Ethanol Distribution, Trade Flows, and Shipping Costs

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2015-09-01
Authors
Gallagher, Paul
Denicoff, Marina
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Gallagher, Paul
Associate Professor Emeritus
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Economics

The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).

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The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.

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1898–present

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  • Department of Economic Science (1898–1910)
  • Department of Economics and Political Science (1910-1913)
  • Department of Applied Economics and Social Science (1913–1924)
  • Department of Economics, History and Sociology (1924–1931)
  • Department of Economics and Sociology (1931–1967)

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Abstract

The distribution system for U.S. transportation fuels evolved over many decades. The infrastructure and equipment were originally developed for liquid petroleum fuels, and ethanol was integrated into the system as it became an important component of gasoline. Petroleum fuels are distributed from the major refining areas in the U.S. Gulf Coast, and to a lesser extent, from western and eastern ports to consumer markets. Since oil refineries are not evenly distributed throughout the United States, the industry has developed a sophisticated transportation network to deliver its products nationwide and also meet the demand of high- consumption areas with dense populations, such as the East Coast, the West Coast, and along the Gulf Coast. Petroleum fuels are generally transported long distances by pipeline, ship, and barge to fuel terminals. When gasoline arrives at a terminal, it usually is blended with up to 10 percent ethanol to make E10. Trucks are then used to move the finished fuel to local retail gas stations or other end-use locations.

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This report chapter is from Gallagher, P. and M. Denicoff, “Ethanol Distribution, Trade Flows, and Shipping Costs”, Chapter 5 in U.S. Ethanol: An Examination of Policy, Production, Use, Distribution and Interaction with the Corn Sector, J. Duffield, et al, eds, Office of Energy Policy and New Uses, US Department of Agriculture, September 2015.

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