Strong ethanol rebound expected in 2014
In early 2013, the U.S. Energy Information Administration released its first Short-Term Energy Outlook to include forecasts for 2014. According to the EIA’s analysis, ethanol production will rebound to pre-drought levels during the second half of 2013, and continue to grow in 2014.
The expected average production rate for 2013 is 870,000 barrels per day, which equates to an annual production level of approximately 13.3 billion gallons. While production is expected to be maintained at current levels through the first half of the year, the EIA said that production should start to rebound following this year’s harvest, assuming the drought does not continue.
In the outlook, the EIA noted that it expects previously idled ethanol production capacity to come back online in 2014 to help meet the expanding renewable fuel standard volume mandates. Overall, production is expected to average 915,000 barrels per day, or 4 billion gallons per year, in 2014.