Thursday, June 28, 2012

RBN Energy With Great Discussion of US Gasoline Consumption

I don't think I've seen this discussion / explanation elsewhere, but again RBN Energy has a great graphic and an excellent discussion.
Consumers are using less gasoline this year just as they have done since 2005. When we last looked at the data from 2005 to 2011, we noted that the decline was primarily caused by Environmental Protection Act (EPA) and Energy Independence and Security Act (EISA, 2007) regulations. These regulations require the substitution of increasing quantities of renewable fuels into gasoline and they continue to be the cause of declining gasoline demand. Most of that renewable fuel is ethanol. The effects of the EPA and EISA regulations are still working their way through the market and each November the EPA publishes new rules to increase the percentage of renewable fuel required in gasoline up to a total of 36 Billion gallons by 2022. As of 2011 the required percentage was 8 percent. Renewables substitution will therefore continue to chip away at gasoline demand for the next decade.
Go to the link for the graphic, as well as for links to previous presentations that support the argument. 

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