Big Oil Could Lose $10 Billion if E15 is the New Regular

March 31, 2016

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(Minnesota Bio-Fuels Association) A new report by Reuters indicates that the oil industry could lose $10 billion annually if E15 replaces E10 and becomes the new regular in gas stations across the country.

The report, which can be found here, said : "At stake is about $10 billion oil firms would lose to ethanol producers if the higher ethanol blend became the new norm in a U.S. gasoline market worth $290 billion, based on average retail prices and gasoline demand of about 142 billion gallons."

With that in mind, it's no big surprise then that Big Oil vehemently opposes the RFS and any effort to increase the amount of ethanol blended into gasoline.

Moreover, with crude oil prices remaining stubbornly low, the oil industry has been ramping up its attacks on the ethanol industry now more than ever.

In fact, Reuters said, the auto industry's acceptance of E15 will challenge Big Oil's blend wall as "almost a fifth of the vehicles on U.S. roads can safely handle E15 fuel" based on the news wire's analysis of vehicle sales and government data. READ MORE and MORE (MSN.com) and MORE (Reuters)