05 July 2006 20:15 [Source: ICIS news]
HOUSTON (ICIS news)--Methyl tertiary butyl ether, better known by its acronym MTBE, like a Hollywood superstar burned so brightly that it was destined to fade away well before its time was up. But as with so many ground-breaking American creations it continues to affect lives elsewhere on the globe.
At its zenith, MTBE commanded centre stage in both the oil and chemical industries as companies raced to build new plants to meet the anticipated surge in demand in the ?xml:namespace>
By 2002, global demand for MTBE was approaching 22m tonnes/year, with the
Yet by the late 1990s MTBE's demise in the
The oil industry’s inability to plug leaking gasoline storage tanks did not help. Growing proof that MTBE was contaminating ground water forced refiners to give up its use, in the very conutry it was born, in 2005.
MTBE, which at one stage traded at up to double the value of premium gasoline, fell in price this spring to change hands at under the price of petrol in
Many are converting their plants to produce the greener blendstock - ethyl tertiary butyl ether (ETBE) - which is made from agriculturally-based ethanol.
Listed below is the short history of MTBE in the United States.
May 2006 - Deadline to phase out of MTBE passed on 6 May. Market sources said ethanol was getting to the fuel pumps, but that logistical efficiency remained questionable.
April 2006 - Spot shortages of gasoline developed in several eastern
March 2006 - The National Petrochemical & Refiners Association predicted
February 2006 - The EPA said it would revoke the 2% oxygenate rule for gasolines on 6 May. Federal energy officials predicted that the rapid loss of MTBE as an oxygenate and inadequate ethanol capacity likely will cause gasoline shortages and price hikes in parts of the
August 2005 - Passage of the US Energy Policy Act mandates the end of the 2% oxygenate rule and includes the nationwide renewable fuels standard that will double the use of ethanol and biodiesel by 2012. Also,
July 2005 -
November 2004 - The 108th Congress ended without taking action on an energy bill. Congress was expected to take up the issue in its next session.
April 2004 - The US Senate rejected amendments that would have advanced energy legislation to remove the 2% gasoline oxygenate standard, mandate ethanol use and boost natural gas production.
March 2004 - US Representative Joe Barton (Republican –
February 2004 - Republican Senate leaders planned to introduce a slimmed-down version of the prior year's failed energy bill that would drop liability protection for MTBE producers in groundwater pollution lawsuits.
June 2003 - The US Senate passed an amendment to energy legislation that would require refineries to nearly triple the use of ethanol by 2012.
July 2002 - ExxonMobil said it would phase out MTBE as an oxygenate and switch to ethanol in
May 2002 - BP, California's largest gasoline supplier, said it planned to stop using MTBE as a fuel oxygenate and switch to ethanol in the state by the end of 2002.
April 2002 - The US Senate passed a bill that would triple the amount of ethanol used in cleaner-burning gasoline over the subsequent decade while phasing out the use of MTBE as an oxygenate within four years.
Additionally, California Governor Gray Davis postponed by one year a 1999 order that would have banned MTBE by the end of 2002. The governor said the delay was needed to give refiners more time to switch from MTBE to ethanol and avoid fuel shortages that could cause gasoline prices to increase.
June 2001 - The EPA denied
September 2000 - The Senate Environment and Public Works Committee voted 11-6 for a bill to phase out use of MTBE in US gasolines over a four-year period and to dramatically boost
March 2000 -
July 1999 - A special panel appointed by the US Environmental Protection Agency (EPA) called for a substantial reduction in the use of MTBE, which had contaminated groundwater supplies across the country.
April 1999 -
March 1999 -
January 1995 - The requirement for reformulated gasoline was implemented. The nine-worst ozone nonattainment areas in the country - Los Angeles, California; San Diego, California; Hartford, Connecticut; New York, New York; Philadelphia, Pennsylvania; Baltimore, Maryland; Houston, Texas; Milwaukee, Wisconsin and Chicago, Illinois – are required to sell gasoline containing at least 2% oxygenates, typically methyl tertiary butyl ether (MTBE).
November 1990 - Amendments to the Clean Air Act were adopted, one of which required the use of reformulated or alternative fuels in the country’s most polluted areas.
Further information is available on the following websites:
Renewable Fuels Association:
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|