 |
In light of concerns
regarding MTBE water contamination, Getty Petroleum recently announced its
decision to switch from MTBE to ethanol-blended reformulated gasoline. One of
the nation's largest independent marketers, Getty is providing ethanol at its
1,200 stations located in twelve states in the northeast.
In a letter to California Governor Gray Davis, Getty Chairman and CEO Leo Liebowitz says he sees no reason why refiners in California couldn't follow his example. "Getty prides itself on its commitment to providing cost-competitive high performance-fuels to consumers while helping to improve air quality and protecting the environment," Liebowitz said. "We believe our ethanol blend program will accomplish all of these goals and more, and that gasoline marketers in all reformulated gasoline areas currently using MTBE, including those in California, will ultimately follow our lead to a more environmentally sound and economic alternative - ethanol."
Responding to concerns in California regarding supply, logistics and cost associated with switching to ethanol, Liebowitz stated that his company's transition from MTBE to ethanol has been seamless. "Virtually every one of our terminals is capable of receiving gasoline products, including ethanol, by either rail or barge," Liebowitz said. He added that blending ethanol with gasoline is "uncomplicated" and "highly automated." Indeed, "blending equipment for gasoline additives exists at every fuel terminal in the country; merely augmenting those systems to allow for ethanol blending is neither complex nor time-consuming," Liebowitz said.
As for ethanol supply and cost, Liebowitz noted that strong competition exists between ethanol suppliers, particularly in light of the current surplus of ethanol. "The very fact that there are far more ethanol producers than MTBE manufacturers lends itself to increased competition and reduced cost," he said. To promote the switch to ethanol, Getty has printed brochures available to gasoline consumers at their stations, taken out full-page ads in newspapers such as the New York Times and included information on their web site, www.getty.com
The National Corn Growers Association has lauded Getty for
switching to ethanol, noting the additional demand for ethanol will create real
economic opportunities for corn growers and rural America, who are confronted by
a nationwide farm crisis.
