U.S. gasoline consumption rose 0.8 percent in 2006, and the blending of fuel ethanol met the increase in demand, according to statistics compiled by the American Petroleum Institute (API).

The year's higher volume of gasoline deliveries was met entirely by a substantial jump in the blending of ethanol into gasoline, according to the API. Ethanol use in gasoline rose nearly 35 percent to an estimated 5.4 billion gallons in 2006, the API's December 2006 Monthly Statistic Report indicated. The report was published Jan. 19.

"Ethanol is a ubiquitous component of America's gasoline market and it is here to stay," said Renewable Fuels Association President Bob Dinneen. "The fact ethanol blends are making up for the entire growth in gasoline consumption means our nation is having to import less oil than would otherwise be needed."

The U.S. ethanol industry now has 115 operating plants with production capacity of more than 5.6 billion gallons per year. An additional 57 plants are under construction with nearly 4.2 billion gallons of capacity expected on line within the next 18 months.

U.S. refineries and blenders produced record amounts of gasoline and distillate fuel oil in 2006, API said. Refinery capacity, which increased for the 10th consecutive year, now averages nearly 17.4 million barrels per day.

The capacity was needed to meet gasoline consumption, which rose to 9.2 million barrels, or 386 million gallons, per day.

New domestic crude oil and natural gas production followed the sharp rise in energy prices in 2006. API's data showed that 2006 oil well completions were the highest in 18 years, while the completion of natural gas wells reached an all-time high. While crude oil imports edged up 0.5 percent for the year, product imports dropped 1.9 percent from 2005's record high, API said.

Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 1:53 p.m. CST Monday, January 22, 2007