EIA Issues Short-Term Energy Outlook Report
On July 11, 2017, the Energy Information Administration (EIA) issued its June Short-Term Energy Outlook (STEO). EIA considered EPA’s recent rulemakings on the 2017 RFS volume requirements and proposed 2018 RFS volume requirements when developing its STEO for 2017 and 2018.
Biodiesel production averaged 101,000 barrels per day (b/d) in 2016, and, according to EIA, is expected to increase to an average of 105,000 b/d in 2017 and to 109,000 b/d in 2018. Biomass-based diesel imports are expected to fall from 54,000 b/d in 2016 to 53,000 b/d in 2017 but rise to 59,000 b/d in 2018.
Ethanol production averaged 1.0 million b/d in 2016 and is expected to average slightly above 1.0 million b/d in 2017, which would be a record, but will likely decline slightly in 2018. Ethanol consumption averaged about 940,000 b/d in 2016 and is forecast to increase slightly in 2017 and 2018. As a result, the ethanol share of the total gasoline pool will increase to nearly 10.1% in both 2017 and 2018. Only marginal increases in higher-level ethanol blends are assumed to occur during the STEO forecast period.