BP eyeing biofuels as US gasoline demand shrinks

WASHINGTON, June 11 (Reuters) - Oil major BP Plc (BP.L) (BP.N) said on Thursday it was working on a biofuels strategy in the United States to help protect its refining business from weakening gasoline consumption.

"I think it's possible that we've reached peak demand (for gasoline)," said Lamar McKay, chairman and president of BP America. "Part of it is efficiency and part of it is biofuels penetration."

U.S. gasoline demand dropped last year for the first time since 1981 due to the effects of the recession and the administration of U.S. President Barack Obama has been pushing an alternative energy and efficiency agenda that could keep gasoline use from rebounding.

McKay said BP, which operates five large refineries in the United States, was studying ways of incorporating rising biofuels usage into its operations.

"Where do we stand on how we produce fuels at the refineries? How do we stand with biofuels? We've been working quite a bit on biofuels," he said. (Reporting by Tom Doggett, writing by Richard Valdmanis; Editing by Lisa Shumaker) by REUTERS