Imports of crude oil have decreased significantly over the past four years as the U.S. has become more self-reliant in meeting its energy needs domestically. In fact, as the graph below shows, from the beginning of 2008 through the end of 2012 net U.S. oil imports have declined by more than 1.3 million barrels per day (bpd) while domestic production has increased by almost 1.5 million bpd. In short, the increase in domestic production accounts for all of the reduction in imports and then some.
The 2008-to-2012 timeframe is especially significant, because the Energy Independence and Security Act of 2007 (EISA 2007), which set the required ethanol volumes for the current Renewable Fuel Standard (RFS), was signed into law Dec. 19, 2007.
Here’s the point: The ethanol industry and its... more »