Future butanes supply/demand

This paper graphically depicts, through in-depth supply/demand analysis, how environmental regulations can be both bad and good for an industry. In the case of n-butane, the Environmental Protection Agency (EPA) summertime gasoline volatility regulations are a culprit - threatening to ultimately destroy refinery demand for the product as a gasoline blendstock. Waiting in the wings are environmental regulations that should eventually prove to be n-butane's savior. The regulations referred to here are the Clean Air Act (CAA) of 1990's mandate for motor fuel oxygenates. The negative impact of gasoline volatility regulations on U.S. n-butane demand and the positive impact that should come from the use of n-butane as a MTBE precursor are covered. Many variables exist which make studying the effects of these environmental regulations very difficult. Over the past three years RPC Group has conducted numerous studies on n-butane supply/demand, as impacted by both EPA gasoline volatility and fuel oxygenate regulations