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Strong Domestic Consumption Contradicts Ethanol “Demand Destruction” Claims

The latest U.S. Energy Information Administration data again shows ethanol blending and consumption in the U.S. remain steady and strong compared to previous years. This disproves claims that U.S. ethanol demand has been decimated by hardship waivers exempting small refineries facing that are facing hardship from their Renewable Fuel Standard blending obligations.

Ethanol “Demand” Is Higher Than Ever

As we progress through 2019, one thing that has remained consistent is that U.S. ethanol consumption and blending are higher this year than they have ever been — a sign that small-refinery hardship waivers exempting some qualified facilities from Renewable Fuel Standard (RFS) blending obligations have not destroyed demand for ethanol.

When will enough ethanol be enough?

In recent weeks, President Trump returned to Iowa to court U.S. farmers ahead of the official launch of his reelection campaign and to sign his much-anticipated rulemaking allowing year-round sales of E15, an unlawful action that the U.S. refining industry is challenging in court.