The Detroit News. The Energy Department's forecast also anticipates continued high natural gas prices that are likely to fuel steeper electricity costs across much of the country. How much more will depend on supply and distribution problems, the department said. Gasoline price flare-ups are likely to be regional and not nationwide, the report said. The industry may be better prepared for problems in the Midwest this summer, and a major pipeline that shut down last year has resumed full operation, the Energy Department report said.
Ethanol is produced from corn and is widely used as a gasoline additive in the Midwest.
Elsewhere the additive is usually MTBE, derived from natural gas. The energy outlook report said the economic slowdown had been expected to ease the squeeze on crude oil supplies. A particular worry is the low level of natural gas stocks in underground storage. If natural gas demand is strong for electricity generation this summer, stocks could fall further.