Ethanol Fuel in The United States - Energy Security

Energy Security

One rationale for ethanol production in the U.S. is increased energy security, from shifting supply from oil imports to domestic sources. Ethanol production requires significant energy, and current U.S. production derives most of that energy from domestic coal, natural gas and other non-oil sources. Because in 2006, 66% of U.S. oil consumption was imported, compared to a net surplus of coal and just 16% of natural gas (2006 figures), the displacement of oil-based fuels to ethanol produced a net shift from foreign to domestic U.S. energy sources.

According to a 2008 analysis by Iowa State University, the growth in U.S. ethanol fuel production caused retail gasoline prices to be 29–40 cents per gallon lower than would otherwise have been the case. The U.S. consumed 138.2×10^9 US gal (523×10^6 m3) of gasoline in 2008, blended with about 9.6×10^9 US gal (36×10^6 m3) of ethanol, representing a market share of almost 7% of supply by volume. Given its lower energy content, ethanol fuel displaced about 6.4×10^9 US gal (24×10^6 m3) of gasoline, representing 4.6 percent in equivalent energy units.

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