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US gasoline supply deficit to more than halve by 2010
11/19/2007
The US gasoline supply deficit has grown considerably in recent years because demand growth has outpaced refinery output. The recent flurry of refinery expansion and upgrade projects, however, in addition to regulations that will increase ethanol consumption, will reverse this trend before the end of the decade.We expect the refinery supply deficit of gasoline to remain broadly constant in the short term at just more than 50 million tonnes; however, the addition of ethanol significantly reduces the balance. In 2006, ethanol use of 16 million tonnes reduced the total gasoline deficit to about 40 million tonnes.We forecast ethanol’s contribution to grow rapidly during 2006-10, increas...
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