The U.S. Energy Information Administration has released its short term energy outlook. First, EIA is anticipating U.S. ethanol production to grow to 850,000 barrels per day in 2011, up from 700,000 in 2009. That equates to approximately 13 billion gallons of ethanol production in 2011 and represents approximately 4.7 billion bushels of gross corn demand, with a third of that total returning to the livestock market. EIA expects production to equal demand.
Meanwhile, some are saying ethanol is affecting the Dead Zone in the Gulf of Mexico more so than petroleum production. The Renewable Fuels Association says that while agricultural production may play some role, it is difficult if not impossible to single out one industry or source as the cause of seasonal hypoxia in the Gulf. RFA says that assertions that ethanol is the chief reason, or even a significant reason, are grossly overstated.
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