Methanol supply and demand issues from a California perspective

This paper reports that despite state policies aimed at reducing high levels of petroleum dependency and air pollution, California relies primarily on petroleum fuels for transportation. As an alternative to petroleum-based fuels, methanol has become increasingly important because of its potential for improving energy security and air quality. A growing body of evidence also suggests that methanol could serve as a toxic substance control by displacing benzene in gasoline. In light of these findings, recent governmental and private-sector activities have been focused on methanol, creating a momentum that has substantially improved the prospects of this fuel for use in the transportation sector. Because this momentum could lead to greater demand for methanol fuel, questions of methanol supply demand, and availability must be addressed.