(June 21, 2013) WASHINGTON, D.C. – Today, the Renewable Fuels Association (RFA) replied to questions posed in an energy policy whitepaper released by the House of Representatives’ Energy and Commerce Committee. The whitepaper is the fourth in a five part series examining the impact of the Renewable Fuels Standard (RFS). In its response, RFA discusses the increase of new ethanol production, the decrease in petroleum imports, and the positive impact of the RFS in making our nation more energy independent.

RFA President and CEO, Bob Dinneen, stressed the positive impact of ethanol and the RFS, “One new energy source — ethanol — is already making a difference. Because of the RFS, ethanol already accounts for 10% of the nation’s gasoline supply. Because of the RFS, ethanol displaced the need for the amount of gasoline refined from 462 million barrels of imported crude oil in 2012. Because of the RFS, the biofuels industry stands ready to contribute substantially more to our nation’s energy and economic security.”

While some believe increased domestic oil production from unconventional sources is driving our dependence on imported oil down, Dinneen explained that such claims exaggerate the impact of these new supplies, and that the far greater impact has been from biofuels, particularly ethanol.

Dinneen stated, “Energy Information Administration cites ‘increased use of domestic biofuels (ethanol and biodiesel)’ as a major driver behind the decrease in petroleum import dependence. In fact, cumulative new ethanol production since 2005 has accounted for 62% of new domestically-produced liquid fuels, while cumulative new U.S. crude oil production has accounted for 38%.”

He then goes on to discuss increasing ethanol production and its impact on decreasing oil imports, specifically in finished gasoline. This can be seen in the chart below.

“As noted in the Committee’s white paper, U.S. dependence on imported oil and petroleum products has fallen in recent years. According to Energy Information Administration data, the share of U.S. petroleum consumption represented by imports has fallen steadily from 60% in 2005 to 40% today. It is important to note that this measure includes net imports of both crude oil and all other petroleum products. If just crude oil is considered, import dependence was 57% in 2012, meaning that the most significant reduction has been in petroleum products, i.e., finished gasoline. While several factors are responsible for the decrease in petroleum import dependence in recent years, the rapid emergence of ethanol production under the RFS stands out as a particularly important catalyst, largely eliminating the need for imported finished gasoline.”

RFA’s full response can be found here:
Attachments can be found here: Attachment 1, Attachment 2, Attachment 3, Attachment 4