, who also insisted that Chevron remains on track, even in areas where conventional projects have been delayed.  One such example is Project Kuwait, the oil-rich country’s ambitious production expansion plan, which has been long delayed.