EIA: Biofuels will meet increased U.S. fuel use

By Kris Bevill | March 05, 2009
Web exclusive posted April 9, 2009, at 3:04 p.m. CST

The U.S. DOE's Energy Information Administration predicts that American consumption of liquid fuel will increase by a mere one million barrels each day through 2030 and that biofuels will provide enough supply to meet the demand. Increased use of domestically-produced biofuels will also contribute to an almost 10 percent decline in liquid fuels imports by 2030.

According to the EIA's 2009 Annual Energy Outlook, petroleum prices will continue to drive the rate at which renewable fuels are consumed. Overall oil consumption shows no growth between 2007 and 2030 as a result of increasing corporate average fuel economy (CAFE) standards and increased requirements for renewable fuels. However one EIA model shows that if oil-producing countries rapidly expand their petroleum output to keep oil per barrel prices low, biofuel consumption might only reach 27 billion gallons by 2030. On the other end of the scale, the EIA's high oil price model predicts that if oil producers maintain tight control over their supply and prices increase to near $200 per barrel in 2030, total biofuel consumption could reach 40 billion gallons.

The entire 230-page report can be viewed at http://www.eia.doe.gov/.