Stifling Demand for Gasoline
There’s no longer any question that it’s time for America to free itself from dependence on oil — and ethanol is clearly an important part of the solution. Just look at today’s headline: “Ethanol boom may stifle U.S.
gasoline demand.”
Reuters reports that “explosive production is stifling an established driver of oil markets — U.S. gasoline demand –and could lead to lower prices at the pump.”
Here’s the trend: “U.S. gasoline demand growth has averaged about 1.3 percent annually from 1971 through 2007, but the growth rate has slowed in recent years, even as the population continues to grow, falling to 0.6 percent in 2007. Early this year gasoline demand growth has only been 0.4 percent.”
We’re on our way.
Source:
“Ethanol boom may stifle U.S. gasoline demand,” by Timothy Gardner and Rebekah Kebede, Reuters, February 14,
2008.
